The first credit union in the United States was founded in 1909. by the group of Franco-American Catholics in Manchester, New Hampshire, and was called "Cooperative Credit Association of St. Mary. " Principles of cooperative democracy and interaction were adequate to the purposes for which people joined credit unions. First Credit Union was savings unprofitable institution, or rather credit cooperative, providing services to its members. To reduce the risk of default on loans members of the credit union shall the joint guarantee. Consumer loan and reliable savings - these are the main goals, which mean "natural persons" having decided to unite in credit consumer cooperative. The relationship between credit unions and shareholders arise from the membership and are not customer relationship. On the consumer credit market in the U.S. credit unions are on the third place after the commercial banks and finance companies and are ahead of savings institutions, not taking into account the loans on real estate.
Credit Union Location in West Virginia
First Credit Union was savings unprofitable institution, or rather credit cooperative, providing services to its members. To reduce the risk of default on loans members of the credit union shall the joint guarantee. Principles of cooperative democracy and interaction were adequate to the purposes for which people joined credit unions.
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The first credit union in the United States was founded in 1909. by the group of Franco-American Catholics in Manchester, New Hampshire, and was called "Cooperative Credit Association of St. Mary. " Credit unions encourage savings of citizens, setting compensation payments (interest) on savings and provide from these savings loans to their members. Credit unions also differ from the traditional consumer cooperatives. Income received by the credit union shall be distributed among the shareholders or spent for the depreciation of services, that is, are the most effective means of meeting the needs of shareholders. Until the 70's there was a proliferation of the U.S. credit unions due to the increase of their number and the number of shareholders, although it must be acknowledged that there was also and a qualitative growth. The relationship of shareholders with credit union are not client-based, they are co-operative, based on different principles and standards, in particular, on the principles of the law of obligations. 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).