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A Credit Union is a financial cooperative owned by its members. It has a volunteer Board of Directors democratically elected by the membership in AGM. Volunteers and staff run the day-to-day business of the Credit Union. A Common Board, such as living in an area, working for an employer or being associated with a club (or combination of theme) joins all members. A Credit Union is a ‘non for profit’ organisation run to benefit all members. The aim of a Credit Union is to encourage members to save and give theme access to borrowing at low rates of interest. |
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Saving with Your Credit Union |
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Credit Unions encourage members to save regularly in an accessible and easy way. Once the Credit Union has built financial reserves it may offer a reward on savings in the form of a dividend. Withdrawals are made easy and savings act as the basis for any Credit Union loan. |
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Borrowing from Your Credit Union |
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As a ‘non for profit’ organisation the Credit Union is able to provide low interest loans. Interest is set by the Board of Directors at a maximum of 12.68%, charged at 1% per month (and paid on a daily basis) on the reducing balance. For example a £1000 loan repaid in 12 monthly instalments will cost £66.18 in interest. As the Credit Union grows stronger this may be reduced. |
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- Democratically owned and controlled by the membership.
- A ‘non for profit’ organisation run purely to benefit its members.
- Dedicated team of volunteers and staff there to help you.
- Money can be deposited in the Credit Union in an accessible way, i.e. local collection points, standing orders, payroll deduction, etc.
- Loans tailored to individual needs (usually £50 and upwards) available at low rates of interest.
- Typically, junior or family member accounts are available.
- As the Credit Union grows and has adequate reserves, additional services may be offered in the form of:
- Dividend paid on shares
- Paid staff
- Extended opening hours
- Central location
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All business within the Credit Union is conducted in the strictest confidence and each elected officer and staff member must sign a pledge of secrecy that is binding for life. Credit Unions are fully complaint with the Data Protection Act 1998 and are regulated by the Financial Services Authority (FSA). |
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Credit Unions were introduced in Scotland in February 1970. The pioneer and driving force of the Scottish movement was Bert Mullen, an unemployed painter and decorator, who founded the Western Credit Union (now Drumchapel Community Credit Union Ltd). No significant growth happened in Scotland until the 1980s, where growth took an upsurge, and has subsequently gone from strength to strength. In Scotland there are over 120 Credit Unions with combined membership of almost 125,000. Today, more and more people are discovering the Credit Union difference and joining the money revolution. |
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Additional Credit Union services |
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Subject to FSA approval, additional services such as bill payments may be offered. Contact us for details. |
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Our Services