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 Georgia, as elsewhere, credit unions have evolved into sophisticated financial institutions offering a variety of services to members. Georgia law restricts credit union membership to people who share a “common bond,” such as the same employer, the same union or benevolent association, or some similar connection. The law has detailed and complex requirements for the formation of credit unions (GA Stat. Sec. 7-1-630et seq.). State-chartered credit unions are regulated by the state Department of Banking and Finance.
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.