§ Mr. Gordon PrenticeTo ask the Chancellor of the Exchequer what steps he is taking to encourage the establishment and development of credit unions. [101727]
§ Miss Melanie JohnsonTwo reports were published on 16 November which include moves to boost credit unions. The report by the Credit Unions Taskforce, under the chairmanship of Fred Goodwin, investigated ways in which banks and building societies could help credit unions, and the report by the Policy Action Team looked at ways to improve individual access to financial services.
There will be a new central services organisation for credit unions to help them to deliver a more consistent and flexible service to members. Improved regulation by the Financial Services Authority will ensure that credit union members enjoy similar protection to savers in banks 522W and building societies. A number of deregulatory measures, including increasing the maximum repayment periods for loans, removing the maximum membership limit and allowing credit unions to charge for ancillary services will also be implemented.