Gloucestershire Credit Union

Transcription

1 Gloucestershire Credit Union Low cost loans......and a safe place for your savings. Gloucestershire Credit Union 107 Barton Street Gloucester GL1 4HR T:

2 What is the Gloucestershire Credit Union (GCU)? GCU provides a focal point for the community by bringing people together, to work alongside each other to provide their own financial support through a local savings and borrowing scheme. GCU offers convenient savings and loan facilities throughout the county at low interest rates to its members. Importantly, all members are able to have a say in how GCU is run. The three main aims of GCU are: To encourage its members to save regularly. To provide loans to members at very low rates of interest. To provide members with help and support on managing their financial affairs (if required). What are the benefits of GCU? It is an easy and convenient way to save and borrow. It offers very low cost loans. Insurance at no direct cost, so your savings are safe. How does GCU work? As a member you can make regular savings, depositing as little or as much as you wish. These savings then form a shared pool of money from which loans are made to members. When members have been saving for a certain period of time (usually about 12 weeks) they can apply for a loan from the pool. Interest on the loan is usually charged at only 1% per month on the monthly reducing balance - this equates to 12.68% Annual Percentage Rate (APR). The interest charged on loans is GCU s income.

3 If I got a loan from GCU? How much would I have to pay back at 12.6%APR Loan amount Interest Total due Weekly repayments Comparison with other lending Door step lending - 272% APR Loan amount Interest Total due High Street Credit - washing machine for 3 years at 29.9% APR Loan amount Interest Total due Illegal money lending All lenders must be licensed by the Office of Fair Trading(OFT). Illegal money lenders or loan sharks are usually not licensed and charge extremely high interest rates. They may: offer you a cash loan without any paperwork take your benefit or bank card as security not tell you when you will finish paying increase the amount you owe even though you are paying regularly threaten or use violence to get the money from you. Always check if someone offering you a loan is licensed by the OFT.

4 Who can become a member of GCU? The membership criteria of a credit union is called the Common Bond -something that applies to every member. GCU has recently expanded its Common Bond to include all those who live or work in the county. This means that anyone who lives or works in Gloucestershire can now be a member of GCU regardless of income, employment status or age. How can I join GCU? You will need to complete an application form (collect from one of our collection points or we can post one to you) and provide some ID. Credit Unions are required to meet all their members at least once so we tend to invite new members to bring their completed application and ID to one of our collection points. These are in accessible places and some of them are open on Saturdays. Sometimes we organise sign up events - look out for these in your area. If you are unable to get to a collection point then contact us and we will try to make alternative arrangements. How much do I have to save? However much you can afford. Getting into the habit of saving regularly is more important than how much. Will I get interest on my savings? GCU pays a dividend rather than interest. What s the difference? - the dividend is not guaranteed but GCU will pay a dividend if it has a surplus after all running costs have been paid.

5 How soon and how much can I borrow from GCU? We would expect you to save regularly for about 12 weeks before allowing you a loan. The size of the loan will depend on the amount you have saved, how much you need, what you can afford to repay, and will be linked to our rules on lending. Security and peace of mind GCU is a profit-sharing financial cooperative, is registered with the Financial Services Authority (FSA) and licensed by the Office of Fair Trading (OFT). You need to be assured that: We are covered by the Credit Union Act. We are independently audited every year. We are regularly monitored by the FSA. Your business is confidential to GCU and no-one else will have access to your personal information. Is GCU insured? GCU insures your loans and savings against fraud and theft. We provide life and loan protection insurance so your family is protected even if you pass away. There is no direct cost to you for this service and members can nominate a beneficiary for their savings. The life savings insurance means that if you pass away, your beneficiary could receive an extra amount in addition to the value of your shares. The loan protection insurance covers the amount outstanding on your loan (if you have one).

6 Who supports GCU? Registered Social Landlords, Churches, Community Groups, National Consumer Councils, Citizens Advice Bureau, Trading Standards, Police, Councils, etc. GCU collection points Collection points are in easily accessible locations where you can pay in your money and make requests for loans. Area Day Opening time Gloucester Tuesday 1pm-3pm 107 Barton Street Thursday 12pm-3pm Saturday 10am-12pm Phone number Brockworth Community Project Wednesday 1.30pm-3pm Gloucester City Homes Monday to Friday 8.30am-5.30pm The Gateway Matson Friday 10am-12pm Trinity Centre Matson Thursday 9.30am am

7 Area Day Opening time Cheltenham Cheltenham Borough Homes Coronation Square Area Office (From April 2012) Cornerstones Centre Monday to Friday Thursday 9am-5pm 11am-2pm Phone number Forest Two Rivers Housing Association Monday to Friday 9am-5pm Tewkesbury Severnvale Housing Association Tuesday to Thursday 10am-2pm Tewkesbury Library Monday 10am-1pm Cirencester Cirencester Library Monday 10am-1pm

8 Sponsored by Co-operative Futures Cottesway Housing Association Cheltenham Borough Homes Fair Shares Community Time Bank Gloucester City Homes Gloucestershire County Council Gloucestershire Housing Association Severn Vale Housing Society Two Rivers Housing Association