A credit union is a not for profit community savings and loans cooperative, which is owned and controlled by its members. Credit unions are found all over the world and in some countries – Ireland and Canada , for example – they take their place on the high street alongside banks and other financial institutions. We’re still a young Credit Union in Stockport but we’ll get there!
Because credit unions are local and approachable; are guaranteed by the Financial Services Compensation Scheme; have services that meet your needs; are responsible lenders and invest in your community
Yes. Credit union insurance covers everyone involved in handling the money or the books. Credit unions are members of the Financial Services Compensation Scheme which safeguards members’ money and are regulated by the Financial Services Authority (FSA) which regulates banks and building societies – the FSA also vets and approves those who run the credit union.
Yes. Saving is a condition of membership. However, you can withdraw your savings by giving seven days notice as long as you do not have an outstanding loan. Credit unions can pay a dividend to members based on how much they save. Running expenses are kept low and at the end of the financial year, once expenses have been paid and reserves set aside, any surplus is used to pay a dividend to savers based on the amount they have held in their account during the year.
You can apply for a loan after you have saved regularly for 10 weeks and you're 18 or over. The amount you can borrow depends on how much you have saved - for a first loan, the maximum is twice the amount you have saved, and for all other loans, the maxium is three times the amount you have saved. The Credit Committee will look at your savings record and your ability to repay when deciding whether or not to grant a loan. You can borrow money for any legal purpose and most loans are paid off over two years. The credit union encourages people to save first and to borrow within their budget. For more information, click on 'Loans' above.
Credit Unions charge 1% per month on the declining balance of your loan. This works out at 12.68% APR. So for example, if you borrow £100 and repay it over 50 weeks, you will pay £6 interest. Repayments are designed to meet your individual needs and you can pay off your loan at any time without penalty. Some members borrow from the credit union to pay off existing, more expensive loans. For more details click on 'Loans' above.
Come and talk to us. Credit unions are run by their members, for their members. If you run into difficulties we will find a way to help and support you to repay your loan while you get back on your feet. This is an important difference between credit unions and other financial institutions.
However, don’t think that credit unions are a soft touch. We have to look after all our members. If a member persistently defaults on their loan and does not contact us to discuss their situation, we will take action including taking the member to court in the most extreme cases.
The members run Stockport Credit Union. The Board of Directors is drawn from the membership. The members themselves run the collection points, make decisions on loan applications, check that the systems are running smoothly and liaise with the FSA. They are all trained, fully insured to do their jobs and sign a confidentiality agreement. Any member who wishes to become more involved as a volunteer should contact the credit union and we will talk to you about the opportunities available to you.
If you have any other questions about Stockport Credit Union, please email or telephone us and leave us a message. We WILL get back to you.