Statement by Credit Union trade association

 In the light of the current financial situation, the major trade association of credit unions ( ABCUL ) has issued a statement to stress the security and mutuality of the credit union sector

10 October 2008

 

MESSAGE FROM CREDIT UNION ASSOCIATION

 

The Association of British Credit Unions Ltd (ABCUL) has moved to reassure credit union members who may be concerned about the safety of their savings in credit unions as financial turmoil amongst mainstream institutions continues. 

 

ABCUL Chief Executive Mark Lyonette said

  

“As credit unions do not rely on borrowing from other banks or the international money markets and are not in the business of buying up the debts of other financial institutions they are well sheltered from the economic turmoil which is causing worry for so many people at the moment.  Credit unions use the savings of their members to make loans to other members and are very self contained institutions. 

  

“Directors are volunteers who are elected from the membership of the credit union, by the membership of the credit union so only have the well being of the credit union and its members to consider – their decisions are not influenced by the demands of external shareholders or short term fluctuations in share prices.

  

“The events of the last few weeks have given enormous weight to our belief that mutual and local financial services such as credit unions are the way forward in making sure that individuals and families have safe and secure financial services. 

 

“Savings in credit unions are covered by the Financial Services Compensation Scheme in the same way as deposits held in banks and building societies are.  The extra compensation limits which have recently been announced are to be welcomed in helping people have peace of mind that their hard earned savings are protected. “

10/10/2008