Craigmillar Credit Union

2 Niddrie Mains Road
Edinburgh
EH16 4BG

Tel: 0131 661 9942
Fax: 0131 661 6472

E: craigmillarcu@googlemail.com

Glossary

FINANCIAL SERVICES AUTHORITY (FSA)
The official regulator of all providers of financial services in the UK, from the largest banks and building societies to the smallest credit union. All credit unions must have official authorisation from the FSA to perform their functions.

ABCUL (ASSOCIATION OF BRITISH CREDIT UNIONS LTD)
The country's largest credit union trade representative body. ABCUL is the preferred body of around 85% of Britain¹s credit unions, including Craigmillar.

FINANCIAL OMBUDSMAN
The independent body which has the power of adjudication over disputes between customers and financial service providers. The ombudsman will only get involved in such disputes after all other direct avenues have been explored without reaching a mutually acceptable resolution. Any grievance should be raised with the credit union complaints officer in the first instance.

FINANCIAL SERVICES COMPENSATION SCHEME
This provides credit union savers with the same protection as customers of banks and building societies, in the event of the credit union becoming insolvent. The scheme provides 100% cover for the first £2000 of a member¹s savings and 90% of the next £33000.

COMMON BOND
All credit unions need to have a common bond from which they can draw their membership. As a community credit union, Craigmillar's bond is that of either living or working (paid or voluntary) in the Greater Craigmillar area. Other types of bond are trades and associations.

FIDELITY BOND
This compulsory bond ensures that the members' savings are protected in the event of a credit union representative committing a theft or fraud.

APR (ANNUAL PERCENTAGE RATE)
The annual interest rate charged on your credit union loan. This is set at 12.68% (although it can be lower) and this translates into 1% per 30 days on the OUTSTANDING loan balance. For example, a £500 loan over one year would cost a maximum total interest of only £31.16.

DIVIDEND
If the credit union generates a surplus it can return that to the members in the form of extra shares to the account, similar to interest on a bank account. If so this is paid proportionately according to the individual's share balance. For example, a dividend declared at 8% would pay 8 pence to every pound held in shares, or £8 per £100.

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