| When you are on a low income, it is very
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| | regulatory requirements Credit Unions now
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| difficult to get credit. And yet, most of
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| | have to meet to safeguard member's money
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| us could not manage certain purchases
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| | in the same way as banks and building
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| outright, even if we get a decent wage.
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| | societies- Obtain funding & sponsorship
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| This is where the Credit Union offers a
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| | -and include the figures in your business
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| real alternative.Run by a volunteer board
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| | plan- Choose officers - Officers and
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| of directors which are elected by its
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| | employees of the credit union will need
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| members, a Credit Union is basically a
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| | to obtain 'Approved Persons Status' from
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| financial cooperative, owned and
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| | the FSA, and will need training for their
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| controlled by its members.They offer
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| | roles- Think about marketing & promotion
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| affordable loans and encourage members to
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| | and how you will meet your business plan
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| save. By law, the maximum a Credit Union
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| | targets- Launch your credit union.It is
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| can charge is 12.7% and this is charged
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| | also vital to secure sponsorship from
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| on an ever reducing balance, which means
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| | local sources, such as employers, housing
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| that every week or month, you will pay
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| | associations, business groups or councils
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| less and less interest. There are no
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| | as setting up your own credit union can
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| hidden charges and you will not be
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| | initially be an expensive process. ABCUL
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| penalised for repaying the loan
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| | estimates the costs at between £30,000
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| early.Anyone can join a credit union, as
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| | and £70,000 in setting up a scheme with
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| long as they are part of the 'common
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| | premises and staff for the first three
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| bond'. This could be people living in a
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| | years.Credit unions in the UK are also
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| shared area, working for the same
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| | required to reach a statutory minimum
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| employer or belonging to the same
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| | reserve of 10 per cent of aggregate
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| association.So how do you start your own
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| | assets to protect their members. Until
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| credit union?The average time it takes to
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| | they reach this level, credit unions
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| establish a credit union is between one
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| | should transfer at least 20 per cent of
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| and three years. The minimum number of
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| | their surplus into reserves each
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| members required for the initial set up
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| | year.Covering you and your membersIn the
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| is 21 and the maximum number of members
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| | UK a credit union has to take out
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| once you are established is limited to
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| | insurance to protect its members' funds
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| just 5,000 people.After you have secured
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| | from fraud and mismanagement. However,
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| enough members to start your union, there
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| | there is no industry-wide compensation
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| are a number of tasks which will need to
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| | scheme to protect members' savings should
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| be completed.- Firstly, decide on a
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| | a credit union become bankrupt.Before you
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| common bond - where your credit union
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| | set up your credit union from scratch,
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| will operate- Get a group together with
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| | consider investigating if credit unions
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| the necessary range of skills and
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| | in neighbouring areas would be willing to
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| experience to develop a successful
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| | expand their common bond to your locality
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| community business- Carry out a pledge
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| | or place of employment.Many credit unions
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| drive - find out just what demand there
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| | are expanding their common bonds to cover
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| is for a credit union in the area you
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| | much larger populations, and your area
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| wish to service and use the information
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| | may already be included in someone else's
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| obtained to inform your business plan
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| | plans. ABCUL can advise you on
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| projections- Join The Association of
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| | initiatives happening where you are, and
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| British Credit Unions (ABCUL) as a Study
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| | put you in touch with the right people.To
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| Group member - for just £35 a year, you
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| | the wider community, a Credit Union
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| get a full manual and access to all of
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| | improves the general financial knowledge
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| ABCUL's information services- Discuss and
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| | of its member and offers training to its
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| research your plans with the regulators -
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| | volunteers investing in local money.It
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| The Financial Services Authority (FSA)
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| | helps restore a sense of pride in
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| will need to approve your common bond and
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| | disadvantaged and disaffected communities
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| satisfy itself that your business plan
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| | and provides a means of targeting
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| and policies and procedures meet its
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| | financial exclusion.
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| standards. The FSA website gives the
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