Banks and some Building Societies are financial institutions that accept deposits and make loans. They are in business to make a profit. They are chartered, or given permission to do business, by the state or federal government. They are owned by groups of stockholders whose interests include earning a healthy return on their investments.

There are about 700 Credit Unions in the UK and at least one new Credit Union registering every month.

A credit union is a group of people who save together and lend to each other at a reasonable rate of interest.

For the past decade people in Great Britain have achieved a better way of life through their participation in their credit unions. They do this by forming a credit union or by joining an existing one.

Today, thousands of members enjoy the benefits of credit union by saving together and being able to borrow at a reasonable rate of interest when the need arises.

The Credit Union Movement is strictly non-sectarian and non-political.

The Association of British Credit Unions Limited (ABCUL)

The Association of British Credit Unions Limited is the representative body for credit unions and provides a wide range of support services for all affiliated credit unions.

A Board of Directors elected at its Annual General Meeting by delegates from affiliated credit unions directs the Association. A delegate who has one vote may represent each credit union.

Chapter

The Association organises convenient groupings of credit unions, which are known as Chapters.

Each credit union is allocated to a local Chapter of credit unions. Chapter supports the role of the Association and provides an opportunity for the exchange of information among credit union personnel. Most Chapters meet on a regular basis.

Reasons for credit unions

The main reasons why people come together to form or join credit unions are:
· To encourage thrift by helping themselves save on a regular basis thereby building up a fund of money for their own
· Benefit and that of other members
· To create a source of credit for the benefit of members at a fair and reasonable rate of interest
· To help members use their resources to the best advantage
· To promote the welfare of the community.

Self-Help

In Britain there has been a long tradition of co-operative self-help exemplified by numerous voluntary organisations and friendly societies.

The modern Credit Union Movement shows that by working together people can achieve far more through co-operation than by individual effort.

Any group of people sharing a 'common bond' can form a credit union. Every eligible person has the right to join an existing credit union.

Credit unions put people first

Credit unions have been very successful in helping people gain a greater measure of control over their personal finances. They are an effective means of teaching the value of voluntary action and community development. The members are the credit union. They provide services to themselves.

· The members own and control the credit union
· The credit union deals only with its members
· The members decide on the distribution of surpluses
· The credit union management is of a voluntary nature. ............................................................................................ Back