Membership - Frequently Asked Questions
Q: Can anyone become a member?
A: Credit Union membership is open to anyone who lives within our Common Bond. We require two forms of Identification and £1 Entrance Fee, put £5 in your savings and you are welcome as a member.
Q: What makes credit unions different?
A: Credit Unions are financial co-operatives that are owned and operated by its members on a not for profit basis, that allow you to save regularly and to borrow at low rates of interest.
Q: What do you mean, not for profit?
A: Members save regularly. From this pool of savings, low cost loans are made to members for productive purposes at a low rate of interest. The necessary expenses of the Credit Union are paid from this loan interest. What is leftover is given back to the members as a dividend and used to build reserves for the security of member’s savings.
Q: Who owns the Credit Union?
A: A Credit Union is owned equally by its members. It does not matter if you have a £1 or £500 in shares, everyone has only one vote. The Credit Union is autonomous, within the framework of law and regulation and the Credit Union is a co-operative, serving and controlled by its members.
Q: How do members exercise control?
A: Members should attend Annual General Meeting each year. Every member has one vote and exercises total control by using that vote. The AGM elects members to run the Credit Union, which includes the Board of Directors, the Credit Committee, the Supervisory Committee and an External Auditor. To ensure that members are fully informed and enabled to take part in the policy making of the Credit Union, the Annual General Meeting should always be well attended. At this meeting members are encouraged to ask questions about the day to day running of their Credit Union, study the accounts, decide on distribution of the surplus and put themselves up for election or carry out their democratic responsibility by electing suitable board members to run the Credit Union on their behalf. Note: The work done by the Board of Directors, Credit Committee and Supervisory Committee is voluntary. They are not paid to manage the Credit Union.
Q: Can anyone become an officer in the Credit Union?
A: No. Officers need to be 18 and over. There are restrictions on who can become an officer - for example, anyone who has been made bankrupt. In addition all potential officers must satisfy strict conditions set by the Prudential Regulatory Authority and the Financial Conduct Authority
Q: Can children save?
A: We actively encourage you to open accounts for your children, grandchildren, nephews and nieces. As well as being a good method of saving it also teaches the ethos of the Credit Union and helps them in later life to manage their money effectively. The parent or guardian who is opening the account must fulfil the necessary common bond requirements of membership, only if the child lives outwith the common bond – Parkhead Area
Q: Can children borrow?
A: No, theirs is strictly a savings account but they may receive interest on their savings.
Q: How much should I leave in my account for it to stay active?
A: If you need to withdraw money from your shares but still wish your account to remain active, you must leave a minimum of £5 in your account.
Q: Is my business confidential?
A: Every officer in a Credit Union signs a Declaration of Secrecy and if they betray this confidence they are removed from office. Volunteers are asked to sign this declaration every year and they also must abide by its rule.
Q: What about the volunteers who help out at collection points?
A: The Credit Union relies on the goodwill of all our volunteers who give up their time voluntarily to service our collection point. At the moment your Credit Union couldn’t function without them. They don’t get paid and your patience is always appreciated.