There are so many reasons why you should choose a credit union over a publicly-listed bank.
The most important reason for choosing a credit union is they are customer owned, meaning they put their customers first.
What does that mean? Simply, the mutual structure means that credit unions are not publicly-listed companies and so, unlike the publicly-listed banks, don’t have the pressure to maximise profits to pay external shareholders.
Credit unions exist for their members: being customer owned organisations, they are fully owned by their members.
Credit unions are regulated in exactly the same way as publicly-listed banks, because they are all Authorised Deposit-taking Institutions (ADIs). This means all credit unions, mutual banks, building societies and banks are regulated in the same way and meet the same strict, legally-enforceable standards, under the Banking Act and strict oversight by the Australian Prudential Regulation Authority (APRA). APRA’s strict rules on safety and capital continue to apply to all banks, building societies and credit unions to the same high standards.
Equally credit unions, mutual banks, building societies and banks have the Government guarantee on deposits – so your money is backed by the Australian Government.
Deposits of up to $250,000 with credit unions, building societies and mutual banks are covered by the permanent Government guarantee.
If you’re a member of a customer owned banking institution, you become an owner of that organisation.
Our customers are our owners, so we focus on what’s best for them – not share price movements. As customer owned institutions, we are not under pressure to take risks to maximise record returns for shareholders. We put your interests first.
Credit Unions due to their size are able to provide more specialised services tailored to the needs of their members, as well as a more personalised service while being committed to helping members improve their financial situation.
Credit unions are committed to social responsibility, environmental sustainability, and financial literacy.
Credit unions are prudent and responsible lenders who provide ethical banking – they do not write loans that can’t be paid back or will over-stretch their members.
Credit Unions already work with members with financial difficulties with a range of support measures as outlined in the Government’s recent hardship provisions. Just as importantly, credit unions make sure that they lend responsibly in the first place.
Credit Unions are wholly committed to ethical and responsible lending practices that support both their members and their members’ communities.
- Not for Profit Groups/Organisations
We have a dispute resolution system to deal with any complaints you may have in relation to the MCU Ltd Account and Access Facility or transactions on the account. Our dispute resolution policy requires us to deal with any complaint efficiently, speedily and sympathetically. If you are not satisfied with the way in which we resolve your complaint, or if we do not respond speedily, you may refer the complaint to our external dispute resolution centre. If you want to make a complaint, contact our staff at any branch and tell them that you want to make a complaint. Our staff have a duty to deal with your complaint under our dispute resolution policy. Our staff must also advise you about our complaint handling process and the timetable for handling your complaint. We also have an easy to read guide to our dispute resolution system available to you on request.
The Financial Claims Scheme (FCS) is an Australian Government scheme that provides protection and quick access to deposits in banks, building societies and credit unions in the unlikely event that one of these financial institutions fails.
Under the FCS, certain deposits are protected up to a limit of $250,000 for each account holder at any bank, building society, credit union or other authorised deposit-taking institution (ADI) that is incorporated in Australia and authorised by the Australian Prudential Regulation Authority (APRA).
The FCS can only come into effect if it is activated by the Australian Government when an institution fails. Once activated, the FCS will be administered by the Australian Prudential Regulation Authority (APRA). In an FCS scenario, APRA would aim to pay the majority of customers their protected deposits under the Scheme within seven calendar days.
The FCS limit of $250,000 applies to the sum of an account holder’s deposits under the one banking license.
Therefore, all deposits held by an account holder with a single banking institution must be added together towards the $250,000 FCS limit, and this includes accounts with any other banking businesses that the licenced banking institution may operate under a different trading name.
Information on the FCS is available on the FCS website – www.fcs.gov.au.