General information
- What is a credit union?
- Who runs the Highland Communities Credit
Union?
- Who can join Highland Communities Credit
Union?
- Does Highland Communities Credit Union have
any connections with other credit unions?
- What are Highland Communities Credit Union's
aims?
- Is Highland Communities Credit Union
regulated?
How does it work?
- Are members expected to save regularly?
- How can I save?
- How much should I save?
- Can I withdraw my shares at any time?
Loans
- Can anyone get a loan from Highland
Communities Credit Union?
- How soon can I borrow?
- How much can I borrow?
- What can I get a loan for?
- How much will it cost me and how is interest
calculated?
- When do I start paying interest on my loan?
- What will the Credit Committee do?
- How long will it take to get a loan?
- What is a secured loan?
- Is it best to borrow for one item at a time?
- If I have an outstanding loan balance, can I
borrow more money?
- What is a loan agreement?
- What happens if I fall behind with my
repayments?
Insurance
- Life Savings Insurance
- Loan Protection Insurance
- Summary of important exclusions
A. General Information
01 What is a Credit Union?
A Credit Union is a not for profit financial co-operative, owned and
run by its members.
02 Who runs the Highland Communities
Credit Union?
Highland Communities Credit Union is run by the Board of Directors -
volunteers who are elected by the membership at the AGM. The Board
of Directors sets all policies and procedures of Highland
Communities Credit Union, and decides how money is spent, and how
Highland Communities Credit Union should proceed.
Members also elect the Supervisory Committee, whose job it is to ensure that all officers of the Credit Union are acting within the law, the Rulebook and the agreed Policies and Procedures. The Supervisory Committee also ensures that officers are acting in the best interest of the members.
The Credit Committee is also elected at the AGM. The Credit Committee meet to decide whether to pass or reject a loan.
The Collection Points are also staffed by volunteers.
Highland Communities Credit Union is run by its members. Although we currently have one part time paid employee, we rely heavily on volunteers. There are various opportunities for members to get involved, and the more volunteers that we have, the less onerous the work becomes for everybody.
03 Who can join Highland Communities
Credit Union?
All members must have a common bond. In Highland
Communities Credit Union’s case this is living or working with the
Highland region. All residents within the Highland region can join
Highland Communities Credit Union provided they agree to abide by
Highland Communities Credit Union's rules.
People who stay outside the Highland region cannot become members. However, members who move outside the common bond may retain their membership at the discretion of the Board, and provided such members do not exceed 10% of the total membership.
04 Does Highland Communities Credit
Union have any connection with other Credit Unions?
Credit Unions are owned and run by their own membership. In this
respect they are independently run.
However, Highland Communities Credit Union is affiliated with the Association of British Credit Unions Ltd (ABCUL) in order to benefit from co-operation, including:
05 What are Highland Communities
Credit Union's aims?
Our Mission Statement is: Highland Communities Credit Union aims to
provide a local savings and borrowing facility responsive to the
needs of the members and to strengthen our community by working
together.
06 Is Highland Communities Credit Union regulated?
Highland Communities Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). We are also a member of the Financial Services Compensation Scheme (FSCS) and the Financial Ombudsman Service (FOS).
Our Firm Reference Number (FRN) is 213955.
Information on your data is also fully regulated
We are committed to protecting our members’ privacy. The credit
union requires any information marked as mandatory for membership to
either meet legal obligations or to enable us to perform our
contract with you. Where you are not able to provide us with this
information, we may not be able to open an account for you. Where we
request further information about you not required for these
reasons, we will ask you for your consent.
How we use your personal
information
Highland Communities credit union may process, transfer and/or share
personal information in the following ways:
For legal reasons
• confirm your identity
• perform activity for the prevention of financial crime
• carry out internal and external auditing
• record basic information about you on a register of members
For performance of our contract
with you
• deal with your account(s) or run any other services we provide
to you;
• consider any applications made by you;
• carry out credit checks and to obtain and provide credit
references
• undertake statistical analysis, to help evaluate the future
needs of our members and to help manage our business
• To send you statements, new terms & conditions (including
changes to this privacy statement), information about changes to the
way your account(s) operate and notification of our annual general
meeting.
For our legitimate interests
• recover any debts owed to us
With your consent
• maintain our relationship with you including marketing and
market research (if you agree to them)
Sharing your personal information
We will disclose information outside the credit union:
• to third parties to help us confirm your identity to comply
with money laundering legislation
• to credit reference agencies and debt recovery agents who may
check the information against other databases – private and public –
to which they have access to to any authorities if compelled to do
so by law (e.g. to HM Revenue & Customs to fulfil tax compliance
obligations)
• to fraud prevention agencies to help prevent crime or where we
suspect fraud;
• to any persons, including, but not limited to, insurers, who
provide a service or benefits to you or for us in connection with
your account(s)
• To our suppliers in order for them to provide services to us
and/or to you on our behalf
• to anyone in connection with a reorganisation or merger of the
credit union’s business
• other parties for marketing purposes (if you agree to this)
Where we send your information
While countries in the European Economic Area all ensure rigorous
data protection laws, there are parts of the world that may not be
quite so rigorous and do not provide the same quality of legal
protection and rights when it comes to your personal information.
