Frequently Asked Questions (faqs)
A credit union is a mutual financial co-operative, which provides a convenient savings and low cost loans service to its members. There are around 600 credit unions in England , Scotland and Wales , providing financial services to around half a million people. Credit unions are regulated by the Financial Services Authority, and money saved in a credit union is protected by the Financial Services Compensation Scheme on the same basis as it would be if it was held in a bank or building society.
Credit unions have existed since the mid 19th century. There are now around 120 million credit union members in 80 countries around the world. In Ireland , half the population belong to a credit union, in the US and Australia the figure is around a third. Credit unions have existed in Britain since the 1960's; in 2004 the movement marked the 25th anniversary of the Credit Unions Act (1979).
For further information about credit unions, please visit www.abcul.coop
Anyone who lives, worships, studies or works in Harlow , (in postcodes CM17, CM18, CM19 and CM20) can apply for membership. Contact the office to apply for membership.
A credit union is democratically owned and controlled by the members. Members are asked to attend the Annual General Meeting where they can speak and vote. Directors are elected onto the Board of Management for a period of three years. Directors are members of the credit union. Those elected to the Credit Committee, who control the loans granted, are also members. Other members form a Supervisory Committee to check that everything is being run correctly. An internal auditor continually checks that systems and procedures are adequate and being followed. Each member has one vote, regardless of the number of shares held at the AGM.
Share Account (Account 1) All members have to make regular payments - a minimum of £3.00 per week or £20 per month for members who have outstanding loans. It is suggested that all members (even those without loans) pay in regularly this amount, however it is recognised that during unemployment or other difficult times a minimum sum of £1 per week or £10 per month is required to remain a member (this minimum is conditional on, as stated, there being no outstanding loan). This money goes into a 'share' account. This account is used to help decide the amount of loan a member is eligible for. Savings are called shares because they don't earn interest; instead they take a share of the dividend which is declared at the AGM.
Provided these conditions of the Share Account (Account 1) are met, members may make use of other services of the credit union. Continue reading for some of these services, click here for more on secondary accounts, or contact the office for more details.
Share Account 2 is available for regular or irregular deposits, which is not used as surety for a loan. This account is often used for saving for subscriptions or for paying other known large expenses. Christmas and Holidays savings accounts let members save for these special occasions and keep them in control of their finances.
Loans are usually related to the amount a member has saved. This makes them self-regulating to an extent. Interest is charged at 1% per month on the reducing balance - see separate page loans for more details. This is a fixed rate and will not go up. There are no arrangement fees and no charges for early repayments.
Apart from the first 6 months, shares are covered by life savings insurance , which means that when a member dies their savings are generally doubled and paid to the person nominated by the member. There are some restrictions to this for older members - please contact the office for fuller details.
In the same way, loans are covered by loan protection insurance (except for the first 6 months for existing illnesses), which will clear the loan in the event of death or permanent disability. The life savings and loan protection insurance is automatic and supplied at no additional charge to the member. Again there are some restrictions to this for older members - please contact the office for fuller details.
A Family Protection Plan is available to cover up to 6 members of a family and would pay out on the death of any of the named members for a single monthly payment. Other insurances are available through Credit Union members financial services: life assurance, health assurance, motor, home and travel insurance, why not get a quote to see how they compare?
Please visit our insurance page for new and exclusive insurance products that as a member of Harlowsave you are entitled to apply for.
A dividend is proposed each year by the directors, and agreed at the Annual General Meeting. The AGM can vote to reduce the amount proposed, but not increase it. In some years a dividend is not paid to safeguard the future prosperity of the credit union and ensure it's growth for the benefit of all members. If this is so the decision of the directors and the reasons for it are explained to all members who attend the AGM. The amount of dividend paid to each member depends on the amount held in each of their share accounts during the credit union's financial year, which is October through to September.
Harlowsave is located in the south of Harlow town centre in the Central Library, 1st Floor, Cross Street, Harlow, CM20 1HA. The Central Library is between the Water Gardens and the Harvey Centre and Broadwalk, Harlow's main shopping street. The Water Gardens car park is the closest (parking charges apply)
We have recently moved into the Central Library so please check these times before coming. Office hours for member administration (via the telephone) are usually 10am until 2pm, with members welcome to call in between 12 and 2pm on Monday, Tuesday and Thursday, with Friday being the extended hours of 10am and 2pm. Exceptions are for training, conferences and important meetings, which will be publicised beforehand, or unavoidable staff shortage.
Credit unions are a way of you taking charge of your money. You can have a say in how the organisation will be run. It helps you to build up your savings and use these to get a low cost loan. Because you pay into your savings while paying off your loan, when you've finished paying your loan you are better off than when you started. Profits are returned to members in the form of a dividend.
Because of the regulation by the Financial Services Authority (FSA), you know that we are looking after your money and cover by the Financial Services Compensation Scheme means that your money is as safe as it would be in a bank or building society.
You certainly can! As well as the committees: directors, credit committee and supervisory, who are nominated to stand for office and voted for at the Annual General Meeting, we are always looking for help in other capacities. Volunteers are crucial to the credit union in many ways: for collection or information points; for mail-outs; for photographs; marketing; taking leaflets to where organisations meet, surgeries, etc; special events where we try to publicise the credit union.
As we evolve different requirements are found to be required, some specialist skills but for some just the gift of precious time. Please feel free to offer your services by contacting the office. Full training will be given free of charge to those willing to give their time. Some people have found that voluntary work at Harlowsave has been a good "filler" on their CV and future employers have been impressed by this active contribution which they have made.
The FSA (Financial Services Authority) have recently sent a notice to all credit unions that all deposit takers must, as from the 1st January 2010, be informed that their money is covered by the FSCS (Financial Services Compensation Scheme). All savings in Harlowsave are 100% covered by this scheme.
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Last amended on Monday October 24, 2011