SOUTH WEST BATH CREDIT UNION

Beat the banks and the loan sharks

Get a loan at 12.6% APR down your street

Save money with us and get interest as well as helping your friends and neighbours

CU at Credit Union

1. A Credit Union is

A savings and loan co-operative run by and for its members.

All the members of the Credit Union have something in common (the “Common Bond”).

This could be: a) That they all live/work/volunteer in the same geographical area (e.g.South west and Bath,

b) That they all work for the same employer, or

c) That they all belong to the same association, such as a trade union or a club.

Whatever its type, the Credit Union members elect a volunteer Board of Directors at Annual General Meetings.

The members of the Credit Union save whatever they want to regula\rly. The Credit Union makes low interest loans available to its savers.

The Credit Union is non-profit making, and will pay its members interest on their savings once a year from any surplus it has made (the “dividend”).

2. Why should I join?

You get the opportunity to save regularly, in large or small amounts, at a friendly,accessible collection point;

You will have access to loans at a low rate of interest, repayable in manageable amounts:

You know the people looking after your account and receive a completely confidential service;

You can provide a service to others in your Common Bond by saving with the Credit Union, and help keep local money circulating where it belongs – in your community:

You receive free Life Savings and Loan Protection Insurances;

Credit Umions with a surplus are able to pay an annual dividend on your savings (up to a maximum of 8%);

Children can also save. They can save up to £750 but cannot borrow money before the age of 18 years;

You get real control over your money in the Credit Union and a say in who looks after it.

3. Loans – who can borrow?

Anyone who has been a member for at least 13 weeks, and has had a regular saving record, can apply for a loan.

The amount a member can borrow varies from Credit Union to Credit Union, but it’s usually up to twice the amount the applicant hassaved.

The interest rate on loans is fixed by the Credit Union Act 1979 at 12.68% APR or 1% per month on the reducing balance of the loan.

Example

£500 borrowed from a Credit Union over 1 year costs £29.72 in interest

But

If you borrowed £500 from some Loan Companies over 1 year it would cost you £279 in interest (almost 10 times as much!).

With the Credit Union you make a saving of nearly £250!

Note

A Credit Union loan does not affect member’s entitlement to Income Support, Family Credit or any other State Benefit.

4. The Protection of money

Your Credit Union is managed and run by its members and is subject to stringent regulations.

As well as any internal checks and supervision, the Credit Union must also comply with the Credit Union Act 1979 and regulations set down by ther Government, administered by the Registry of Friendly Societies. It must submit accounts to the Registry five times a year.

Additionally, the credit Union cannot increase the interest rate on loans (so there are no nasty surprises for borrowers) and must take out Fidelity Bond insurance to guard against theft or fraud.

Want to know more?

Contact the South West Bath Credit Union at our Registered Office:

Odd Down Youth centre

Odins Road

Odd Down

Bath. BA2 2TL

Or contact: Murielle 317822,

or john@jclutterbuck.fsmnet.co.uk

Collection Points:

St Philip’s Church, Odd Down. Tuesdays 2.30-3.30pm

Rose Cottage, Twerton. Thursdays 10-11am

Southdown Methodist Church, Thursdays 6-7pm