From 8 January, housing tenants and employees will begin to benefit from new credit union powers to reach many more members, communities and housing organisations. The new powers are the result of legal changes which will give credit unions more flexibility to choose who can access their services. This means that new partnerships will allow all of a housing organisation’s tenants and employees to join one credit union, no matter where they live or work. For the first time, housing and other community organisations will be able to join a credit union and use the services it provides, and credit unions will now be able to pay interest on deposits, instead of a dividend, helping to mobilise community savings. Although many housing providers already work with credit unions in their communities, up to now they have been hampered by outdated restrictions which meant all of a credit union’s members had to have something in common – such as living in the same geographical area or working for the same employer – and only individuals were able to become members, not companies, community groups or social enterprises. Credit unions no longer have to prove that all the eligible members have something in co
mmon. Read more on the Housingnews website.
