FREQUENTLY ASKED QUESTIONS


CREDIT UNIONS

 

IS MY MONEY SAFE IN A CREDIT UNION?

Absolutely. Credit unions are covered by the Financial Services Compensation Scheme which protects deposits up to £85,000.

 

HOW CAN I FIND MY NEAREST CREDIT UNION?

If you don’t know which credit union serves your area or profession then just go to findyourcreditunion.co.uk and enter your details - it will tell you which credit unions you are eligible for to join.

 

ISN'T THE DEEPER PROBLEM HERE THAT PEOPLE ARE JUST LIVING BEYOND THEIR MEANS?

If we're honest we could probably all get better at managing our money, and it's certainly true that we live in a culture that often promotes consumerism and spending over prudence and saving. However, we need to be careful not to blame the victims of exploitative lending. Most people who end up in debt do so because of a major unforeseen change in their circumstances, and many others are doing their best to scrape by on minimal income and an ever-rising cost of living. Credit unions are attractive because they are about both saving and borrowing - they can encourage people to live within their means whilst also helping them out when that proves impossible.

 

ARE CREDIT UNIONS THE ONLY SOURCE OF ETHICAL FINANCE?

Not necessarily. There are a number of what are called Community Development Finance Institutions (CDFIs) in the UK which are seeking to provide more ethical forms of finance to individuals and businesses.

 

MY NEAREST CREDIT UNION SAYS THEY DON'T WANT MORE SAVINGS, WHAT SHOULD I DO?

Even if your credit union already has plenty of savings to lend out, it's still worth joining and depositing a small amount of savings regularly, even if only to help normalise the idea of credit union membership. And it's important to remember that if you ever need to borrow for whatever reason that you should at least consider doing so from your local credit union.

 

MY NEAREST CREDIT UNION ISN'T RESPONDING TO MY MESSAGES, WHAT SHOULD I DO?

Credit unions are often over-stretched and under-resourced to partner with individual churches, so be patient but persistent with them. And if all else fails, go down to your nearest branch and ask to meet the Manager or a Board member.

 


Please contact us if you have a question that is not covered here.