Nottingham Credit Union

Nottignham Credit Union-affordable loans and savings

There have been many recent problems with Farepak and people falling into debt, using loan sharks and gettign into serious financial problems. Nottingham Credit Union may be able to help. Click here to see their services.

The following is from the web site of Nottingham Credit Union.

"Nottingham Credit Union

Over the course of the past decade, a number of committed people in the Nottingham area set up their own credit unions. These were the Fair Goose Credit Union, based in Radford and Hyson Green; the Friar Tuck Credit Union, based around Lenton and Dunkirk; and the Bulwell Credit Union.

The history of the Credit Union movement began in Germany during the 1840s, around the time that the Rochdale Pioneers formed their co-operative shop. Today, 48% of the population of Ireland are Credit Union Members, 25% of the population of the United States, 23% of the population of Australia and 15% of the population of Canada. The first British Credit Union to be formed was in Wimbledon in 1964. This was, regrettably, followed by a slow start in this country, with less than 1% of the population currently being a member of a Credit Union.

A Credit Union is a financial co-operative, owned by its members and run by them for their mutual benefit. A Credit Union’s members are linked by a Common Bond, which in Nottingham Credit Union’s case is anyone living or working in and around the city of Nottingham including Gedling Borough.

Credit Unions are democratic organisations and all members are encouraged to get involved in the management side. All members are invited to attend the AGM and have an equal vote (regardless of how much or how little they have saved with the Credit Union). All members are entitled to have a copy of the Audited Accounts of the Credit Union. The Credit Union Movement shows that by working together people can achieve far more through co-operation than by individual effort.

Some people choose to save with a Credit Union because, for various reasons, they are unable to open a Bank Account. It can be difficult for people to take out loans at reasonable interest rates if they do not have a bank account and/or do not have a household income of at least £10,000 per year and/or have a record of debt. Banks, building societies and other lending companies usually only offer loans at low rates of interest if they are for £2,000 or more. Other people choose to save with and borrow from a Credit Union because they would rather use a local community organisation.

There are no hidden costs in taking out a loan with a Credit Union and there are no administration charges. All the member pays is 1% per month on the outstanding balance of their loan. Members automatically get the benefit of Life Insurance and Loan Protection Insurance at no charge to themselves. Credit Unions can lend their individual members as little as £25 or as much as £5,000, depending on their savings record. Members do not have to produce proof of income but must sign an Agreement stating that they will pay off the loan within an agreed timescale. You can borrow from a Credit Union even if you have a history of debt. A Credit Union will grant you a loan based on your record of saving with the Credit Union and how you have paid off previous loans with the Credit Union.

In their early years of operation, few Credit Unions are able to offer their members a return on their savings; however, when a Credit Union is well established, members usually receive a Dividend of between 3 and 4%. This is higher than the rate of interest offered by many Banks and Building Societies, especially for small amounts.

Credit Unions are regulated by the Financial Services Authority, which is a Government body. When registering, all Credit Unions have to agree to comply with the laws covering Credit Unions (Credit Union Act 1979), which established a Board of Registration. We are governed by a Rulebook ABCUL. We also have the Financial Services Ombudsman, as an independent body dealing with complaints and so on."