Credit Unions are membership based organisations, much like co-operatives. Members have a say in how their credit union is run and may receive a share of the profits – a dividend.
Credit Unions offer a range of straightforward saving products and fair, manageable loans to members. There are around 500 credit unions in the UK and more than 1.8 million members UK wide, and this number is increasing. The credit union movement is global – there are credit unions in 109 countries, with over 231 million members worldwide!
To join a credit union you usually need to live or work in a certain area, or do a certain type of job. This is known as the credit union ‘common bond’, meaning members have something in common.
Everyone who lives or works in Shropshire, Telford and Wrekin and South Staffordshire can become a FAIRshare member. If you do not live or work in these areas, you can Find Your Credit Union here.
A Credit Union’s customers are its members. Members choose to join a Credit Union to save ethically, benefit their local community and access fair, manageable loans.
Credit unions promote responsible lending and do not lend more than their members can afford to repay:
Regular savings from members create a “pool of money” which is used to offer fair, manageable loans to other members. When you borrow from us, we allocate part of your weekly or monthly repayments to your savings account. This creates a cash lump sum when you have repaid your loan. This is a great benefit when borrowing from a credit union.
By saving with your local Credit Union, you know your money is being used for the benefit of the local community. Credit Unions run on a not-for-profit basis, with any surplus being put into reserves or paid back to members as an annual dividend. The interest earned on loans pays for the credit union’s administration.
Yes. As with banks and building societies, your savings are protected by the Financial Services Compensation Scheme (FSCS). Should a credit union go out of business and be unable to repay its members in full, the FSCS will cover the full amount up to £85,000*. Credit Unions are regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Do you have a question about FAIRshare services? Our team is ready to answer all your questions.