NZACU Delighted by Law Change

July 2014

Henry Lynch, CEO of New Zealand Association of Credit Unions (NZACU), has said he is delighted with Commerce Minister Craig Foss’ announcement regarding incoming law changes that will help their members compete with the big banks.

The member owned credit unions and building societies have spent years campaigning for a raft of changes to make it easier to do business.

Amendments to the Friendly Societies and Credit Unions Act 1982 will give credit unions legal status and reduce unnecessary operating and compliance costs.

The main change gives credit unions legal status as bodies corporate, meaning they can have limited liability, own property, have perpetual succession and sue and be sued in their own name.

They will also be able to lend to small and medium sized businesses, avoiding the clumsy current workaround which involves lending to a member, who then on lends to the business.

Credit unions and building societies have a long history in New Zealand, with more than 200,000 members between them.