Community groups, social enterprises and charities can now benefit from new credit union powers

From next week, charities, social enterprises and community groups across England, Scotland and Wales will be able to join a credit union and benefit from its services under changes that have been made to Credit Unions Act 1979.

In November 2011, a Legislative Reform Order was passed by Parliament meaning credit unions as of 8 January can now:

* Reach more people by extending membership to new groups without having to prove that everyone wishing to join has something in common

* Provide services to community groups, social enterprises and businesses

* Choose to pay interest on savings instead of a dividend

The changes now mean that community organisations can benefit from financial services and credit unions can help manage a group's money when they might have had trouble opening up a bank account.

“These changes are a major breakthrough in the delivery of credit union services to organisations around Britain,” said Mark Lyonette, Chief Executive of ABCUL – the Association of British Credit Unions.

“The new rules mean that, for the first time, credit unions will be able to offer services directly to charities, social enterprises and community groups, allowing credit unions to compete more effectively with banks and other lenders to provide fair and affordable financial services. The changes will also help credit unions build stronger relationships with the staff, members and service users of organisations, helping them to develop a savings habit – which can only be good for communities.”

To find a credit union in your area visit http://www.findyourcreditunion.co.uk/home