What is a Credit Union?
A Credit Union is a savings and loans co-operative, set up,
owned and run by its members. Credit Unions work by members saving together
to create a pool of money from which low cost loans are made.
How do I Join?
To become a member of Colne & District Credit Union requires only
a completed application form, 2 proofs of identity and £1 entrance fee.
To apply you must live or work within the boundaries our common bond.
What is a Common Bond?
A common bond is the link legally required between all members of the
Credit Union. For Colne & District Credit union we have a geographical
Live or Work common bond. This means that anyone living or working
in the post code areas BB8 or BB18 can be a member of the credit union.
Is my money protected?
Yes. Credit Unions are required by law to provide insurance cover for
member's money. Insurance is also provided free for any loans to members.
Additionally no-one who is bankrupt or convicted of fraud or dishonesty
may take part in the running of a Credit Union.
When can I take out a loan?
A member over 18 years of age can apply for a loan after saving regularly
for just 6 weeks, subject to current Credit Union policies and regulations.
The maximum loan interest a Credit Union can charge is 1% per month on
the outstanding balance (12.68% API) and that is set not by the Credit
Union but in law!
How is a Credit Union operated?
Colne & District Credit Union is run by a Board of Directors, various
committees and the collectors. The Board are responsible for setting up
a Business Plan and the policy and procedures that the other employees
work to. The treasury team deal with the accounts, the credit committee
deal with loans and the collectors deal with customers at collection points.
The supervisory committee ensure that no wrong doing takes place.
If you would like to help - just ask!
Do Credit Unions pay interest?
After the running expenses have been covered, the members decide each
year how much of the surplus will be paid as a dividend to the membership.
What about children?
Full members of a Credit Union must be 16 years of age but Junior Depositors
are very welcome. Credit Unions are a good way to save for young ones
or to save for a lump sum in their future.
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"Part
Funded through the Single Regeneration Budget and European Regional
Development Fund" |
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