The Credit Union runs off the interest paid by members with loans and a return on members’ savings which are kept in a high interest savings account.
WE ARE MEMBERS OF THE ASSOCIATION OF BRITISH CREDIT UNIONS LIMITED
WE ARE MEMBERS OF THE ASSOCIATION OF BRITISH CREDIT UNIONS LIMITED
WE ARE AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY & PRUDENTIAL REGULATION AUTHORITY
WE ARE COVERED BY THE FINANCIAL SERVICES COMPENSATION SCHEME
The Credit Union is run by a Board of Directors who are elected by the membership at each Annual General Meeting. The Board Members are volunteers and receive no payment for their involvement.
The board then appoints officers to undertake specific duties (e.g. Chairman, Treasurer etc.)
In addition to this, the Credit Union is run day-to-day by volunteers and employs six members of staff.
Open Tuesday, Wednesday, Thursday from 9.30 to 1.30 and the last Saturday each month from 10am-12pm
The Credit Union runs off the interest paid by members with loans and a return on members’ savings which are kept in a high interest savings account.
Get in touch with the Credit Union as soon as possible. The Credit Union is committed to helping it’s members if they have any financial problems and takes a more understanding view of such problems than many mainstream lenders. We can help schedule your payments to make life easier for you and can refer you to agencies qualified to give financial advice, e.g. your local Citizens Advice Bureau or contact the charity Consumer Credit Counselling Service.
Yes you can, provided you are 50% paid on your current loan. All loan applications are considered individually based on affordability and the level of lending risk to the Credit Union.
As well as an easy-to-use savings scheme and low cost loans, you get free life insurance on your loans and savings with the Credit Union. If you die while owing money to the Credit Union, all your debts will be covered. Your nominated beneficiary will also receive any savings you had with the Credit Union and a matching amount through the insurance scheme.
To start saving, you simply need to complete a membership application Application form and return it to the Credit Union office with confirmation of identification, at least one of which must be a letter with your name and address, dated within the last three months. A one off £2 membership fee is required and a minimum £5 for your Membership Share deposit. Has to be paid in cash.
Withdrawals can be made from our main office in 260 Main Street during our opening times. Please have some sort of identification with you.
Withdrawals will be made by cheque, unless cash is available on the premises. If requested, a letter may be issued allowing cheques to be cashed at the Royal Bank, Main Street Rutherglen.
If you have a loan with the Credit Union, you must leave an equivalent amount in your savings account, but may withdraw any or all of the difference.
You may not make a withdrawal while your account is in arrears.
Yes, members can request a statement when they visit us at 260 Main Street. The statement will have details of your account transactions for up to a year. If you require a statement at any other time, you can contact us to request one.
Credit Unions are regulated like other financial institutions by the Financial Conduct Authority and Prudential Regulation Authority.They are regularly audited and monitored and members savings are protected by the Financial Services Compensation Scheme so savings are as secure as any bank or building society account. A Credit Union is a real sign of hope in a community
In the face of powerful multinationals and increased globalisation people feel isolated and less in control of their lives. Credit Unions are a positive response to claiming back control and rebuilding local communities.Credit Unions give you control of your finances.
A Credit Union is a financial co-operative that is owned and controlled by its members. Credit Unions offer a variety of financial services; providing a safe and convenient place to save your money, accessible loans at a very reasonable rate of interest and a variety of other financial services. As such, Credit Unions have the potential to offer a much more accessible, efficient and cost-effective financial service than either banks or other financial institutions.
Credit Unions are not-for-profit organisations and are driven by an ethos of service to its members, rather than maximising profit. They are also an ethical way to bank, as they provide social benefits, renew a sense of community identity and retain wealth within the local area.
Credit unions in the United Kingdom have a long history. Identical or similar institutions to the present-day credit union were known as mutual societies within the United Kingdom.
Institutions known as mutual societies grew out of the friendly society movement of the 18th century, with the first mutual insurer, Equitable Life, being founded in 1762. The emergence of mutual assurance was linked with the Industrial Revolution and the need to provide for impoverished workers beyond the outmoded Elizabethan Poor Laws, as people congregated in the cities and lived in conditions of squalor and poverty. The principle of mutuality goes back to this epoch, when the sophisticated financial institutions taken for granted today, did not exist.
The only method of improving the quality of ordinary people’s lives was through the development of co-operative and mutual societies, as formalised under the Friendly Societies Act 1819. Mutual institutions thus predated the welfare state and were formed to meet the needs of a burgeoning working class, consisting mainly of rural and immigrant workers. As a practical expression, this communitarian self-help movement allowed small regular individual contributions to be pooled for mutual collective benefit, obtaining the same economies of scope and scale necessary in providing collective insurance and banking products, to mitigate enduring social exclusion. Initially funding was required for housing, consumer durables and emergency insurance provision, at a time when commercial banks were still exclusively commercial lenders.