The credit union does not directly send information to any country
outside of the European Economic Area, however, any party receiving
personal data may also process, transfer and share it for the
purposes set out above and in limited circumstances this may involve
sending your information to countries where data protection laws do
not provide the same level of data protection as the UK.
For example, when complying with international tax regulations we
may be required to report personal information to the HM Revenue and
Customs which may transfer than information to tax authorities in
countries where you or a connected person may be tax resident.
Retaining your information
The credit union will need to hold your information for various
lengths of time depending on what we use your data for. In many
cases we will hold this information for a period of time after you
have left the credit union.
To read our policy for retaining members data please or contact us
at: An Drochaid, Claggan PH33 6PH
Credit rating agencies
In order to process credit applications you make we will supply your
personal information to credit reference agencies (CRAs) and they
will give us information about you, such as about your financial
history. We do this to assess creditworthiness and product
suitability, check your identity, manage your account, trace and
recover debts and prevent criminal activity.
We will also continue to exchange information about you with CRAs on
an ongoing basis, including about your settled accounts and any
debts not fully repaid on time. CRAs will share your information
with other organisations. Your data will also be linked to the data
of your spouse, any joint applicants or other financial associates.
This may affect your ability to get credit.
The identities of the CRAs, and the ways in which they use and share
personal information, are explained in more detail on:
• CallCredit at www.callcredit.co.uk/crain
• Equifax at www.equifax.co.uk/crain
• Experian at www.experian.co.uk/crain
Your Rights
Your rights under data protection regulations are:
(a) The right to access
(b) The right of rectification
(c) The right to erasure
(d) The right to restrict processing
(e) The right to data portability
(f) The right to object to data processing
(g) Rights related to automating decision-making and profiling
(h) Right to withdraw consent
(i) The right to complain to the Information Commissioner’s
Office
Your rights explained
Right to Access
You have the right to access your personal data and details of the
purposes of the processing, the categories of personal data
concerned and the recipients of the personal data. Providing the
rights and freedoms of others are not affected, we will supply to
you a copy of your personal data. [You can access your personal data
by visiting https://www.cusecureserver.co.uk when logged into our
website.]
The right to rectification
You have the right to have any inaccurate personal data about you
corrected and, taking into account the purposes of the processing,
to have any incomplete personal data about you completed.
The right to erasure
In some circumstances you have the right to the erasure of your
personal data without undue delay.
Those circumstances include:
• the personal data is no longer needed for the purpose it was
originally processed
• you withdraw consent you previously provided to process the
information
• you object to the processing under certain rules of data
protection law
• the processing is for marketing purposes
• the personal data was unlawfully processed
•
However, you may not erase this data where we need it to meet a
legal obligation or where it necessary for the establishment,
exercise or defence of legal claims.
The right to restrict processing
In some circumstances you have the right to restrict the processing
of your personal data. Those circumstances are:
• you contest the accuracy of the personal data;
• processing is unlawful but you oppose erasure;
• we no longer need the personal data for the purposes of our
processing, but you require personal data for the establishment,
exercise or defence of legal claims; and
• you have objected to processing, pending the verification of
that objection. Where processing has been restricted on this basis,
we may continue to store your personal data.
We will only otherwise process it:
• with your consent;
• for the establishment, exercise or defence of legal claims; or
• for the protection of the rights of another natural or legal
person;
The right to object to processing
You have the right to object to our processing of your personal data
on grounds relating to your particular situation, but only to the
extent that the legal basis for the processing is that the data is
necessary for the purposes of the legitimate interests pursued by us
or by a third party.
If you make such an objection, we will cease to process the personal
information unless we can demonstrate compelling legitimate grounds
for the processing which override your interests, rights and
freedoms, or the processing is for the establishment, exercise or
defence of legal claims.
You have the right to object to our processing of your personal data
for direct marketing purposes (including profiling for direct
marketing purposes). If you make such an objection, we will cease to
process your personal data for this purpose.
The right to data portability
To the extent that the legal basis for our processing of your
personal data is:
(a) consent; or
(b) that the processing is necessary for the performance of our
contract with you
You have the right to receive your personal data from us in a
commonly used and machine-readable format or instruct us to send
this data to another organisation. This right does not apply where
it would adversely affect the rights and freedoms of others.
Right to withdraw consent
To the extent that the legal basis for our processing of your
personal information is your consent, you have the right to withdraw
that consent at any time. Withdrawal will not affect the lawfulness
of processing before the withdrawal.
