FREQUENTLY ASKED QUESTIONS
WHAT IS A CREDIT UNION?
A financial co-operative equally owned and controlled by its members.
WHAT ARE ITS FUNCTIONS?
1. To provide an easy saving facility for members by way of £1 shares paid through wage deduction, these attract an annual Dividend as shown under “Savings” on the website.
2. To provide the opportunity for members to apply for lending at very reasonable rates ( based on their regular savings) at a maximum of 12.5% APR on the reducing balance, that is 6.5% flat rate which means £1,000 borrowed would cost under £65 over a complete year. This is a highly competitive rate and remember free life insurance is included on all loans.
3. If requested, free advice and assistance on all aspects of family budgeting, inclusive of negotiation with others.
WILL MAXIMUM LENDING RATES INCREASE?
Although rates are reviewed periodically, our maximum lending rate has never increased since 1981.
HIDDEN CHARGES?
"What you see is what you get" No hidden costs - No setting up charges- No early re-payment charges.
WHERE DO THE PROFITS GO?
All net surpluses are returned to members through their dividend and other services provided.
ARE THERE MANY CREDIT UNIONS ?
There are over 400 Credit Unions in Gt Britain affiliated to the “Association of British Credit Unions” and 47,000 Credit Unions in 97 countries with 184 Million members.
Worldwide = 8% of population, US = 30% of population and in Ireland = 50% of population are Credit Union members.
WHO REGULATES CREDIT UNIONS?
The Financial Services Authority ensures that Credit Union’s democratically elected Board of Directors operate within the "Credit Union Act". We are required to provide quarterly financial returns over and above the regulatory internal and external Auditing requirements, and of course, the members are the owners and we report to members at their A.G.M. on the third Tuesday of every January.
CAN I PROTECT MY FAMILY BY PAYING FOR LIFE INSURANCE OR SICKNESS INSURANCE ON MY LOAN?
The life insurance cover on loans up to age 70 is paid for by the Credit Union and there is also a free life insurance up to age 65 on your shares- in a successful claim, the Credit Union insurance will match your savings pound for pound up to a maximum as set by the Board from time to time and currently stands at £10,000. In both cases you only need satisfy the insurance questions.
WHO CAN JOIN?
PERSONS EMPLOYED IN THE PASSENGER TRANSPORT INDUSTRY IN GREAT BRITAIN, ARE ELIGIBLE TO APPLY FOR MEMBERSHIP. IN ADDITION, DUE TO EMPLOYER’S GOODWILL IN PROVIDING FREE PAYROLL DEDUCTION FACILITY, THE £10 PER YEAR MEMBERSHIP FEE IS NOT CHARGED, SO LONG AS YOU SAVE AT LEAST £1 PER YEAR.
DOES MY COMPANY PROVIDE FACILITIES FOR ME TO BECOME A MEMBER?
MANY COMPANIES NOW RECOGNISE THE BENEFITS OF PROVIDING PROVISION FOR CREDIT UNION MEMBERSHIP. CLICK HERE TO SEE EMPLOYER LIST.
Registered: 1981 under the Friendly Societies Act 1979