• Members who save regularly for 8 weeks and contribute £50 or more in savings are eligible to apply for a loan. The amount which can be applied for is in relation to the LCCU Loan Policy, which is reviewed annually by the Board of Directors.

• Loans are issued on a first-come/first-serve basis at any given time a request for a loan is
  made. In addition, members are required to undertake an interview with the loan Committee to establish their creditworthiness. The applicant (and if required a guarantor) must sign the loan application forms.

• All loans must be repaid within the duration agreed by the Loan Committee in line with the current Loan Policy.

• Loan applications are considered by the Loan Officer/Credit Committee. Following approval of
  the Loan, members can receive the funds by their preferred method of payment.

• The Loan Policy may change as circumstances change within the financial management of the LCCU. Members who default in repayments will be contacted over a reasonable period of time and options may be considered to help those facing difficulties. Failing these options the necessary litigation will be made to achieve repayment.

• Loans wherever possible will be issued within seven working days of Loan Committee approval. Repayments will be expected weekly or monthly as detailed and agreed in the member's loan application.

• The current interest rate on all loans is calculated on the outstanding balance and is charged at a rate of 1.5% per month (equivalent to 19.56% per annum). This is comparative to most high street banks, the difference being that LCCU provides a personal touch in assessing each person’s situation on their own individual merit. There are also no early repayment fees or hidden charges and the interest is only charged on members’ reducing balance – not on the total amount borrowed.

• Defaulting on loans - If a member defaults on their loan repayment agreement, there is a 3-stage process in place:
  • Stage 1 – Member is informed by post and asked to contact the office if they find
  themselves in financial difficulties
  • Stage 2 – Member written to after a month and informed that their savings will be
  transferred as part of the Loan payment
  • Stage 3 – Members issued with a letter informing them they will be taken to the
  small Claims Court

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The Credit Union is here to help members to get out of financial difficulty, not to add to it. It is therefore important that members get in contact as soon as possible if they start to struggle with their loan repayments.

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• Data Protection – The LCCU has a responsibility to comply with the new Data Protection rules, General Data Protection Regulation 2018 (GDPR). As a result, members are not able to access information on behalf of friends or family members without written or verbal authorisation.

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Interest:

• The interest charged on a loan is 1.5% per month on the outstanding balance. (19.56% per annum).

• The Credit Union will endeavour to pay members a yearly dividend on their investment but this cannot be guaranteed as it depends on the success of the Credit Union trading position during the financial year.

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Insurance:

• The Credit Union offers Life Insurance on savings and Loan Protection Insurance on Loans for members who qualify. This will be at no additional cost to its members. The Credit Union is required by law to take out Fidelity Insurance, in order to insure against fraud and dishonesty by Officers and Directors of the Credit Union.

• The Registrar of Friendly Society monitors the activities of your Credit Union and its Directors regularly.

• Quarterly statements and audited accounts have to be submitted in order to protect your interest.