TL;DR
Fake credit union scams present as legitimate member-owned financial cooperatives offering savings accounts or loans. Genuine UK credit unions must be authorised by both the FCA and the Prudential Regulation Authority. If a credit union is not on both registers, it is not legitimate. Never deposit money with an online-only credit union without checking both registers.
Warning date: FCA, PRA, GOV.UK | Source: FCA Warning List | Verify at fca.org.uk before relying on this page
What is a genuine credit union?
A credit union is a member-owned financial cooperative that provides savings accounts and loans to its members. In the UK, credit unions must be authorised by both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). They are subject to the same regulatory oversight as banks and building societies. Genuine credit unions appear on the FCA register at register.fca.org.uk with a firm type of "Credit Union."
UK credit unions are covered by the FSCS for deposits up to £85,000 per person. They are typically community-based, serving members with a common bond such as living in the same area or working for the same employer.
How fake credit union scams work
Fraudulent credit unions operate online-only platforms offering attractive savings rates or easy-access loans. They use professional websites with member portals, fake testimonials and sometimes copy the branding or name of a genuine credit union. Victims deposit money expecting to earn interest or receive a loan, but the funds are stolen and the "credit union" becomes unreachable.
Recent FCA-warned fake credit union operations include www.ubtcreditunion.com and AGCunion (America Gateway Credit Union), both added to the FCA Warning List in June 2026. Neither is authorised by the FCA or PRA.
How to verify a credit union is genuine
Search register.fca.org.uk for the credit union's name. Genuine UK credit unions show as "Credit Union" in the firm type field and will also appear on the PRA register. Check that the firm is currently authorised — not cancelled or suspended. Verify contact details on the register match those provided by the credit union. If you cannot find the credit union on both registers, do not deposit money.
Genuine vs Fake Credit Union: How to Tell the Difference
| Factor | Genuine Credit Union | Fake Credit Union |
|---|---|---|
| FCA registration | On FCA register as 'Credit Union' | Not on register or different firm type |
| PRA registration | On PRA register | Not on PRA register |
| Common bond | Serves specific community or employer group | Open to anyone online |
| FSCS protected | Yes — up to £85,000 | No protection |
| Savings rates | Modest — capped at 3% dividend | Unusually high returns promised |
| Loan eligibility | Must be a member first | Loan offered immediately without membership |
| Physical presence | Local offices or established UK address | Online only, no verifiable UK address |
Source: FCA, PRA, ABCUL. Always verify on both registers before depositing.
What to do if you have deposited money with a fake credit union
Contact your bank immediately to attempt to recall any transfer. Report to Action Fraud on 0300 123 2040 and to the FCA at fca.org.uk/consumers/report-scam. Under the mandatory APP fraud reimbursement rules, if you transferred money on or after 7 October 2023, your bank may be required to reimburse you.
|
Are you associated with this firm? If the FCA has removed this warning from its Warning List, or if you believe this article contains an error, contact us at support@kaeltripton.com with a link to the current FCA register entry or confirmation of removal. We will update or remove this article within 5 working days of receiving verified evidence. We do not remove articles on request alone — FCA confirmation is required. |
|
Disclaimer This article is based on the FCA Warning List as of June 2026. It is for information only. The FCA Warning List at fca.org.uk/consumers/warning-list is the authoritative and current source. Always verify directly with the FCA before acting on this information. Kael Tripton Ltd is an independent editorial publisher and is not regulated by the FCA. |
Frequently asked questions
How do I find a genuine UK credit union?
The Association of British Credit Unions (ABCUL) lists genuine credit unions at abcul.org. You can also search the FCA register at register.fca.org.uk filtering by firm type 'Credit Union'. Your employer, local council or trade union may also have an affiliated credit union.
Are savings in a genuine credit union protected?
Yes. Genuine FCA and PRA authorised credit unions are covered by the FSCS for deposits up to £85,000 per person. This is the same protection as a bank or building society. Fake credit unions have no FSCS protection.
What savings rate can a genuine credit union offer?
UK credit unions are legally restricted in the dividend (interest) they can pay on savings — currently capped at 3 percent per year. Any "credit union" offering savings rates significantly above 3 percent is almost certainly fraudulent.
I received a loan offer from a credit union I hadn't heard of — is it legitimate?
Verify on the FCA register before proceeding. Fraudulent operations sometimes offer loans as a hook — particularly targeting people with poor credit who have been refused by mainstream lenders. Any loan offer requiring an upfront fee before receiving the loan is fraud.
How do I report a fake credit union?
Report to Action Fraud at actionfraud.police.uk or 0300 123 2040. Report to the FCA at fca.org.uk/consumers/report-scam. Contact us at support@kaeltripton.com if you believe a warning article on this site needs updating.
|
Sources
FCA Warning List |
