A credit union is a member-owned financial institution organized to encourage savings and to provide loans with competitively low interest rates to members. In Colorado, as elsewhere, credit unions have evolved into sophisticated financial institutions offering a variety of services to members. Under Colorado law, any group of eight or more persons may form a credit union (CO Stat. Sec. 11-30-101et seq.). There is a legal requirement that the group have some “common bond,” but that bond does not have to be employment related. The law has detailed and complex requirements for the formation of credit unions and for their regulation by the state Department of Regulatory Agencies.
Because of the complexity of the laws on credit unions, an organization seeking to set one up needs expert assistance. Serious consideration should be given to joining an existing credit union before deciding to start a new one.