FREQUENTLY ASKED QUESTIONS

Consumers frequently ask the following questions. Answers are provided for general information purposes only, and should not be construed as formal legal advice provided by the Division of Financial Institutions. You should always consult with your own attorney regarding your legal rights in any given situation.

General

Banks And Trusts

Consumer Finance

Credit Unions

Savings And Loans / Savings Banks

General

Banks And Trusts

Consumer Finance

Credit Unions

  • Q.  What is a credit union?
  • A.   A credit union is a nonprofit cooperative financial institution organized and operated for the mutual benefit of its members. The members are the owners of the institution. The membership of a credit union is limited to groups having a common bond of occupation or association or to groups within a well-defined neighborhood, community, or rural district. A person cannot become a member of a credit union unless he or shee belongs to a group that is within a credit union's field of membership. The field of membership is specified in a credit union's charter or articles of incorporation. Because credit unions are nonprofit cooperatives, they are exempt from from payment of federal and state income taxes.

  • Q.  What is a "corporate" credit union?
  • A.   A corporate credit union is a credit union whose field of membership consists of other credit unions. A corporate credit union provides services to credit unions. There is one corporate credit union in Ohio called Corporate One Credit Union.

  • Q.  What is the maximum rate of interest my credit union can charge me for a loan?
  • A.   The Ohio Credit Union Act permits state-chartered credit unions to charge a rate not to exceed a twenty-five percent annual percentage rate.

  • Q.  How does a person join a credit union?
  • A.   A person can join a credit union if he or she is a member of a group that is eligible to join a credit union. A person must also meet other membershiop requirements of a credit union including the purchase of a qualifying membership share. The Ohio Credit Union League is a good source of information about credit unions and what fields of membership they serve.

Savings And Loans / Savings Banks

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