Government changes law to allow charities to join credit unions

Submitted by Stephen on 9 January, 2012 - 09:30
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Charities, social enterprises and community groups are now able to join a credit union under changes made to the Credit Unions Act 1979.

Previously, only individuals were able to be members of credit unions and use the financial services they provide. However, last November, a Legislative Reform Order was passed by Parliament, under the Credit Unions Act 1979, meaning that from 8 January credit unions can:

  • reach out to more people by extending membership to new groups – as a credit union will no longer have to prove that everyone who can join the credit union has something in common;
  • provide services to community groups, social enterprises and businesses, not just individuals; and
  • choose to pay interest on savings, instead of a dividend.

For details about the Croydon, Merton and Sutton Credit Union click here.