Tue | Sep 26, 2017

QUESTION CORNER

Published:Thursday | April 2, 2015 | 4:00 AM

If you have questions about credit unions or your credit union, we will answer them for you on this page.

Send your questions to the Jamaica Co-operative Credit Union League by email at support@jccul.com

Here are some of your questions.

Q What are the requirements for membership in a credit union?

A The applicant must fall within the common bond of association of the credit union. The bond of association may be where the persons reside, work or their profession, place of work or a group such as a church to which they belong.

Q Why do we need credit unions when there are other financial institutions?

A Other financial institutions and credit unions are not in conflict with each other. They all deal with savings and credit, but they have different objectives. Credit unions are not-for-profit organisations focussed on service to members. Other financial institutions must satisfy their shareholders. Credit unions serve only their members and the members together own the credit union and help to make it successful.

Q What services

does a credit union provide?

A A credit union provides its members with a range of financial services. However, the primary services still remain as follows:

• A system for developing thrift and accumulated savings by encouraging its members to save convenient amounts regularly.

• A source of credit by providing its members with loans at competitive rates of interest when they are in need of money for provident and productive purposes.

• Education in the management and control of money through financial counselling programmes

• Life insurance protection on loans and savings.

With advances in technology and the needs of members changing, credit unions can do considerably more in terms of service delivery than was previously required by members.

Q May a member withdraw savings at will?

A Yes. A member may withdraw his savings on any day the credit union is open for business or he may use his Access Plus debit card to do so. However, no member may withdraw shares if he owes the credit union money or is the guarantor/co-maker of any loan in excess of his savings.