Welcoming Changes to Allow Credit Unions to Expand

Madeleine Moon MP welcomes new powers to allow credit unions to offer more services to many more people

Madeleine Moon, MP for Bridgend, has welcomed changes coming into force on 8 January 2012 that mean credit unions will be able to deliver more services to more members and communities.

Credit unions will now be able to offer membership to more than one group of people, no matter where they live or work. For the first time, credit unions will be able to pay interest on deposits, instead of a dividend, and businesses and community organisations will be able to join a credit union and use the services it provides.

The changes will help individuals, businesses and other organisations access fair and affordable financial services in their communities and allow credit unions to provide a more effective alternative to high street banks on the one hand and high cost lenders and loan sharks on the other.

Madeleine said

“The new rules mean credit unions can now compete more effectively with banks and other lenders to provide fair and affordable financial services. Credit unions will be able to reach many more people, helping them to develop a savings habit, which can only be good for communities.”

“The New Year is the ideal time for people to take a look at their finances and a great first step would be to contact your local credit union and see how easy it would be to start putting some money aside, either for a rainy day or perhaps for next Christmas”.

“Bridgend has its own credit union, Bridgend Lifesavers. They can be contacted on (01656) 729912 or through their website http://www.blscu.co.uk/index.php.”

As financial co-operatives, owned and controlled by their members, credit unions have no outside shareholders to pay and any profit they make stays in the community and is used to develop the credit union and provide a return to savers.

For more information about the new credit union powers, the services provided by credit unions and who can benefit visit www.abcul.coop.