Safeguarding Your Money in The Credit Union
The credit union is keen to stress that the credit union is regulated by the Government through officials at the Prudential Regulation Authority . The Credit Union must submit its accounts, prepared by a Chartered Accountant to the Prudential Regulation Authority.
The Credit Union is required by law to have Fidelity Bond Insurance and cannot operate without it. This insurance protects the members savings from fraud by any of the Credit Union's officers or staff
Members can also make a complaint to the Financial Services Ombudsman if they are unhappy with any of the actions of the Credit Union.
The Credit Union is regulated by the Bank of England through the Prudential Regulation Authority and the Prudential Conduct Authority. It is required to contribute to a Government compensation scheme - The Financial Services Compensation Scheme (FSCS) which guarantees members savings up to £85,000. If the credit union fails or closes the Government will pay members ALL their savings within 7 days.
These 3 types of protection should give those who want to save safely the comfort to open a savings account with Cloughfern Credit Union. The accounts are also designed to cater for existing members who may also wish to put savings aside in a secure account.
Savings & Loans
To join the Credit Union requires 2 pieces of identification, one of which must be photographic, on completion of an application form, new members are charged an entrance fee of £4.
To be eligible for a loan, members must make 13 regular weekly payments, after which they can switch to fortnightly, monthly or pay by standing order or electronic transfer.
Loans are granted on the basis of members savings/repayment history and the amount they have saved. Gaps in payments/repayments will result in loans being refused.
Members first loans are restricted to twice their savings up to a maximum of £1500, subsequent loans are granted at a rate of three times savings. The overriding concern will always be the members savings/repayment record.
Christmas Savings Only Accounts
Cloughfern Credit Union now offers savings only accounts to existing and new members. These Christmas Savings Accounts allow individuals to save with the credit union until 1st November each year when all money saved will be released to the member.