Craigmillar Credit Union

2 Niddrie Mains Road
Edinburgh
EH16 4BG

Tel: 0131 661 9942
Fax: 0131 661 6472

E: craigmillarcu@googlemail.com

History of Credit Unions

HISTORY

The roots of the modern day credit union movement can be traced back to mid-nineteenth century Germany. A succession of small societies was established around the country for the purpose of poor people pooling together their limited financial resources. This formed a common fund from which small loans could be granted for the alleviation of debt, and as an affordable alternative to expensive sources of borrowing. This simple, yet effective, concept of self-help and co-operation rapidly spread throughout mainland Europe and across the Atlantic to North America and Canada.

In contrast, in mainland Britain, it¹s only over the last 20 years or so that the development of the credit union movement has really gathered momentum. Today there are now a number of British credit unions to compare with some of the biggest and most successful in Ireland where the movement flourished much earlier. Over three hundred thousand members now entrust well over two hundred million pounds worth of savings in one of over seven hundred credit unions up and down the country.

Currently, the future direction for the British credit union movement is attracting a great deal of positive political and media attention. At long last credit unions are being increasingly acknowledged as key tools in the battle to combat financial exclusion. It is a harsh reality for millions of people on limited or no incomes that they are unable to access even the most basic financial services, of the type many of us simply take for granted. For many, the services of a credit union provide a vital financial lifeline for managing tight budgets and planning for larger expenses, such as holidays and Christmas. Additionally, borrowing from a credit union offers an affordable and realistic alternative to the punitive interest rates typically attached to the limited range of credit services lenders are prepared to offer people on low incomes.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .