Credit Unions To Offer Banking Services

Over 70,000 credit union members in Scotland, Yorkshire and London will be able to use ATM machines and direct debits later this year. Their credit unions have been named as the first credit unions to offer banking services by the Association of British Credit Unions Limited (ABCUL) and The Co-operative Bank.

In what is seen as a major step change in the development of credit unions in the UK, the credit unions will be able to offer their members a bank account with a debit card which can be used in shops and to withdraw money from cash machines.

Although there will be no chequebooks or overdrafts, accountholders will be able to set up standing orders and direct debits.

The accounts will be run and promoted by the individual credit unions but the behind the scenes administration is being carried out by The Co-operative Bank. Following the successful completion of this first phase, the service will be rolled out to other credit unions throughout the UK in 2007.

The credit unions concerned are: Capital Credit Union (Edinburgh, Lothian and the Borders), Glasgow Council Credit Union, Hull and East Yorkshire Credit Union, Leeds City Credit Union, Scottish Postal Workers Credit Union, Scotwest Credit Union, Southwark Credit Union and White Rose Credit Union (Wakefield, West Yorkshire).

23 May 2006

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