2013 No. 2589

Credit Unions

The Credit Unions (Maximum Interest Rate on Loans) Order 2013

Made

Laid before Parliament

Coming into force

The Treasury, in exercise of the powers conferred by section 11(5) and (7) of the Credit Unions Act 19791, make the following Order:

Citation and commencement1

This Order may be cited as the Credit Unions (Maximum Interest Rate on Loans) Order 2013 and comes into force on 1st April 2014.

Maximum interest rate2

The rate specified for the purposes of section 11(5) of the Credit Unions Act 1979 is three per cent per month.

Revocation3

This Order revokes the Credit Unions (Maximum Interest Rate on Loans) Order 20062.

Desmond SwayneStephen CrabbTwo of the Lords Commissioners of Her Majesty’s Treasury
EXPLANATORY NOTE

(This note is not part of the Order)

This Order increases the limit on the interest which a credit union may charge on loans made by it under the Credit Unions Act 1979 (c.34) from 2% to 3% per month.

An impact assessment has not been produced for this instrument as no impact on the costs of business or the voluntary sector is foreseen.