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What Is A Credit Union?
Who can join a credit union and how?
Is it democratic? Can it be bought out or taken over? Is it ‘Regulated’ in any way?
Can the people running it be trusted with the money of others?
Is there an investment return on my savings?

How does a Credit Union trade?

How are loans applied for and how much can be borrowed?
How much can be borrowed?
Are those with previous poor credit records able apply for a loan?
Complaints - how are these dealt with?
What makes credit unions work the 5 Ps
Whats in it for the owner-members?

Is there an investment return on my savings?  

Yes, there can be. Every pound saved buys a ‘share’ in the credit union.

If a trading surplus is made by the credit union, after an allocation to the reserves (a cushion against bad debts) and the length of time shares remain continuously invested; this gives qualification to a share of the dividend pool. This method stops ‘dividend stripping’ or “share posting”, i.e. the making of short-term deposits to buy a dividend with the shares then withdrawn.  This approach is unique to credit unions and underlines their fairness to all owner-members.

The Regulators can give consent to established credit unions with audited reserves (set at a regulatory level) to pay interim dividends or even have a long term fixed dividend account.

Dividends and where appropriate interest on shares is paid gross and in most cases added to the owner-member’s share account, increasing their savings.


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