
NFRN Credit Union Limited


New law for credit unions
08 Jan 12
Changes to the Credit Unions Act have come into force that will allow credit unions to change their rules to allow them to provide services to new groups and develop new services and partnerships.
The restriction that meant that everyone eligible to join a credit union had to have something in common has been removed. Credit unions are now free to extend their reach and work with organisations such as housing providers, employers and charities to bring financial services to new groups of people.
Credit unions will also be able to choose to provide services to community groups, social enterprises and businesses, helping organisations that need financial services and attracting investment into communities.
Paying interest instead of a dividend is also now an option for some credit unions, making their savings products much easier to compare.
“These changes are a major breakthrough in the delivery of credit union services to communities around Britain,” said Mark Lyonette, Chief Executive of ABCUL – the Association of British Credit Unions.
“The new rules mean credit unions can now compete more effectively with banks and other lenders to provide fair and affordable financial services to individuals and orgnisations. Credit unions will be able to reach many more people, helping them to develop a savings habit, which can only be good for communities.”
Speaking in November, Financial Secretary to the Treasury Mark Hoban said: “I want to see credit unions grow to meet the needs of their members and communities they serve. The LRO is key to that and I am pleased that it has now passed through Parliament. I look forward to hearing how credit unions will use these new powers when they come into force in January.”
More details about the changes can be found here http://www.abcul.coop/media-and-research/legislation
More details about how this providers new opportunities for housing providers, employers and other community organisations can be found here http://www.abcul.coop/credit-unions/newopportunities

Barnardo’s calls for credit union services to be made available through the Post Office
04 Jan 12
A report from the respected children’s charity, Barnardo’s, has highlighted the plight of low income families forced to take out high cost credit agreements and calls for credit union services to be made available through the Post Office network.
The report, A Vicious Cycle: The heavy burden of credit on low income families, analyses the impact of high cost credit on low income families and provides shocking examples of how the poorest often pay most with one high-profile weekly-payment, rent-to-own store charging in excess of £1704 for a standard fridge-freezer compared with £430 for the same item at a well-known highstreet electrical retailer if paid for in cash.
The report identifies credit unions as key to ensuring a fair deal for those on a low income, stating: “Barnardo’s believes that now is a critical time for the future of the credit union movement. The DWP is due to announce its intentions on the modernisation programme for credit unions [...] and has already stated that it would ideally like to provide access to credit unions over Post Office counters.
“Making credit union services available through Post Offices could dramatically increase access to affordable credit, safe savings and other financial services for millions more people. This would mean that customers could walk into any of the 11,500 UK Post Office branches and join their credit union. [...] This should now be translated into a firm policy commitment with detailed timescales for implementation. The Post Office is one of the few organisations with the geographic coverage to be able to reach low income customers and offer a credible alternative to expensive, doorstep credit.”