New Easterhouse Credit Union

Early cooperative activities

The first cooperative was organized in 1844 by a group of workers in Rochdale, England. That same year in Germany, Victor Aime Huber developed some of the early European cooperative theories. The idea of credit societies was a part of this effort. Hermann Schulze-Delitzsch and Friedrich Wilhelm Raiffeisen created the first true credit unions in Germany in 1852 and 1864. In 1849, Raiffeisen founded a credit society in Flammersfeld, but it depended on the charity of wealthy men for its support. In 1864, Raiffeisen organized a new credit union along principles still fundamental today. Germany's credit societies and similar institutions that Luigi Luzzatti founded in Italy were the forerunners of today's large cooperative "banks" in Europe. In 1871, credit union legislation was considered in Massachusetts-- but 19th century attempts to start U.S. credit unions weren't very successful. Re-structure wording (copyrighted) What is a Credit Union ?

A credit union is a cooperative financial institution, owned and controlled by the people who use its services. These people are members. Credit unions serve groups that share something in common, such as where they work, live, or go to church. Credit unions are not-for-profit, and exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates

What makes a credit union different from a bank or savings & loan? Like credit unions, these financial institutions accept deposits and make loans--but unlike credit unions, they are in business to make a profit. Banks and savings & loans are owned by groups of private shareholders whose interests include earning a healthy return on their investments.

History of the Credit Union Movement

As the 20th century began, the credit union idea surfaced in Canada. Canada's successful efforts profoundly influenced two Americans: Pierre Jay, the Massachusetts banking commissioner, and Edward A. Filene, a Boston merchant. The two men helped organize public hearings on credit union legislation in Massachusetts, leading to passage of the first state credit union act in 1909. Growth was slow, however. Fewer than 10 states passed credit union laws, many unworkable. The Massachusetts Credit Union Association grew slowly. Re-structure wording (copyrighted) Seven Cooperative Principles for Credit Unions

1. Voluntary Membership

Credit unions are voluntary, cooperative organizations, offering services to people willing to accept the responsibilities and benefits of membership, without gender, social, racial, political or religious discrimination. Many cooperatives, such as credit unions, operate as not-for-profit institutions with volunteer board of directors. In the case of credit unions, members are drawn from defined fields of membership.

2. Democratic Member Control

Cooperatives are democratic organizations owned and controlled by their members, one member one vote, with equal opportunity for participation in setting policies and making decisions.

3. Members’ Economic Participation

Members are the owners. As such they contribute to, and democratically control, the capital of the cooperative. This benefits members in proportion to the transactions with the cooperative rather than on the capital invested. For credit unions, which typically offer better rates, fees and service than for-profit financial institutions, members recognize benefits in proportion to the extent of their financial transactions and general usage.

4. Autonomy and Independence

Cooperatives are autonomous, self-help organizations controlled by their members. If the cooperative enters into agreements with other organizations or raises capital from external sources, it is done so based on terms that ensure democratic control by the member and maintains the cooperative autonomy.

5. Education, Training and Information

Cooperatives provide education and training for members, elected representatives, managers and employees so they can contribute effectively to the development of the cooperative. Credit unions place particular importance on educational opportunities for their volunteer directors, and financial education for their members and the public, especially the nation’s youth. Credit unions also recognize the importance of ensuring the general public and policy makers are informed about the nature, structure and benefits of cooperatives.

6. Cooperation Among Cooperatives

Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, state, regional, national, and international structures.

7. Concern for Community

While focusing on member needs, cooperatives work for the sustainable development of communities, including people of modest means, through policies developed and accepted by the members. These seven principles are founded in the philosophy of cooperation and its central values of equality, equity and mutual self-help. They express, around the world, the principles of human development and the brotherhood of man through people working together to achieve a better life for themselves and their community.