The Government hopes that the financial industry will respond positively and constructively to these discussions. The FSA will also establish a taskforce which will work closely with the sector to ensure a smooth transition. Then, all credit unions which satisfy the FSA's criteria will enjoy the longer repayment periods to be introduced in the meantime for those with a Section 11C certificate. Members save with a credit union by depositing money in the form of non-transferable withdrawable shares. Most credit unions are largely run by unpaid volunteers, providing basic savings and loan services.
Loans are repayable over two years if unsecured, and over five if secured.
There are over 600 registered credit unions, with new registrations averaging around 50 a year. Membership is around 220,000.