Credit Union anyone ??

[Dave7]

Not a problem for me but will be interested in others thoughts or views.
The aunty has paid into it for years and every year draws her saving (+ interest) out no problem.
Her local branch works out of a community hall, as it seems many branches do.
On her behalf I am trying to contact this office....... always a poor recorded message.
Here is the strange/surprising thing......
I contacted MY nearest office only to be told that each branch is totally independent and have no link with other offices.
Also.....I was told there is no head office, no umbrella organisation, no one I can contact.
The aunty has a cheque for her savings so it should be safe but it does seem a bit Mickey Mouse to me.

 

[Tenkaykev]

Not a problem for me but will be interested in others thoughts or views.
The aunty has paid into it for years and every year draws her saving (+ interest) out no problem.
Her local branch works out of a community hall, as it seems many branches do.
On her behalf I am trying to contact this office....... always a poor recorded message.
Here is the strange/surprising thing......
I contacted MY nearest office only to be told that each branch is totally independent and have no link with other offices.
Also.....I was told there is no head office, no umbrella organisation, no one I can contact.
The aunty has a cheque for her savings so it should be safe but it does seem a bit Mickey Mouse to me.

"Credit unions are small organisations and lack the enormous resources of the big banks. On the other hand, regulations mean they must be far more prudent and not over-lend.
As with any type of savings, the most important thing to consider is "in the event the credit union went bust, is my cash protected?". The answer is yes.
Credit union savings have exactly the same protection as normal savings accounts; in other words, the Financial Services Compensation Scheme will pay back £85,000 per person, per institution. In any case, many credit unions limit the total you can save with them to £10,000 or £15,000."

 

[Dave7]

"Credit unions are small organisations and lack the enormous resources of the big banks. On the other hand, regulations mean they must be far more prudent and not over-lend.
As with any type of savings, the most important thing to consider is "in the event the credit union went bust, is my cash protected?". The answer is yes.
Credit union savings have exactly the same protection as normal savings accounts; in other words, the Financial Services Compensation Scheme will pay back £85,000 per person, per institution. In any case, many credit unions limit the total you can save with them to £10,000 or £15,000."

Yes.. . I read that so am not worried long term. The problem I have is I cannot contact the 'branch' that has her savings and there is no head office to go to.

 

[classic33]

Yes.. . I read that so am not worried long term. The problem I have is I cannot contact the 'branch' that has her savings and there is no head office to go to.

Did they have no contact details for people at the branch you wanted.

 

[Dave7]

Did they have no contact details for people at the branch you wanted.

Yes.
An office in a community hall (no one there)
A phone number which is not answered.

 

[tom73]

I'm a big fan of them and have been a member of ours since they opened i'm lucky ours was managed well for years I know him and worked in the past. Now it's one of the biggest in the county and offers much more than money put also white goods. I don't need them but use them for some savings which helps others at the same time as having easy access to my savings.

They must have a registered office they need on to be registered with both the FSA and to be registered by Industrial and Provident Societies Act. As with many things covid maybe playing a part and they my not be office based at the moment. Depending how big they are many also use a lot of volunteers. Again covid maybe effect how many they can call on at the moment.
If what you're saying is right each branch is operating as a credit union not a branch they must have a resignation number ?
How you expected to get any money out then ?
They can't be expect to have money at hand just incase , running out of a hall is not that safe for them or anyone else.

 

[Drago]

The aunty has a cheque for her savings so it should be safe but it does seem a bit Mickey Mouse to me.

Ah, it'll be run by Bikeability trainers then.

 

[Pale Rider]

My brother is the volunteer treasurer/financial director of his local credit union.

As a retired commercial bank manager, the union sees him as an ideal candidate and he probably is.

It's the nearest he will ever get to a bank of his very own.

From what he's told me, it's a pukka organisation with two or three shop front premises. although they are thinking of letting one go.

Not sure of the turnover, or whatever you want to call it, but I think it runs into hundreds of thousands.

Credit unions seem a good idea to me.

Far better for poorer borrowers to use one of those than one of the 'sub prime' payday or so-called 'doorstep credit' companies.

I saw a telly advert the other day for a loan company charging close to 100% interest.

That's nothing other than usury when bank base rates are close to zero.

 

[Cycleops]

Seems like a good idea, I guess it’s aimed at people who don’t have a bank account. It’s not ‘online’ so can’t be hacked which must be a great advantage.
Down here there has been a revolution in banking called mobile money, it works with your mobile phone number. You can pay for stuff and send money to anyone anywhere that has a MM account and it’s cheap. Most shops take it now. All the mobile phone companies run MoMo.

Heres how it works:

View: https://youtu.be/l8JcQTQ1vzQ

 

[Vantage]

I joined my credit union after the wife and I split. At that time we were up to our eyeballs in debt with bank loans, doorstep loans and Brighthouse
Mum was a member and recommended them when I mentioned my plans to start cycling again as I had no money whatsoever to buy a bike. On day one of being a member I submitted my loan application and a few days later they phoned with the good news of a £300 loan. The rest was lent to me by my brother and the Dawes Vantage was ordered.

Over the years I've borrowed again and again whilst building up savings which has paid for court costs (getting custody of the kids😊) camping necessities and Christmas prezzies for the kiddies. The latest loan gave me spending money for mine and dad's tour.
The union has grown over the years from a liitle office in town offering loans up to £1000 to residents in Bolton only to what now seems a big bank with a posh shop in the town square, loans up to £15000 and white goods serving a wider area and they even went completely online about a year ago. The premises are only open a few days a week and I can't always get through on the phone but they always call back if I leave a message and then there's email.
Interest rates are within reason, staff are friendly and during hard times like when my ESA was suspended and I couldn't afford to pay my loan for a few months, they left me alone. No nagging to repay, no threats, nothing. Run by humans. As it should be.
The big banks could learn a few lessons from credit unions. My only debts these days are with the credit union.

 

[Oldhippy]

Cyclechat.net Credit Union perhaps? Fabulous idea I think. We can all get the bikes we want and save! 😊

 

[Dave7]

I joined my credit union after the wife and I split. At that time we were up to our eyeballs in debt with bank loans, doorstep loans and Brighthouse
Mum was a member and recommended them when I mentioned my plans to start cycling again as I had no money whatsoever to buy a bike. On day one of being a member I submitted my loan application and a few days later they phoned with the good news of a £300 loan. The rest was lent to me by my brother and the Dawes Vantage was ordered.

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Over the years I've borrowed again and again whilst building up savings which has paid for court costs (getting custody of the kids😊) camping necessities and Christmas prezzies for the kiddies. The latest loan gave me spending money for mine and dad's tour.
The union has grown over the years from a liitle office in town offering loans up to £1000 to residents in Bolton only to what now seems a big bank with a posh shop in the town square, loans up to £15000 and white goods serving a wider area and they even went completely online about a year ago. The premises are only open a few days a week and I can't always get through on the phone but they always call back if I leave a message and then there's email.
Interest rates are within reason, staff are friendly and during hard times like when my ESA was suspended and I couldn't afford to pay my loan for a few months, they left me alone. No nagging to repay, no threats, nothing. Run by humans. As it should be.
The big banks could learn a few lessons from credit unions. My only debts these days are with the credit union.

Hope all works out well for you.
The office where my aunty has her money is not manned but has a very poor quality recorded message to say its closed due to Covid 19. So, although it sounds good in principle my limited experience is quite negative