Employer Based Credit Unions
Employee Credit Unions have always been amongst the strongest credit unions in Britain and have helped to lead the way on many of the sector’s initiatives. In most parts of the world strong credit union sectors have often developed out of employment based credit unions opening up their membership further once they are established.
Under the Credit Unions Act 1979 the common bond is based upon one of the following:
• following a particular occupation
• residing in a particular locality
• being employed in a particular locality
• being employed by a particular employer, such as Passenger Transport, NHS, Police Industries, or
• being a member of a bona fide organisation or being otherwise associated with other members of the society for a purpose other than that of forming a society to be registered as a credit union.
Employees who join credit unions through their employer can benefit in a number of ways. First of all, it allows them to save regularly, which they may not do otherwise. As the money is deducted from the salary before it gets to the employee, it is also less noticeable. Also, a credit union also offers a source for loans in times of need, helping to keep employees, especially those on lower incomes, out of the clutches of more expensive money lenders or even loan sharks.
For more information regarding what Employee Credit Unions can offer, click on the links below for more information.