| Title:
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CREDIT UNIONS IN SCOTLAND
SECOND REPORT OF SESSION 2008-09 REPORT, TOGETHER WITH FORMAL MINUTES, ORAL AND WRITTEN EVIDENCE |
| By: |
Great Britain: Parliament: House of Commons: Scottish Affairs Committee |
| Format: |
Paperback |
| List price:
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£14.50 |
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| ISBN 10: |
021553025X |
| ISBN 13: |
9780215530257 |
| Publisher: |
TSO |
| Pub. date: |
18 May, 2009 |
| Series: |
House of Commons Papers Session 2008-09, 218 |
| Pages: |
49 |
| Synopsis: |
Credit unions are co-operative organisations which allow members to save and borrow money - essentially democratic savings and loans institutions - and have a statutory role of providing financial education. The work of credit unions is extremely valuable for both communities and individuals. Ring-fenced funding for credit unions from the Scottish Executive now totals only GBP 250,000, a sharp decrease from over GBP 2.7m before 2008. Provision of low-cost, responsibly-lent finance is crucial to mitigating the debt crisis that causes so much misery: encouraging the practice of saving is equally vital to creating a generation of financially responsible people. The credit crunch is an opportunity for credit unions to build on their existing success and raise their public profile. The credit union movement in the UK sees the recruitment of more affluent members to be key to their expansion and security. The Treasury has put forward legislative reform proposals in 2008 including: allowing credit unions to pay interest on savings, rather than just dividends; allowing groups to join unions; and, changing the common bond definition to widen membership.The Government caps the credit union interest rate on loans at 26.8 per cent APR and the Committee urges the Government to introduce a cap on interest rates for the whole financial sector, rather than just credit unions. The introduction of credit union current accounts has also proved a success. There is room for co-ordination between unions and the Post Office to provide current accounts for the 11 per cent of Scottish people who do not have bank accounts. The Government should provide financial backing to enable more credit unions to provide current accounts. |
| Publication: |
UK |
| Imprint: |
Stationery Office Books |
| Returns: |
Non-returnable |