The right to complain to the
Information Commissioner’s Office
If you consider that our processing of your personal information
infringes data protection laws, you have a legal right to lodge a
complaint with the Information Commissioner’s Office which is
responsible for data protection in the UK. You can contact them by:
1. Going to their website at: https://ico.org.uk
2. Phone on 0303 123 1113
3. Post to Information Commissioner’s Office, Wycliffe House,
Water Lane, Wilmslow, SK9 5AF
Contact us about your rights
For more information about how your rights apply to your membership
of the credit union or to make a request under your rights you can
contact us info@highlandcommunitiescu.org.uk We will aim to respond
to your request or query within one month or provide an explanation
of the reason for our delay.
Contact details of credit union
Highland Communities Credit Union Ltd
An Drochaid, Claggan, Fort William PH33 6PH
01397 700746
info@highlandcommunitiescu.org.uk
Changes to this privacy policy
We can update this Privacy Policy at any time and ideally you should
check it regularly www.highlandcommunitiescu.org.uk for updates. We
won’t alert you for every small change, but if there are any
important changes to the Policy or how we use your information we
will let you know and where appropriate ask for your consent.
B. How does it work?
01 Are members expected to save
regularly?
Yes. Credit Unions encourage members to save regularly, even if you
can only afford a small amount. By saving regularly, you can show
the Credit Committee that you can put away a regular sum of money,
and so are likely to afford to repay a loan.
02 How can I save?
You can pay in at any collection point, or by standing order mandate
direct from your bank account. (Standing Order mandates are
available from Collection Points or to
download from here)
03 How much should I save?
Members can save as much or as little as they can afford. The more
that you can save, the stronger your financial position will become.
Shares keep you prepared for an emergency, put a break on spending, and provide a safety margin above your loan repayments.
04 Can I withdraw my shares at any
time?
Normally it will take a couple of days to process a share withdrawal
but in some circumstances it may take longer so it is best to plan
ahead when you are wanting to make a share withdrawal.
Highland Communities Credit Union provides life savings insurance on your shares. It is also worth remembering that shares take time to build up, and Highland Communities Credit Union relies on people saving so that we can provide loans. The size of loan that you can get is dependent on the amount of shares that you have (see Loans section). Also, if you have a loan, then you will be required to retain a certain value of shares.
C. Loans
01 Can anyone get a loan from Highland Communities
Credit Union?
All members over the age of 18 can apply for a loan. You cannot get a loan if you are not a member, or
if you are under the age of 18.
02 How soon can I borrow?
You must save regularly for 10 weeks, or 3 months if paying by
Standing Order, before you can apply for a loan.
03 How much can I borrow?
You can apply for a loan
of up to 3 times the value of your shares (to a maximum of
£10,000).
04 What can I get a loan for?
Loans
must be for a “provident and productive” purpose. This can include:
TVs; cookers; fridge freezers; furniture; car tax / insurance; carpets; footwear; holidays; cars; electricity bills; telephone bills; car repairs; fuel; garden sheds; decorating; house repairs; TV licences; Christmas; school expenses; tools; washing machines; dental / medical bills.
Each member has their own priorities and the list above is not exhaustive.
05 How much will it cost me and how is
interest
calculated?
Highland Communities Credit Union charges interest each month on the
decreasing balance of the loan.
For loans under £5,000 interest is charged at 1.75% per month (23.1% APR).
For loans over £5,000 interest is charged at 1% per month (12.7% APR).
Instant Loans of up to £750.00 interest is charged at 3% per month (42.6% APR).
For secured loans see 09 What is a secured loan. Interest is charged at 0.5% per month (6.7% APR).
On the last day of each month, we calculate the interest to be charged based on your loan balance at that date. The interest is then added onto your loan balance.
When the Credit Committee calculates your repayment amount, they take into account the interest that will be added on. This way, you make the same repayment throughout the whole period of your loan. This repayment covers the amount of money that you borrowed, and also the interest that is due.
This table shows what repayments you would make for various sizes of loans over 1 year.
Amount Borrowed | Weekly (52 Weeks) | Total Repayable | APR | Monthly (12 Months) | Total Repayable | APR |
£300 | 6.41 | 333.19 | 23.10% | 27.94 | 335.20 | 23.10% |
£500 | 10.68 | 555.34 | 23.10% | 46.56 | 558.68 | 23.10% |
£700 | 14.96 | 777.43 | 23.10% | 65.18 | 782.16 | 23.10% |
£1,000 | 21.36 | 1110.68 | 23.10% | 91.69 | 1117.36 | 23.10% |
£1,250 | 26.70 | 1388.35 | 23.10% | 116.40 | 1396.70 | 23.10% |
£1,750 | 37.38 | 193.69 | 23.10% | 162.94 | 1955.39 | 23.10% |
£2,000 | 42.64 | 2221.36 | 23.10% | 186.23 | 2234.73 | 23.10% |
If you want to pay off your loan balance in full, then you can do so at any time. You will NOT be charged an early repayment fee, and your loan will cost you less, as you will only have been charged interest on your balances up to the date of repayment.
