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Credit Unions

over here & over there

LEPU Seminar Report:
Progress on LETS & Credit Unions

Jim Dearlove delivered a clear and concise presentation on the framework function and regulations that underpin this most popular of community initiatives. The very best of what came out of this was the reaffirmation that LETSystems are according to Jim acceptable as a "common bond", which is probably the main criteria a group must meet to enable them to set up a credit union.

There are some amendments to regulations about to be passed that could make more of the potential for British credit unions in the future. At the moment maximum investment is set at UKP 5,000 per member, with a maximum loan facility of the same. Business's are not able to participate at present, and the size of the credit union is set at a maximum of 5,000 members. Interest charged on loans made to members is set by law at a maximum of l% that's 12.68 p/a. The maximum dividend that can be paid on savings is approx. 8%.

We look forward to seeing Lets development teams taking up the challenge of uniting with credit union memberships everywhere, there are about 27 c/us in Birmingham alone and the membership nationwide runs into tens of thousands. If Credit Union members were to join or set up LETSystems there will be more cash freed up to invest in the Credit Union, and at the same time more diversity and strength brought to LETS directories.

Sounds like good partnership potential, so what about some kind of forum? Maybe this is an opportunity for local authorities to really get to grips with LETS.

John Winkworth

Canadian Credit Union Initiatives

For many years we have sponsored courses on money management for our members. We have supported SEED Winnipeg, which is a micro-enterprise loan program in its 3rd year of operation. The lending is higher risk, but there is a superb potential for social gains greatly in excess of our private costs (loan administration, bad debts). We began with lending on an individual basis, and are now instituting credit circles as well.

Results thus far:

• Approximately 60 ventures financed, and in each instance the entrepreneur would otherwise have been dependent on social assistance, in all probability.
• We have supported a home buyer's club, in which some inner city resident's sweat equity, combined with concessions from lawyers and real estate agents, made home ownership possible.
• We supported a campaign for an alternative Christmas hamper campaign. In our city there is a Christmas Cheer Board, heavily promoted by the local media, based on a charity model, which buys the goods from the national and multinational supermarket chains. The Alternative campaign supplied the hampers from a worker-owned inner city storefront.

David Leland

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