Credit Union Philosophy

People helping People

The Friendly Societies and Credit Union Act 1982 (section101) says that the objects of a Credit Union are:

• The promotion of thrift by savings
• The use and control of members' savings for their mutual benefit
• The training and education of members in the wise use of money
• At the Credit Union's discretion, and as a minor sideline, the welfare of its members and charitable donations.

The objects are part of the standard rules used by Wine Country Credit Union.

We try to achieve these ends by

• Encouraging members to save
• Lending money which has been saved by members
• Offering budgeting and financial advice to members
• By taking an active role in our community.

As a credit union we provide financial services to members, including: -

• Savings accounts
• Accumulator accounts
• Term shares
• Personal loans
• Vehicle loans
• Mortgages
• Bill payment services
• Telephone account access
• Diamond ATM/Eftpos cards

In order to survive and expand, and provide competitive services to our members, your Credit Union must be able to make a surplus.  A Credit Union makes a surplus if it generates more income than expenditure.  The surplus belongs to the Credit Union members and as well as paying dividends (interest) on member’s savings; we put some of the surplus into special accounts called reserves.

The law requires all Credit Unions to have a common bond.  This means that the members must have some quality in common.  In our case it :a) residents living in the North Island of New Zealand, including persons under 16 years of age; b) Incorporated Societies registered under the Incorporated Societies Act 1908, and their members; and c) Charitable Entities as defined by the Charities Act 2005 and their members.

Credit Unions all over the world share basic operating principles that help define the nature of a Credit Union.

1.      Democratic Structure

• Open and voluntary membership - Membership of a Credit Union is voluntary and open to all within the accepted common bond of association
• Democratic control - Credit Union members enjoy equal rights to vote (one member, one vote) and participate in decisions affecting the Credit Union, without regard to the amount of savings or deposits or the volume of business.
• Non Discrimination - Credit Unions are non-discriminatory in relation to race, nationality, sex, religion and politics

2.      Service To Members

• Credit Union services are directed to improve the economic and social well-being of all members
• To encourage thrift through savings and thus provide loans and other services, a fair rate of interest is paid on savings and deposits, within the capability of the credit union
• A prime concern of the Credit Union is to build the financial strength, including adequate reserves and internal controls that will ensure continued service to membership.

3.      Social Goals

•  On going education - Credit Unions actively promote the education of their members; officers and employees, along with the public in general, in the economic, social, democratic and mutual self help principles of credit unions.
• Cooperation among cooperatives- In keeping with their philosophy and the pooling practices of cooperatives, Credit Unions within their capability actively cooperate with other Credit Unions, cooperatives and their associations at local, national and international levels in order to best serve the interests of their members and their communities.
• Social responsibilities - Continuing the ideals and beliefs of cooperative pioneers, Credit Unions seek to bring about human and social development.  Their vision in social justice extends both to the individual members and to the larger community in which they work and reside.  The Credit Union ideal is to extend service to all who need and can use it.  Every person is either a member or a potential member and appropriately part of the Credit Union Sphere of interest and concern.

One of the most important features of any Credit Union is that it depends on volunteers from its membership.  The Board of Directors always comprises volunteers, but volunteers may also do lots of other work for their Credit Union: helping recruit members, providing special skills or expertise, or providing labour for a special project.