Building societies were formed as small temporary societies by worker co-operatives, pooling resources to build local houses and subsequently allocating them among members by drawing lots. Once all members were housed, these organisations were typically wound up, although some became permanent societies in an effort to promote wider home ownership, as exemplified by the Leeds Permanent Building Society. Surplus funds were then pooled, providing an opportunity for low-income families to earn interest on small deposits, with proceeds typically invested in residential mortgages and liquid government securities.
The traditional intermediation function of mutual societies was to promote thrift among the working classes and thereby provide access to low cost home loans. This ethos has become obscured in the recent battle for customers, and only the very real threat of extinction has occasioned any renewed vigour in proclaiming the original mutuality message. Mutual societies continue to perform vital social functions, often serving on the boards of local community groups, as well as regularly making sizeable local charitable donations. Indeed, the mutual legacy of social benefaction, although quite substantial, risks only being missed by the present generation once such institutions ultimately cease to exist. With the conversion of most of the larger remaining mutual societies into proprietary companies, the bulk of the UK savings assets will have shifted away from their traditional providers into the mainstream UK financial sector. This change is occurring even as the traditional barriers between banks, building societies and insurance companies are disappearing. The spate of conversions is leading to a polarisation into two camps: the converters and the remaining mutuals.
Credit unions in the United Kingdom are now regulated by the Financial Conduct Authority and the Prudential Regulation Authority. They are classified in two types: type 1 is the smaller credit union while type 2 is larger. From November 2006 many type 2 credit unions began offering their members debit card accounts so that they could withdraw cash from any Link ATM.
In October 2008 the Financial Services Compensation Scheme guaranteed the first £50,000 of each saver’s deposits in credit unions, in line with the guarantee for UK banks and building societies.
Credit unions in the UK now offer a wide range of services to their members; from direct debits to payroll deductions, from being able to send standing orders from their accounts to paying members bills to providing cheaper insurance facilities. Life insurance is usually included with membership (subject to pre-existing medical conditions and other exclusions). Death benefits vary between unions, but commonly include lump sum payments, writing off of outstanding loans and doubling of savings.
Credit unions offer savers considerably more protection than commercial “savings clubs”, as was demonstrated by the 2006 collapse of the Christmas hamper club Farepak.
In June 2008, the Treasury announced plans to encourage the growth of credit unions by broadening the common bond and removing outdated restrictions. The changes are intended to significantly reduce the influence of door step lenders and loan sharks.
Loan Guidelines Age Members must be aged 18 or over to apply for a loan.
Saving Period Members must have saved regularly for 8 – 10 weeks with evidence of regular weekly, fortnightly or monthly savings.
Secure Loans will be granted (secure is equal to or less than the number of shares held.)
First Loan will be up to twice the number of shares saved to a maximum loan of £500 or a risk value of £200.
Payments to first loan must be fully repaid according to the signed agreement before the second loan can be applied for.
Credit Control problems with a First loan could affect future borrowing.
Second loans are up to twice the number of shares up to a maximum of £1000 or a risk value of £300. Members with a good repayment record will therefore be looked on favourably for further larger Loans, based on their shares and their ability to make repayments. These larger loans will be at the sole discretion of the Board of Directors.
Repayment period for all unsecured loans is a maximum of 3 years. Secure loans can be repaid over 10 years.
Credit Control Problems Any member who experiences problems with their repayment plan should contact the Credit Control committee immediately. Failure to do so will mean that subsequent loans will be restricted or only Secure loans will be available.
Share loading Payments of large sums to Shares immediately prior to applying for a loan (i.e. share-loading) may be discounted for a period of 4 weeks at the sole discretion of the Credit Committee. Until this period has elapsed, any application for a loan will be based on the Balance held before the increased shareholding.
Refinancing Second or subsequent loans may be topped-up after 50% of the original balance is paid. The top-up is then added to the existing loan and the new repayment calculated. The number of times a loan can be topped up before it is finally paid off is at the sole discretion of the Credit Committee
Share deposits All loan repayments must be accompanied by regular deposits to Shares. Failure to save during a loan period can lead to future loan restrictions since the availability of money for loans depends on the continued saving of shares by members. Withdrawals of Shares are not permitted when the loan balance is greater than the Share balance.
Loan uplift must be done by the applicant and will be paid by cheque after the signing of the required Loan Agreement. Suitable proof of identity must be shown. The cashing of cheques at any collection point is not guaranteed and is at the discretion of the Treasury Team, subject to the availability of cash. Cash is available at our bank the Royal Bank of Scotland, Cambuslang if the member requests it.
Confidentiality The discussion and details of the Loan applications are strictly confidential.
The Board of Directors reserves the right to amend this policy at any time without prior notice.
These guidelines were adopted by the Board of Directors on 21 February 2011
Cambuslang Credit Union Limited – Registered with the FCA & PRA Ref No – 213778
Signup to our newsletter today and find out more about our savings, loans and insurance