Legislation
Legislative Change for Credit Unions
The main law governing credit unions is the Credit Unions Act 1979.
A Legislative Reform Order (LRO) has recently been made by Parliament and changes to the Credit Unions Act came into force on 8th January 2012.
The changes remove restrictions in the current law and allow credit unions to choose to: -
- Reach out to new groups, by serving more than one group of people
- Provide services to community groups, businesses and co-operative
- Offer interest on savings, instead of a dividend and
- Allow more people who move jobs or home to continue to receive services from the credit union.
These changes will allow credit unions to serve many more people and use the increased flexibility to provide the services that people need.
A full briefing on the changes can be downloaded on the right hand side of this page.
More information on the opportunities this provides for partnership working with housing providers, employers and other community organisations can be found here http://www.abcul.coop/credit-unions/newopportunities
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