Parliament approves changes to Credit Union Act

Credit unions across Britain have welcomed news that Parliament has today (8th November) approved changes to legislation which will free up credit unions to reach many more members, including community groups and businesses.

A Legislative Reform Order, which makes changes to the Credit Unions Act 1979, has been approved by Parliament and new rules that enable credit unions to compete more effectively with banks and other lenders will be in place by January 2012.

Mike Horncastle, Chief Executive of North Yorkshire Credit Union said: I'm delighted that after two years of parliamentary discussion and feedback this Reform Order has been approved. Many potential new Credit Union Members have been waiting for this moment, and it will give us a whole new range of opportunities to serve our growing Membership.

Mark Lyonette, Chief Executive of ABCUL said: “Credit unions in Britain are delighted that legislative reforms have been agreed by Parliament which free up the sector to compete on a more level playing field. ABCUL has campaigned long and hard for these changes so we’re happy that credit unions will be able to use the new powers from the New Year.

Chair of the All Party Parliamentary Group on Credit Union, Damian Hinds MP said: “I’m very pleased that the LRO has now been made. It opens up so many new possibilities for the sector to evolve, innovate and grow. The regulatory changes will help credit unions work more effectively with partners including housing providers and employers, and encourage more people to develop a savings habit.”

The credit union sector in Britain is small compared to other countries such as the United States and Canada, where over 40% of the populations belong to a credit union. Credit unions in Britain have, up to now, been hampered by outdated restrictions which limit who can join, what services they offer and which places they operate in.

The Order makes a number of changes, including allowing credit unions to provide services to community groups, attract investment from local businesses and extend services to new groups, including housing association tenants and employees. 

2011 AGM News

The Directors of your Credit Union have made a decision to delay the 2011 Annual General Meeting until the New Year

As last year, the Directors were planning to hold the 2011 AGM before Christmas but, due to the imminent introduction of a Legislative Reform Order (LRO) by the Government allowing changes in the way Credit Unions operate and which must be voted on by the Members before it can be adopted, have decided to delay the AGM until the New Year to allow the LRO to come into force.

The LRO will cover a number of areas of importance in terms of growth and development, some of which will impact on North Yorkshire Credit Union, and some which may be adopted later as the Credit Union grows.

The main areas of importance for the Credit Union are

1. The ability for the Credit Union to accept a limited number of 'Corporate Accounts', based on a percentage of the total membership of the Credit Union.

2. The relaxing of the Common Bond rules, allowing organisations based within the Common bond but having employees/clients outside the Common Bond to offer CU services to those people not previously eligible for Membership.

Once the LRO has passed into law we will be able to provide a more detailed breakdown of the contents of the Order.

Before the Credit Union can adopt the Order a Rule change is required and this must be approved by the Members at an AGM or Special General Meeting (SGM) held for the purpose. 

As the AGM can be held at any time up to the end of March and the LRO is due to pass into law in mid-January, the Directors made the decision to delay the AGM to allow the LRO to be discussed and voted on there.

Further details will be added to the News section as they become available.

International Credit Union Day 2011

This year's International Credit Union (ICU) Day® theme, Credit Unions Build a Better World celebrates the important economic and social contributions credit unions make to their communities worldwide. Financial cooperatives around the globe will celebrate their heritage and contributions on Oct. 20.

2011 sees continued growth at your credit Union

The financial year at North Yorkshire Credit Union has ended with a further significant level of growth, continuing the rapid growth seen over the last five years of operation.

We have increased our membership since October 2010 by an incredible 72%, with many new Junior Savings joining us through school Savings Clubs this year.

The savings balance held by Members has increased in the same period by 52%, and our loans portfolio has seen a similar sharp rise.

All this serves to underline the fact that our Members see the Credit Union as a safe and secure home for their savings, and that we are increasingly seen as an integral part of North Yorkshire's financial market-place.

Mike Horncastle, the Credit Union's Manager and Chief Officer said, I'm really delighted for everyone who works for, supports, and volunteers at the Credit Union that we have again seen really significant growth in our membership and savings balances.

Serving our Members well is key to our continuing success, and I know that the entire team involved with North Yorkshire Credit Union has worked unstintingly this year to take us closer to being the substantial and stable organisation we know we can be.

It's definately true that from little acorns mighty oak trees grow. Only five years ago the Credit Union was operating from a tiny office on Priory Street with borrowed furniture, borrowed computers and two development staff. Both Peter and myself are still here and, while we've seen the Credit Union move to larger and larger premises in that time, we still have a strong understanding of where we came from and an urge to grow by providing a level of service second to none.

The Credit Union anticipates similar growth in the coming months and looks forward to reporting further successes next year.

You can now save up to £23,000

We are pleased to announce that from the 1st October 2011  you can save over 50% more with North Yorkshire Credit Union.

Our maximum savings limit rose from £15,000 to £23,000 for each member.

When the Credit union launched in 2006 the maximum individual savings limit was set by the Financial services Authority at £10,000. This is the maximum allowed for all new Credit Unions. Since then we have been able to increase our maximum savings limit year by year.

North Yorkshire Credit Union has now grown sufficiently that we can increase our maximum savings rate to £23,000 for each saver.

Every year we are able to announce the new maximum saving rate, which becomes effective from 1st October.

If you'd like to save with the Credit union, or are a saver and want to make further deposits, please see the savings page of the website for further details.

Mike Horncastle, Manager 30/09/2011

Co-Operative Electrical supports NYCU

An initiative has been launched to help people on low incomes buy electrical goods without having to turn to doorstep lenders.

Online retailer The Co-operative Electrical has joined forces with North Yorkshire Credit Union to help people who are financially excluded buy appliances, such as cookers, fridges and televisions, with affordable loans.

It is estimated that up to eight million people in the UK cannot access mainstream credit, with many instead turning to doorstep lenders or loan sharks, because they are unaware they could borrow money from a credit union.

Under the new scheme, members can apply for a loan for electrical goods and select the product they want to buy on-line from The Co-operative Electrical.

Once their loan has been approved, we will place the order and the item is delivered to the member's home within 48 hours.

David Sanderson, commercial manager of The Co-operative Electrical, said: The impact of the recent recession has resulted in more and more people experiencing the restrictions of financial exclusion, paying the price for limited choice with interest rates and charges many times higher than those of mainstream personal loans.

For those without access to credit or the available funds to take advantage of online discounts, the prospect of buying electrical products can be daunting - often there is no option but to turn to high interest loans, costly weekly payment retailers or loan sharks.

Mike Horncastle, Manager of North Yorkshire Credit Union added “We’re delighted to be able to offer this new and innovative service to our members across York and North Yorkshire. It is particularly valuable to our rurally-based members, who often have to make do with a reduced level of service from electrical retailers. When the goods are delivered the delivery team will even remove the packaging, which in turn is recycled to reduce waste”

The initiative, which is thought to be the first of its kind in the UK, was piloted with Knowsley Mutual Credit Union, near Liverpool. There are plans to extend it to all credit unions in the UK mainland.