Glad to see that we can now view the rates for our reviews. Maybe next time Ciao should test the new...
Glad to see that we can now view the rates for our reviews. Maybe next time Ciao should test the new system before installing it?
Member since:21.10.2000
Reviews:938
Members who trust:330
I have been a member of my local credit union, Walsave, since it began over three years ago, as both a saver and a borrower.
I joined via my then employer, Walsall MBC, who were sponsoring the setting up of the Credit Union. The authority initially paid the salary of the Credit Union manager together with providing the office space free of charge.
The whole thing has grown rapidly and now pays its own manager plus two further staff. It has also encompassed other areas to increase the number of members – South Staffs Water Works and Neighbourhood Committees for example.
You can borrow up to four times the amount of your savings and set a monthly repayment to repay the loan within 2 years. You can repay as fast as you wish but two years is the maximum length of any loan. You must also continue to save as you repay the loan, but this need only be the minimum £10 per month. The savings are used as collateral for the loan.
They are currently introducing an optional insurance on any loan taken out, to cover redundancy, illness etc.
You can withdraw from your savings whilst repaying a loan but only if the amount of the savings is higher than the amount outstanding on the loan. You can then withdraw the difference between the two.
The interest rate is on the loan is calculated on a daily basis and equates to 1% per month. You can repay further amounts at any time, thus giving you total control over the amount you owe. Once you have paid off a third of the loan you are allowed to take out top up loans up to four times the amount of your current savings.
There is a dividend paid out annually to members based on how well the union has performed during the year. This is capped at 8% by law, and is paid on the average savings of the member over the year.
The Credit Union also provides free life insurance so that if a member dies any outstanding loan balance is written off. You can also sign a form to say who you would like to receive the balance of your saving s in the event of your death.
There are various committees consisting of members of the Credit Union who approve new members, loans etc and who make the decisions about the running of the Union. Anyone is free to join any of these committees providing they are prepared to sign a declaration of confidentiality of course.
This way the Credit Union is run by it’s own members for the benefit of the members. The interest paid on loans is redistributed to savers in the form of the dividend once deductions for salaries and administration have been made.
Enquire at your local council offices or citizens advice bureau for further details.
How helpful would this review be to a person making a buying decision? Rating guidelines
Advantages: Low cost loans for regular savers, free insurance on both savings and loans. Disadvantages: Maximum repayment for loans is 3years and car loans 5 years
kimberley13 30.10.2003 ·
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Ciao members have rated this review on average: helpful
Review of Credit Unions
Advantages: Low cost loans for regular savers, free insurance on both savings and loans. Disadvantages: Maximum repayment for loans is 3years and car loans 5 years
kimberley13 30.10.2003 ·
Read review
Ciao members have rated this review on average: helpful
Review of Credit Unions
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