The Credit Union will consider loan applications from members for any worthwhile purpose. Each application is treated in the utmost confidence and will be considered on its own merits. It is the Credit Union policy to meet the borrowing requirements of as many members as possible, depending on the available funds.
Applications for loans are made on a standard loan application form. Loans can only be applied for by phoning or calling into one of our offices. LOAN FORMS ARE NO LONGER POSTED. Our staff will give you any assistance required. Loans will then be considered by a Loan Officer.What you need when applying for a loan
In deciding whether or not to grant the loan, the Loan Officer will take into account the member’s record of savings and loan repayments, as well as ability to repay. Once the loan is granted the member will be asked to complete AND sign a Loan Form, which is a legally binding document being a promise to repay the loan by committing to regular repayments. Loans will not be issued until we have a signed loan agreement. Our policy includes Members saving as well as repaying a loan, with the minimum saving payment being £1 per week or £5 per month.
Remember - only members aged 18 and over are eligible to receive loans. NO LOANS ARE GRANTED ON-LINE, YOU MUST CONTACT ONE OF THE OFFICES
Planning and managing repayments
Credit unions are flexible with regard to repayment plans, though there are some legal limitations to length and amount of loans. Sefton Credit Union currently has FOUR years as the maximum loan term. The member will be advised on the best repayment plan to meet their own circumstances. Members are generally advised to repay a loan in as short a time as possible. Should a member experience difficulties in meeting repayment commitments, they should immediately explain the situation to the Credit Union, which will treat the matter sympathetically and in total confidence. Depending on circumstances, the loan will be renegotiated where possible.
There are no penalties associated with clearing your loan quicker than agreed.Interest on credit union loans
By law credit unions cannot charge any more than 3% per month on the reducing balance of a loan. This represents a rate of 42.6% APR (Annual Percentage Rate). Credit unions do not charge fees or transaction charges. Since interest is charged only on the outstanding balance of the loan, you will pay even less if you repay in a shorter time than planned.
As from 3rd March 2014 the interest rate to be charged will be variable as set out below. (PART 1, as from 1st April 2014)
1) All new members who joined AFTER 1st April 2014 their first loan will be charged at 3% per month [42.6% APR] on a reducing balance, which must run for between 6 and 12 months, and of an amount not greater than £500. Any loan at 3% that requires a top-up will be charged at 3% until it has been cleared, AND any top-up will only be allowed in exceptional circumstances.
2) All loans currently at 1% [12.7% APR] OR 2% [26.8% APR], top-up loans, loans booked prior to 3rd March 2014, the interest rate will be retained. These accounts will retain the % rate on any outstanding loans until they are paid in full. Once the 1% loan is cleared, then the rate will be 2% per month.
3) All loans are at the discretion of Sefton Credit Union, and are not guaranteed.
A condensed guide to the use of your personal information by ourselves and at Credit Reference and Fraud Prevention Agencies.
We may use credit reference agencies (CRA) and fraud prevention agencies (FPA) to help us make decisions. The condensed guide to how we, CRAs and FPAs will use your information is detailed below. If you would like to see more information about this or the full version telephone either 0151-363-7300 or 0151-363-7299 and we will send you a leaflet.
By confirming your agreement to proceed you are accepting that we may each use your information in this way.
How we will use your data
1. We will search at credit reference and fraud prevention agencies for information on all applicants and their financial associates’; if you are providing information about others, on a joint application, you must be sure that you have their agreement. If you give us false or inaccurate information and we identify fraud, details may be passed to credit reference and fraud prevention agencies.
2. We will use the information provided to us by credit reference and fraud prevention agencies to help make credit or credit related decisions about all applicants, to verify their identity, for the prevention and detection of fraud and/or money laundering, and to manage accounts. If you borrow from us and do not make payments that you owe us, we will trace your whereabouts and recover debts.
3. When credit reference agencies receive a search from us they will place a search “footprint” on your credit file whether or not this application proceeds.
4. The information which we and other organisations provide to the credit reference and fraud prevention agencies may be supplied by credit reference agencies to other organisations and used by them to perform similar checks. Organisations may access and use from other countries the information recorded by fraud prevention agencies.
5. Your data may also be used for other purposes for which you give your specific permission or, in very limited circumstances, when required by law or where permitted under the terms of the Data Protection Act 1998.