The rules of the credit union to be reformed

The government are to bring new measures in next year to strengthen the finances of credit unions.

The measures look at allowing credit unions to broaden their membership and pay interest on members’ deposits.

Credit unions typically serve people on low incomes and are small-scale savings and loan co-operatives.

There are about 600,000 members in the Great Britain between 535 credit unions.

It is the believed the government wants to help credit unions expand so that people in financial difficulty do not go to loan sharks.

Some of the proposed changes are highlighted below:
• Credit unions will be able to charge for their services i.e. the issuing of cheque
books.
• Groups of people will be able to join and not just individuals.
• Interest will be paid on savings, which should attract more people to use credit unions.