Membership will commence from when Community First Credit Union Limited receives a completed membership application form with the required supporting documentation, five pounds (£5) membership fee, and a minimum one pound (£1) deposit to share/savings.
All accounts will incur a £5.00 annual administration charge. This is first payable in February 2020, and then will be taken annually starting October 2020.
It is a requirement of the PRA that we have proof of ID and proof of address held on record for all members. This will normally consist of one item from A and one from C or two items from B and one from C. Where a member cannot provide proof of identity from list A the reasons for this must be documented on the owner-member’s account.
The same document cannot be used as proof for both identity and address. The Credit Union needs to see original or certified copies of all documents listed bearing the same name and address, as stated on the application. The credit union will not accept photocopied or doctored documents for proof of identity.
List A: Proof of Identity (one required): - to prove WHO you are:
List B: Proof of Identity:- (two required)
List C: Address verification (at least one to be provided dated within the last 3 months):- To prove WHERE you live…
Any accounts signed up online will be verified by the national register.
As per Rule 17.0 of the Credit Union, if an owner-member has not:
The Credit Union shall not cancel or forfeit any owner-member’s shares unless:
You may give notice that you no longer wish to be an owner-member of the Credit Union by:
The Credit Union may terminate your membership:
An owner-member of the Credit Union must maintain a minimum shareholding (in the form of savings) of one pound (£1).
Deposits to shares/savings can be made by:
Your savings are insured by the Board of Directors against loss, costs and expenses incurred as a result of mismanagement, fraud and dishonesty, as required by law.
The Credit Union is covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a credit union is unable to meet its financial obligations. Most depositors – including most individuals and small businesses – are covered by the scheme.
For further information about the scheme (including the amounts covered and eligibility to claim) please call us on 030303 000 10, ask at your local branch, or refer to the FSCS website www.fscs.org.uk.
FSCS compensation values can change, we recommend referring to the FSCS website regularly to keep up to date with any changes.
The Credit Union will pay dividend on shares annually, following the Annual General Meeting on shares held during the previous financial year (1st October to 30th September). The dividend is paid in lieu of interest and paid gross of income tax.
At the Annual General Meeting owner-members are asked to vote on the dividend proposed by the Board of Directors. Under Rule 26.0, owner-members may not vote a higher level of dividend than that proposed by the Board of Directors, but may vote to pay a lower dividend.
Accounts deemed Dormant under Rule 17.0 will not receive a dividend.
Owner-members aged eighteen (18) years and over are eligible to apply for a loan.
A loan applicant must be in receipt of direct electronic payment to their credit union account; this may be in the form of a wage, payroll deduction, benefit payment or bank standing order.
All applications must be made using either an authorised Loan Application Form, or using the Credit Union’s online loan application service (available to those who have registered for online banking services).
The granting of loans is at the discretion of the Credit Union, and no owner has an entitlement to a loan. The Credit Union may refuse, defer the granting of a loan, or limit the size of a loan granted, particularly but not solely in the following circumstances:
The rate of interest on loans is charged daily on the reducing balance of the loan.
Owner-members are required to make compulsory savings while they have an outstanding loan balance. These savings may only be withdrawn when all loan balances are repaid in full.
Compulsory savings requirements are two pounds (£2) per week for each one thousand pounds (£1000) or part thereof outstanding at the time the loan is issued.
The value, number and frequency of loan repayments will be agreed at the time of application.
Loan repayments can be made in the same manner as savings deposits.
It is essential for all owner-members to keep to their agreed repayments and speak to the Credit Union if they face any financial hardships and struggle to keep up their obligation to loan repayments. The Credit Union will, in all instances, attempt to assist owner-members in meeting their obligation to the loan.
Failure to meet repayments will disqualify owner-members from all Credit Union services and may result in their details being passed to a Debt Recovery Agent, a Credit Reference Agency, the DWP or lead to court action.
On the death of an owner-member who has:
Savings can be withdrawn in the following manner:
Savings may only be withdrawn that are in excess of any outstanding loan balance, or at the discretion of the Credit Union.
Under Rule 16.0 the Credit Union may require owner-members to give sixty (60) days’ notice of withdrawal of savings. However, the Credit Union endeavours to make available any withdrawal request as soon as possible, in most cases this will be the same day.