FAQ's on Credit Unions
Ever heard of Credit Unions? No? Well that's no surprise, neither
have over 90% of people. So, what are they?
A Credit Union is an
organisation where members save together providing a pool of money from which
loans are drawn at very competitive rates.
Just look at some
• Low interest
• Regular and affordable
• Free life insurance
Here are some answers for most of the more common questions.
What's the background?
The philosophy behind Credit
Unions is that by working together people can achieve far more than by
individual effort. It is based on co-operative values.
The modern Credit
Union movement traces it's origins back to parts of Europe and in the early
1900s saw it's development in Canada and the United States where they have
become established in every area of North American life
The total Credit
Union membership in the UK is well over 200,000 in over six hundred different
groups. Each Credit union is separate and completely in control of its own
Who can join?
Anyone who lives within the
Deptford, New Cross and Brockley areas is eligible to join. We will also be
starting Junior Saver accounts.
Will my money be
Savings are insured against fraud at no cost to the
Loans are covered by Life Insurance.
Who owns the Credit Union?
The Credit Union will be owned
and run by the members, for the members.
Credit Unions purely for lower interest loans?
the Credit Union is established it can pay dividends on savings as high as 8%.
Volunteers who help run the Credit Union will be given full training and can
How do I save and borrow?
savings are collected either at collection points or directly from your bank by
standing order. To obtain a loan, a loan application form must be completed and
returned to the Credit Union collection points. The Credit Committee will check
your details and possibly interview you about the loan. If the loan has been
approved, you will be asked to complete a loan agreement form, then a cheque is
issued. The loan repayments are made in the same way that you
Note: Savings must continue whilst a loan is being repaid
but can be reduced if necessary.
There is no penalty should a member decide
to withdraw part or all of their saving, provided there are no outstanding
balances on the loan account.
LOTTERY SUCCESS FOR THE CREDIT UNION
Deptford & New Cross Credit Union have received some fantastic news. We have been successful in bidding for a Big Lottery Fund. The Credit Union had been waiting quite some time to hear whether our application would pass all the hurdles but we got a call, followed by an official letter telling us that we had crossed all the right T’s and dotted the I’s and £65,300 over three years is ours. The other part of the good news is that we can use the money to match funds from the NDC giving us a total of £123,600. Whoo hoo!
So what does it mean?
According to Maria our Credit Union manager, “We are particularly pleased as it means our status as an Independent Credit Union is safe. We can continue offering the community with choice and keep money within our community. It’s been a real team effort and everyone concerned deserves some praise.”
Specifically we are now able to have the overheads of the Credit Union covered as well as the general running costs. New staff can be employed that will enable us to improve and expand the services on offer to the community.
Maria continued, ”we are here to help people manage their financial affairs, to help them get somewhere in life.”