|
| Area | Problems
| Section in CU Act/ IPSA needing revision or removal
| Suggestions for change
|
|
| Membership | Restricted common bond legislation
| s1(2)(b), s1(4), s1(5), s21(3)(b
| Allow credit unions to determine their own common bond
|
| Non-qualifying member rules causing problems in mobile society
| s5(5), s5(6), s5(7), s5(8)
| Introduce once a member, always a member and abolish 10% limit on NQM
|
| Minimum age 16 stops younger savers from belonging to credit union
| s9(1), IPSA 1965 s20 |
Abolishing minimum age will encourage saving amongst young people and encourage financial capability
|
| Inability to provide services to organisations limits ability to help local groups, encourage enterprise and benefit from capital from companies and local organisations
| s5(1) | Allow credit unions to provide services to organisations.This will also facilitate the creation of a Central Services Organisation for credit unions.
|
| Savings | Inability to pay interest on savings
| s12(4) | Allow credit unions to pay interest on savings will encourage more sophisticated savers to use credit unions
|
| Confusion over attachment of shares
| s7(5) | Allow all shares to be withdrawable unless securing loan or member is in arrears
|
| Other Services | Credit union objects may not enable the credit union to provide all the services their members need
| s1(3) | Objects need to enable credit unions to provide services members need and have flexibility to adapt to the future.
|
| Restrictions on credit unions' ability to charge for auxiliary services limit their ability to offer other services to members.
| s9a(1) | Abolish requirement that charges must `cover the cost of providing the service'
|
| Structure | Requirement to maintain register of members does not comply with Data Protection Act
| IPSA 1965 s44(1) | Abolish requirement to maintain register of members.
|
|
| This paper is agreed by all of the credit union trade bodies.
|
