Most modern credit unions represent specialized consumer cooperatives of citizens associated by the principle of social community: place of work, place of residence, profession, or any other shared interest. Borrowing rate for the credit union is a source of income to cover the administrative costs. All excess funds are returned to members in the form of dividends on savings. Credit unions of the open type are still controlled by their members, but at the same time provide services to people who are not its members (external customers). Historically, credit unions have grown from the experience of credit cooperatives, but they took the experience of organizations of mutual aid of citizens by moving methods of social self-protection from labor and toward consumption. In the UK, credit unions are a source of financing of people groups. This tool is not widely used. Standards by which credit unions build their work do not coincide with the standards and regulations of consumer cooperation of the usual type. The right to use the services of the credit union have only its members.
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Credit unions of the open type are still controlled by their members, but at the same time provide services to people who are not its members (external customers). Historically, credit unions have grown from the experience of credit cooperatives, but they took the experience of organizations of mutual aid of citizens by moving methods of social self-protection from labor and toward consumption. Borrowing rate for the credit union is a source of income to cover the administrative costs. All excess funds are returned to members in the form of dividends on savings.
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National Credit Union Administration (NCUA) - an independent federal agency, based in Washington (State of Columbia), established by the U.S. Congress to oversee the federal credit union system. To date, credit unions - virtually the only form of financial institution where people can quickly and without any problems get a relatively inexpensive cash loan. First central bank of credit unions appeared in 1876. Credit unions began to appear rapidly in many European countries. The relationship between credit unions and shareholders arise from the membership and are not customer relationship. U.S. credit unions have another significant difference from the credit cooperatives of farmers: the first have major proportion of short-term loans, the second - long and mostly in real estate. To increase the number of credit unions in 1979 was adopted the corresponding law that serves as the legal basis of their activity. A potential new member of a credit union must submit a recommendation of shareholders in which the referee becomes a warrant of a future member of the credit union.