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What are the objectives of a Credit Union?
To encourage members to save. To provide low cost loans for members.
To provide life insurance for eligible members at no extra cost to individual members.
What are Credit Union Operating Principles?
Credit Unions are unique, are unlike every other financial institution in their purpose, their governing rules, and the service they provide. Key differences include: Credit Unions do not and cannot (by law) speculate with members' money. Credit Unions do not want, and cannot have, big deposits. Credit Unions can only lend for provident and productive purposes. Credit Unions only lend to their members, who must be saving regularly to be eligible for a loan. The savings and loans of our credit union members are insured (up to generous limits) at no extra cost to the individual member.
What about security and confidentiality?
In order to protect the interests and secure the operation of the Credit Union, this Credit Union carries a Fidelity Bond for all staff and volunteers. All League affiliated Credit Unions are members of the Savings Protection Scheme which gives protection to members' funds. The savings of members of credit unions in Northern Ireland which are affiliated to the Irish League of Credit Unions (ILCU) is protected by the ILCU's Savings Protection Scheme (SPS) at the discretion of the Administration Committee of the ILCU Board. Currently the SPS fund stands at over £88 million. In addition to this, credit unions in Northern Ireland have reserves of £107 million (12.4% of total assets) which are there to act as a first line of defence should the need arise. All Directors, Staff and Volunteers of Faughanvale Credit Union Limited sign a Confidentiality Pledge annually ensuring all members' transactions are completely confidential.
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