General...
How does Ellesmere Port & Neston Credit Union work?
How safe is it?
Do I have to use a Collection Point to open and run my account?
Questions about Joining...
Where can I join?
What do I need to do to be able to join?
Questions about Savings...
Are there any limits on saving?
Do I have to save regularly?
Where can I save?
What is the interest rate?
What happens if I die?
How do I get my savings out?
How much can I take out?
How long will it take to get my money?
How will I get my money?
Questions about Loans...
Can I apply for a loan?
How much can I borrow?
How much will it cost me?
How do I apply for a loan?
How long will the decision take?
What is the decision based on?
How will I get my money?
When will I get my money?
How much do I have to repay and how often?
What happens if I can’t afford a repayment?
What happens if I miss or forget to make a repayment?
Do I have to add savings at the same time as repaying my loan?
What happens if I die?
How safe is the Credit Union?
Credit Union’s are regulated by the Financial Services Authority (FSA). These are the same people who regulate the banks and building societies. Credit Union’s have to report their performance to the FSA every 3 months. This is one of the ways the FSA monitors the Credit Union. The FSA can also come and visit Credit Unions to see how they are operating.
All savings in a Credit Union are covered by the Financial Services Compensation Scheme (FSCS) in exactly the same way as the banks and building societies.
Credit Unions are run largely by volunteers. All volunteers have to be fully trained and abide by the confidentiality agreement they will sign when they start volunteering, and also by the Data Protection Act. The FSA check that volunteers and staff who can influence the way the Credit Union is run are ‘Fit and Proper’ to undertake that role. The FSA also require us to keep and meet training plans for all our volunteers to ensure that they know what they are doing.
The Credit Union is audited each year by a registered independent auditor. Throughout the year, internal audits and spot checks are done by the supervisory committee to ensure that the credit union is being run in the best interests of its members.
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Do I have to use a Collection Point to open and run my account?
No.
You can pay in and/or repay a loan
- by standing order direct from your bank
- by cheque posted to the office (payable to Ellesmere port & Neston Credit Union and with your name and membership number on the back)
- by PayPoint card at any Post Office or many local shops (subject to a minimum amount)
- by payroll deduction (if you work for a participating employer)
You can also
- apply for a loan
- apply for an additional account
- apply for an account for another family member
- ask to withdraw money from your account
by sending in written instructions to the office, or asking us to send you the appropriate form.
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Where can I join?
You can join at any collection point.
Collection points are held weekly (except Bank Holidays) at the following times and locations.
Ellesmere Port |
Neston |
Ellesmere Port Library
1st & 3rd Mondays in month
5.15pm - 6.15pm
Links Healthy Living Centre
(next to Civic Hall)
12.00 noon - 2.00pm
Every Tuesday
Stanlaw Abbey Children's Centre
1st Monday in month
11.30am - 1.30pm
|
Neston Library
Every Friday
10.00 - 12.00 noon
|
If you can't make any of these sessions, it is possible to join by post. For more information on what we need to be able to do this please contact the office on 0151 355 7430.
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What do I need to do to be able to join?
You will need to bring along proof of your identity and proof of your address. Below are some examples of proof we will accept. If you do not have any of these, please contact us, tell us about yourself and we will see how else you can meet the regulations about joining a credit union.
Example Proof of Identity |
Example Proof of Address |
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Valid Passport
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Valid Drivers Licence
-
Current Inland Revenue Tax Coding Notice
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Notice of Pension or Benefit
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Photo ID card from a recognised employer
|
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Recent Council Tax Bill
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Recent Utility Bill
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Recent Bank or Building Society Statement/Passbook
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Recent Mail Order Statement
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Recent Tenancy Agreement
-
Recent Local Council Rent Card
|
If you do not live in the Borough of Ellesmere Port and Neston, you will have to also provide proof that you work, study or volunteer in the Borough.
This could be a payslip with your employers name; an identity pass from the employer; written confirmation that you work, study, or volunteer for the organisation.
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Are there any limits on saving?
To keep your account open you must have at least £1 in your account and the most you will be able to save is £5000
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Do I have to save regularly?
We would like you to save regularly. If you can’t afford your usual level of saving, just pay in what you can. If you want to pay more this is also OK. Saving even small amounts regularly, soon adds up.
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Where can I save?
If you are saving by cash or cheque you can do this at any of these collection points.
Ellesmere Port |
Neston |
Ellesmere Port Library
1st & 3rd Mondays in month
5.15pm - 6.15pm
Links Healthy Living Centre
(next to Civic Hall)
12.00 noon - 2.00pm
Every Tuesday
Stanlaw Abbey Children's Centre
1st Monday in month
11.30am - 1.30pm
|
Neston Library
Every Friday
10.00 - 12.00 noon
|
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What is the interest rate?
Members do not get interest on their savings, instead they get dividends. The amount of the dividend depends on the amount of surplus that the credit union has made. In the beginning the dividend rate will be very low and may even be zero.
Junior savers receive interest which is paid once each year. The interest rate is likely to be 1.5% below the Bank of England Base Rate. When we are open you will be able to contact the office for information on the current interest rate for junior savers.
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What happens if I die?
We hope you don’t die. If you do, subject to some age and health restrictions we provide free life insurance. This means as well as getting your savings the insurance will also pay out an amount equal to your savings. These two amounts less any outstanding loans will be paid to your estate on your death.
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How do I get my savings out?
Fill in form E the Share Withdrawal Form, which is available from collection points or from the office. When the form is completed, it should be handed in at a collection point, or posted to the office.
