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Credit Union

Credit Union

A credit union is a saving and lending co-operative, democratically owned and run by its members. It offers ethical and convenient savings and affordable loans facilities to its members. Any profits from the business are repaid to the members as a dividend.

Main aims

The three main aims of a credit union are:

  1. To encourage its members to save regularly
  2. To provide loans to members at affordable rates of interest
  3. To help members to manage their finances wisely and effectively

What are the benefits of a credit union?

  • It is an easy and convenient way to save and borrow
  • It offers affordable loans
  • It currently offers a free Members’ Death Benefit Scheme
  • It operates on a "not for profit" basis, aiming to cover its running costs not make money out of its users
  • It is a member of the Financial Services Compensation Scheme, offering protection to its members' savings
  • It offers a way to learn new skills through volunteering.

Credit unions provide an example of people coming together to work co-operatively for their own benefit and the benefit of the community as a whole.

A credit union supports the local economy by keeping local money in the community. Loans to members can mean income for local shops and businesses

Northern Lincolnshire Credit Union

North Lincolnshire Credit Union Limited is now Northern Lincolnshire Credit Union, and is part of Hull & East Yorkshire Credit Union Ltd.

Becoming  a member of the Northern Lincolnshire Credit Union is easy and has many benefits. These include;

New and future products and services

  • Loans with rates starting from four per cent APR
  • Saver accounts for all occasions
  • Pre-paid VISA cards – a safe and handy alternative to carrying cash
  • Community Accounts for organisations
  • Annual Dividends for members in line with profitability
  • Free Members’ Death Benefit Scheme (replacing the Life Savings/Loan Protection insurance)
  • Join the Monthly Lottery at £1 per ticket
  • Five per cent discount on Say Shopping Vouchers
  • Member exclusive deals through the Co-operative Electrical
  • Check your balance online (coming soon)

To become a member or for more information about the benefits of the Northern Lincolnshire Credit Union please stop by the Scunthorpe office.

Credit unions are supported by, and work with, a range of partner organisations including local councils, the DWP, housing providers, employers, schools, colleges and universities, consumer organisations, trade unions, churches and community groups of all kinds.

Additionally there is strong cross-party and governmental support for credit unions.

The members make regular savings, this can be as little or as much as they wish. These savings then form a common pool of money from which loans are made to members.

Loans are granted to members on the basis of an individual’s assessed capacity to repay. Interest rates vary with the type and size of loan but aim to be lower than for mainstream lenders.  By law the maximum rate cannot exceed three per cent per month on the reducing balance (42.6 per cent APR). This rate, which credit unions apply to small loans, is around ten times cheaper than rates quoted by doorstep lenders.

All DWP and HMRC benefits can be paid directly into a credit union.

People who join a credit union must belong to what is called a "common bond". Northern Lincolnshire Credit Union’s common bond includes anyone who:

  • lives or works in the county of East Yorkshire or area of North Lincolnshire Council or North East Lincolnshire Council or postcode areas YO14, YO17, YO8, DN14
  • works for, or is a tenant of, Sanctuary Housing, The HICA Group (and subsidiaries), Yorkshire Housing, or Your Headrow 

Credit unions are non-discriminatory and welcome everybody from within the common bond as members or junior savers regardless of income, employment status or age. 

If you wish to join Northern Lincolnshire Credit Union you can call into the branch at 162 High Street Scunthorpe or join online.

01482 778753 or email info@hullandeycu.co.uk

There is no minimum, however, all members must maintain at least £1 in their savings at all times.

Deposits can be made at a branch, by payroll deduction (if you work for North Lincolnshire Council or certain other employers), by standing order from your bank or building society or by having your DWP and/or HMRC benefits paid directly to a your credit union account.

Will I get interest on my savings?

Depending on the surplus at the end of the financial year, a dividend may be declared to the members.  This is announced and voted on by members at the AGM in December.

How soon and how much can I borrow from the credit union?

Northern Lincolnshire Credit Union has a variety of loan products available; most of which are available to members immediately after they join. Loans are subject to acceptance. A credit search and assessment of the applicant’s income (to determine their ability to repay) will be used to assist in making the decision to lend.

Credit unions must be authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority; and must submitting quarterly returns and audited annual returns.

Members’ savings are protected by the Financial Services Compensation Scheme. Currently the first £85,000 of members' savings are 100 per cent protected by this scheme.

Credit Unions are governed by the Credit Union Act 1979.

They are independently audited

They are members of the Financial Services Compensation Scheme which gives the same protection as that offered to bank and building society customers.

Your business is private because all credit union members and officers who have access to personal information must act in a confidential manner and are governed by the Data Protection Act.

Are members' details kept confidential?

Your business is private because all credit union staff and officers who have access to personal information have made a declaration to act in a confidential manner and are governed by the Data Protection Act 1998.

Are they insured ? YES!

A credit union is insured against fraud and theft.

They currently provide a free Members’ Death Benefit after one year of membership, payable to a nominated beneficiary upon the member’s death.

Contact details

info@hullandeycu.co.uk

01482 778753

162 High Street
Scunthorpe
North Lincolnshire
DN15 6EH

Opening hours

Monday to Friday: 10am to 12.30pm

and 1pm to 4pm

(Closed Saturdays and Sundays)

Last updated: 24/05/2017
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