Credit Union

 

What is a Credit Union?

Credit Unions are locally run, not-for-profit organisations offering savings schemes and low interest loans to their members. Any surpluses made are returned to members as dividends or re-invested in the Credit Union.

Each Credit Union has a Common Bond which determines who can become a member, and now Bedford Credit Union are extending their common bond to cover the whole of Mid Beds. 

A Credit Union is managed and controlled by a Board of Directors, which is elected by the members at the Annual General Meeting.  Each member of a Credit Union has one vote, regardless of the amount of their savings. The Board of Directors are all volunteers and receive no compensation for their services.

What are the benefits?

A Credit Union in Mid Beds would have a number of beneficial effects including:

• Encouraging saving.  Members may open more than one savings account - eg Christmas savings accounts as alternative to such as Farepak, or for holidays, weddings, etc.
• Providing low cost loans - dependent on the amount saved, no arrangement or re-arrangement fees, no penalty charges, and flexibility to suit members' circumstances.
• Payroll Deduction - a painless way to save and no need to visit the offices
• Free Insurance – loan protection insurance is built into loan arrangements at no extra cost to the member. This insurance covers the amount of any outstanding Credit Union loan if a member dies. Additionally a free life insurance scheme provides a lump-sum if a member dies. The amount paid depends on the member's age and amount of savings they had.
• The Department for Work and Pensions allows Credit Unions members to have their benefits paid directly into their saving accounts.
• Help reduce the increasing levels of personal debt problems
• Providing education and advice on financial management, especially for young people

How safe are my savings?

Credit Unions operate in Britain under the provisions of the Credit Unions Act 1979. They are regulated and supervised by the Financial Services Authority (FSA), which is also responsible for the regulation of all other financial services providers in the country.  So not only is there strict regulation by the FSA, but also Credit unions are members of the National Compensation Scheme which guarantees 100% of members' savings in the event of a Credit union collapse.

How can I join?

Because Bedford Credit Union is already operating, people living or working in Mid Beds can become members straight away. Over the next 12 months, local Credit Union offices in Mid Beds will be trialled but until then their central office is in St Paul’s Square, Bedford.

Opening Hours are:

Monday: 12noon – 4pm
Tuesday: 7pm – 8.30pm
Wednesday: 10am – 4pm
Friday: 10am – 1pm
Saturday: 9am – 12 noon

How can I help?

By becoming a volunteer – want to learn new skills, or do you have skills that could be utilized to help? We require cashiers and receptionists, loans officers dealing with loan applications, directors, help to run school savers clubs, and supervisory committee members. A minimum weekly commitment would be 2 hours per week. Training will be provided.
 
By becoming a member – you can join the Credit union if you live or work in Mid Bedfordshire. 

For more information about becoming a volunteer or a member to just finding out more contact Bedford Credit Union  on 01234 346352 , visit us at 6 St. Paul´s Square  Bedford MK40 1SQ or email bedcu@tiscali.co.uk