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How much can I take out?
How much you can take out depends on how much you have saved and if you have any outstanding loans. You must leave at least £1 in your account at all times, or we will have to close your account.
If you have an outstanding loan, you must leave in your account at least one third the outstanding balance of the loan.
If you are behind on your loan repayments you may not be able to take out any money. If this happens to you, come and talk to us and we will see how we can help.
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How long will it take to get my money?
If you are withdrawing less than £50, are applying for the share withdrawal at a collection point, and you have your membership card with you, payment will take up to 4 working days.
To reduce fraud, for larger amounts, or if you do not have your membership card with you, payment should take less than 10 working days (including time in the post, or time transferring money if you choose payment by direct bank transfer).
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How will I get my money?
Withdrawal requests are normally dealt with the day they are received in the office.
How long it takes to receive your money depends on the method you choose to receive it.
| Method of receiving money |
Normal timescale |
Cheque payable to you |
Posted by 1st class post within 2 working days |
Cheque payable to someone else |
Transfer direct to your bank account |
Leaves our bank account within 3 working days |
Cheque made out to cash (cashed free at our nominated banks) |
Available from your chosen Collection Point at the next opening time after 2 working days (or at the office by appointment) |
For security reasons you will never be paid by cash.
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Can I apply for a loan?
If you are aged 18 or over and have saved regularly with the credit union for at least 12 weeks you can apply for a loan.
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How much can I borrow?
You can apply to borrow up to 3 times the amount you have saved up to a limit of £5000.
If you already have a loan the total of all your outstanding loans must be less than 3 times the amount you have saved
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How much will it cost me?
The interest rate on loans 1% per month on the reducing balance of the loan (12.68% APR). (Interest is calculated on the balance outstanding at the end of each month) See the table below for likely repayments for loans that are paid back evenly over 1 year.
Amount Borrowed |
Weekly Repayment Amount |
Monthly Repayment Amount |
Total Amount of Interest to be Paid |
Total Amount Repaid |
| £100 |
£2.12 |
£9.06 |
£6.43 |
£106.43 |
| £250 |
£5.39 |
£22.65 |
£16.20 |
£266.20 |
| £500 |
£10.82 |
£45.31 |
£32.42 |
£532.42 |
| £1000 |
£21.65 |
£90.62 |
£64.90 |
£1064.90 |
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How do I apply for a loan?
Complete a loan application form available from the collection point or the office. You will also need to complete a loan agreement form unless you would be collecting any payment from a collection point.
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How long will the decision take?
For amounts under £500, where no extra information is required a decision should be available within 5 working days.
Loans for over £500 will take 10 to 15 working days to decide.
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What is the decision based on?
Mainly your history with the credit union (amount, regularity of saving, and repayments of other loans) and whether we believe you can afford repayments.
There is no guarantee you will get a loan.
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How will I get my money?
If the decision is yes, you will receive your money in the way you chose on the application form.
This could be by:
Method of receiving loan |
Normal timescale |
Cheque payable to you |
Posted by 1st class post within 2 working days of receiving your signed loan agreement |
Cheque payable to someone else |
Transfer direct to your bank account |
Leaves our bank account within 3 working days of receiving your signed loan agreement |
Cheque made out to cash (cashed free at our nominated banks) |
Available from your chosen Collection Point at the next available opening time (or at the office by appointment) |
For security reasons loans will never be paid by cash.
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When will I get my money?
If the decision is yes, a loan agreement form needs to be signed by you and received by the Credit Union before you receive your money.
If you are collecting your cheque from a collection point, this can be done at the collection point. You will be told when and where you can pick up the cheque in your decision letter.
If payment is by direct bank transfer or a cheque sent by post we will send a loan agreement form for you to complete with your decision letter. We will make the loan payment to you as soon as we receive the completed loan agreement form.
If you are not collecting your payment from a collection point please allow for time in the post/bank transfer time when working out when you are likely to get your loan payment. NB bank transfers can take up to 4 working days.
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How much do I have to repay and how often?
If we give you a loan, we will tell you in the same letter how much you will have to pay and how frequently.
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What happens if I can’t afford a repayment?
If for any reason you can’t afford a repayment, please let us know as soon as you can. We know that things change in peoples lives and we may be able to lower the amount you have to repay until you can afford to make bigger repayments. We do insist that we are paid back the total amount of the loan, but we may be able to be flexible about the time it takes you to pay the loan back.
Please note the total amount of interest payable and the length of time it will take you to repay the loan will go up if you have to reduce your payments.
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What happens if I miss or forget to make a repayment?
Please make a payment as soon as you remember. The total amount of interest payable and the length of time it will take you to repay the loan will go up if you miss a payment. If you are struggling to make your repayments, please contact us, we may be able to lower the amount you have to repay.
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Do I have to add savings at the same time as repaying my loan?
We encourage you to add to your savings when you repay your loan, but we cannot make you. Adding even small amounts to your savings on a regular basis over time can have a big impact on the amount you have saved.
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What happens if I die?
We hope you don’t die. Subject to some age and health restrictions, we provide free insurance so your loan would be paid off if you died.
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How does Ellesmere Port & Neston Credit Union work?
Below is a diagram that shows how all Credit Unions work.
This is similar to banks and building societies, money taken in from members/customers is lent out to other members/customers and the interest on the loans is used to cover the running costs.
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Members save regularly
in a common fund |
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Any surplus is returned to members as a dividend |
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The fund can be used to provide affordable credit to members in need |
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The interest generated from the loans is used to cover administration costs |
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