06 When do I start paying interest on my loan?
The first interest
will be added onto your loan
balance on the last day of the month your loan was granted. This interest is the interest due for the
following month.
07 What will the Credit Committee do?
The Credit Committee is composed of volunteers who meet once a week
to consider loan
applications.
When the Credit Committee receive your application, they will verify that you have completed the application form correctly. If we need to contact you to clarify any details, then we will do so.
The Credit Committee will look at how much available income you have to see whether or not you can afford the repayments. This helps to ensure that members do no get into debt that they cannot afford to repay, and by doing so, it safeguards members savings. Remember: you are borrowing the savings of other members!
The Credit Committee will also consider whether the length of the loan is acceptable. To decide this, they will look at how regularly you will have this expense. For example:
These are guidelines – you will not necessarily be refused a loan for a holiday just because you want to pay it back over 2 years. However, you might be asked to consider how you will pay for a holiday next year.
08 How long will it take to get a loan?
Normally loan applications are processed and paid out to you within
one week of applying. However, there are circumstances where this
may take longer so please try to plan ahead when applying for loans.
09 What is a secured loan?
A secured loan is where you borrow an amount less than the value of
your shares.
Some benefits of taking a secured loan are:
10 Is it best to borrow for one item
at a time?
Yes, this is the best way to borrow if it is possible. You can clear
one item more quickly than two or three and you will be charged less
interest,
as interest
is calculated on the reducing balance of your loan.
11 If I have an outstanding loan balance, can I borrow more
money?
Yes, this is known as a “top up” loan. When a “top up” loan application is considered,
the Credit Committee will take into account the outstanding loan balance plus the amount that
you want to “top up”. So if you have a balance of £200, and you want
to borrow another £500, the Credit Committee will treat the
application as a new application for a loan of £700.
As a general rule, the Credit Committee would like you to have repaid a substantial amount of your old loan before they consider a top up loan.
12 What is a loan agreement?
A loan
agreement is the legal document which outlines the terms of your loan.
It contains details of the amount borrowed, the date of the first
repayment, and the estimated finish date (assuming that you make
each repayment as agreed).
By signing this document, you agree to the terms set out in the agreement, including the repayment amount and frequency (eg. you agree to repay £10.00 every week).
Two signed copies of the agreement are printed and signed – one for you to keep for your own records and one for Highland Communities Credit Union to keep.
13 What happens if I fall behind with
my repayments?
If you fall behind, then we will send you a reminder, in case you
have overlooked your repayments.
If you fall behind with your repayments, then you should try to catch up as soon as possible, otherwise you will be paying interest on a balance that is higher than was expected.
Highland Communities Credit Union recognises that, in some situations, falling behind with your repayments is unavoidable. You may be on holiday and so miss a week or two at the collection point. The best thing to do in this circumstance is to pay extra money before or after your holiday to you bring you back in line.
If you fall into difficulty, then it is important that you contact Highland Communities Credit Union as soon as possible. We may be able to renegotiate your loan so that you do not need to repay as much each week or month.
If you become unemployed, then Highland Communities Credit Union may be a great benefit to you. If you have the money to clear your loan, then it might be a good idea to do so, which would enable you to get new, smaller loans as the need arises. These smaller loans will be more affordable if you have a reduced income.
It is important to keep your repayment record up to date, as if you fall behind then future loans may be restricted.
The Credit Control Officer is the volunteer who keeps track of members loan repayment records. If you fall behind, the the Credit Control Officer will send you a reminder, and ask you to contact Highland Communities Credit Union to see if we can help in any way.
Insurance
Life Savings Insurance
This is paid on all savings held by members aged 16-79. If a member
dies, their nominee receives any shares held in Highland Communities
Credit Union. In addition to this, they may receive an insurance
payment. The table below shows how much insurance will be paid out:
Age on the date of the deposit | Amount of insurance |
16-65 | 100% |
65-69 | 25% |
80+ | 0% |
Loan Protection Insurance:
Paid for all members aged 18-69 who have outstanding loans.
If a member dies while they have a loan outstanding, then the insurance will pay off the loan in full.
Summary of important exclusions for both Life Savings and Loan Protection Insurance (full policy available from the office?)
Pre-existing condition limitation:
Insurance will not be paid out where death results from an illness
or injury for which medical advice, consultation or treatment was
received within the 6 month period prior to the deposit of shares or
receiving a loan.
Insurance will not be paid where death is as a result of: