General Terms and Conditions

 

Important information about your Credit Union

 

Membership

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.

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Dormancy

As per Rule 17.0 of the Credit Union, if an owner-member has not:

  1. Taken part in the business of the Credit Union; or
  2. Subscribed to the share capital of the Credit Union (made a deposit to their shares/savings) throughout the preceding twelve (12) months, then the account shall be deemed dormant.

The Credit Union shall not cancel or forfeit any owner-member’s shares unless:

  1. A letter has been sent to the owner-member’s last known address informing him or her of this possible course of action and that he or she has three (3) months in which to contact the Credit Union and either reactivate the account or close it. If, after the three (3) month period, no response has been received, sums of £5.00 or less will be forfeit to the Credit Union.
  2. If after a period of three (3) years the Credit Union has been unable to trace the owner-member, the Committee of Management may declare the share balance to be forfeit to the Credit Union and close the account.

Savings also known as Shares

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:

  1. Standing Order from your personal bank account;
  2. Bank transfer from a third party, such as your employer, or your pension/benefits;
  3. Cheque made payable to you (please allow ten (10) working days for your cheques to clear) presented over the counter at your local branch or collection point;
  4. Payroll deduction from participating employers.

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.

Withdrawals

Savings can be withdrawn in the following manner:

  1. Requested in person in a branch of the Credit Union. Payment methods available are:
    1. A transfer to your personal bank account, or
    2. A transfer to a third party bank account, for example a bill payment, or
    3. A transfer to your PrePaid debit card (if registered through the Credit Union), or
    4. A cheque – Cheques are posted from our head office and may take time to arrive. The Credit Union accepts no responsibility for cheques in the post, and the owner-member accepts the associated costs should the need to cancel or re-issue a cheque occur.
  2. Using our online banking service. Payment methods available are:
    1. A transfer to a registered personal bank account.
  3. Write to our Head Office. Payment methods available are:
    1. A transfer to your personal bank account, or
    2. A transfer to a third party bank account, for example a bill payment, or
    3. A transfer to your PrePaid debit card (if registered through the Credit Union), or
    4. A cheque – Cheques are posted from our head office and may take time to arrive. The Credit Union accepts no responsibility for cheques in the post, and the owner-member accepts the associated costs should the need to cancel or re-issue a cheque occur.
  4. Call us. Payment methods available are:
    1. A transfer to you PrePaid card (if registered though the Credit Union).

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.

Dividends

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.

Loans

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:

  1. If there are grounds for doubting the owner-members ability to repay the loan, or
  2. If the loan would exceed the limit allowed by law, or
  3. If the loan would exceed the limit as set by the Board of Directors.

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.

Death of an owner-member

On the death of an owner-member who has:

  1. No outstanding loan balance, no will and an estate being classed as small (usually under £5,000.00) the Credit Union will accept a suitable indemnity form. In order for the Credit Union to draft a suitable indemnity we will require the original death certificate. Any shares in the account will be released to the person claiming the indemnity, following verification.
  2. No outstanding loan balance, no will and an estate being classed as large (usually over £5,000.00) Community First Credit Union will require a grant of Letters of Administration before any funds will be released to the claimant.
  3. An outstanding loan balance and insufficient shares to cover the loan balance, the Credit Union will then transfer funds against the outstanding balance. Any outstanding loan balance not covered by the share transfer, at the discretion of the Board of Directors of the Credit Union, may either be written off and the account closed, or a claim made against the estate.
  4. An outstanding loan balance not exceeding shares held, the Credit Union will transfer shares required to repay the outstanding loan balance. The remaining shares will then be released in line with a) or b) above.

Termination of Membership

You may give notice that you no longer wish to be an owner-member of the Credit Union by:

  1. Writing to the credit Union at its head office, informing the Credit Union that you no longer wish to be an owner-member and the method you would prefer your share/savings to be paid to you, or
  2. Completing the relevant form in your local branch.

The Credit Union may terminate your membership:

  1. If you fail to meet your obligations to a loan to the Credit Union, or
  2. Where you no longer meet the requirements to be an owner-member of the Credit Union, or
  3. If you do not respect the right of staff and other members to work and use the Credit Union without abuse, either physical or verbal, or threat, or
  4. If you cause damage to the property of the Credit Union.