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United Kingdom
In the United Kingdom Credit Unions are regulated by the Financial Services
Authority, or FSA. UK credit unions are classified under two types, type 1 are
the smaller CUs while type 2 are larger. From November 2006 many type 2 CUs will
be offering their members debit card accounts. For the first time this will
enable CU members to obtain funds from any Link ATM. UK CUs will not be offering
cheques as these are generally being phased out for many UK financial
transactions. Many CUs are offering most of the services available from other
financial institutions such as direct debits and standing orders.
Currently there is a government financial initiative mainly being operated by
Credit Unions to bring financial services to the disadvantaged of society. One
aim is to significantly reduce the influence of door step lenders where a £300
loan over 30 weeks involves paying back around £450. A credit union loan would
require paying back around £325.
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