More protection for NI credit unions
Members of Northern Ireland’s credit unions will be given increased protection, under new proposed legislation, bringing them in line with other unions in Great Britain.
The Financial Services Authority said the regulation of 177 credit unions will pass from the Department of Enterprise, Trade and Investment at Stormont to the FSA.
It said the changes will significantly enhance consumer protection as only some, but not all, credit unions are curr
ently covered by voluntary protection schemes.
Under the increased protection, from March 2012, savers will benefit from the FSA's compensation scheme which means savings are underwritten to the tune of £85,000.
Martin Stewart, the FSA's head of building societies and credit unions, said: "This will finally bring Northern Ireland's credit unions in line with other credit unions in Great Britain and will result in beneficial changes for these credit unions and their members."
Northern Ireland's consumer watchdog has welcomed the proposals.
Joleen Cunningham, senior consumer affairs officer at the Consumer Council, said: "Today's announcement acknowledges the invaluable role that credit unions have been playing in Northern Ireland for decades in supporting and providing affordable credit and savings for consumers."
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