What is a Credit Union?
What is a Common Bond?
What happens if I join the Credit Union and then later on I can no longer meet the Common Bond?
Where are the Credit Union's branches
Who runs the Credit Union?
What are the aims?
Will my money be safe?
How can I pay into my Savings Account?
How can I make withdrawals?
Can I apply for a loan?
How much could I borrow ?
What are the Repayment arrangements?
What will it cost me?
How does this compare to other lenders?
Is there any Insurance?
Are there any hidden costs?
What about confidentiality?
What can I do if I am unhappy about something?
What is in it for me?

What is a Credit Union?

A Credit Union is a democratic financial cooperative owned and controlled by its own members. All Credit Union members have something in common (the common bond) and every member has an equal vote in the running of the Credit Union.

Credit Unions are non-profit making financial co-operatives run by members, for the members, and offer a convenient savings and low interest loans service. Savings are kept and used within the community, giving us more power over the money in our pockets and more choices over where we spend it. This benefits local businesses and helps to strengthen the local economy from within Cornwall. It is an effective way of creating a pool of available money in a particular locality.

When we buy on credit we often limit our choices and end up paying high prices for the goods we buy. Instead of a constant money drain out of Cornwall in the form of high interest rates, bank charges, credit cards and mail order purchases, your Credit Union keeps the money circulating locally.

YOU can help YOUR local community and yourself to prosper.

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What is a Common Bond?

The Common Bond is the factor that unites every Credit Union member. A ‘Common Bond' is defined as:

•  an area in which all the members live or work together in the same locality

•  where all members are in the same profession or work for the same employer

•  where all members are in the same club or association

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What happens if I join the Credit Union and then later on I can no longer meet the Common Bond?

As long as you qualified for the Common Bond when you joined, you can usually stay a member even if you no longer meet the criteria.

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Where are the Credit Union's branches

Our main office, which is also the Truro branch, is at 11a Frances Street in Truro.

Opening hours in Truro are Tuesday, Wednesday and Friday 10 a.m. to 4 p.m., Thursday and Saturday 10 a.m. to 1 p.m.

Our branch in Porthtowan, at the Village Hall, is open from on Thursdays from 2 p.m. to 4 p.m.

Our branch in St. Agnes, at the Parish Rooms, is open on Fridays between 9.45 a.m. and 11.45 a.m.

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Who runs the Credit Union?

The Credit Union is run by a Board whose members are elected by the members at the Annual General Meeting. Vacancies can be filled by co-option until then next AGM.

Equal rights exist for every member, whatever their shareholding to use the services of the Credit Union, to work as a volunteer within the Credit Union, and (once aged 16 or over) to vote at Annual and Special General Meetings.

All Credit Unions are registered in accordance with the Credit Unions Act 1979.

All officers and volunteers sign a declaration of confidentiality, so all members' information is kept totally confidential at all times. A qualified auditor prepares the Annual Audit Report which is submitted to the members at the Annual General Meeting.

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What are the aims?

* Promotion of thrift among our membership.
* Creation of a source of credit at a fair and reasonable rate of interest.
* Use and control of members savings for mutual benefit.
* Training and educating our members to use money wisely and manage their financial affairs.
* Helping to reduce poverty within our community.
* Helping economic regeneration of our community.

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Will my money be safe?

We are regulated by the same banking authority as your high street branch, the Financial Services Authority. We are also members of the Financial Ombudsman Scheme and the Financial Services Compensation Scheme.

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How can I pay into my Savings Account?

Credit Unions encourage their members to save regularly, however small the amount. They operate friendly and accessible branches, at times and in places which are most suitable for their members. You can choose to save weekly or monthly. Savings can also be made by Standing Order from a bank account, and, if your employer runs this scheme, by payroll deduction.

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How can I make withdrawals?

Members can withdraw their Credit Union savings either immediately at any branch (for small amounts) or after a notice period, provided they are not pledged as security on a loan. However, you are encouraged to keep your savings intact to maintain your capacity to borrow and benefit from dividend payments.

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Can I apply for a loan?

We are now able to invite loan applications (Fast Track Loans) from all members, regardless of the time for which you have been a member or the amount of your savings. However, we offer preferential terms to those members who have been saving for 13 weeks (if saving weekly), or 3 months (if saving monthly) and are able to maintain savings of at least a third of their outstanding loan.

We have a Credit Committee who will decide whether to approve your application. The Credit Committee meets weekly and loans approved will normally be available for collection from the next day that we are open.

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How much could I borrow?

Loans are granted on the basis of your credit score and any credit report that we may choose to obtain, your savings record, your capacity to repay and according to the Loans Policy of the Credit Union.

For Fast Track loans, the maximum we would consider lending you is £600.

If you are a preferential borrower, the maximum we can consider is three times your savings. However, by law the maximum loan we are allowed to offer is £25,000, which would require savings of £10,000.

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What are the Repayment arrangements?

Repayments can be made at local branches, by Standing Order or, if your employer runs this scheme, by payroll deduction. The repayment period can be as long as 5 years and is negotiated with you to meet your own capabilities and the purpose of the loan.

You will be required to sign a legally binding agreement. Loans are funded by other members' savings, so failure to repay would lead to legal action being taken against you.

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What will it cost me?

Because Credit Unions exist only to serve their members, loan costs are only 1% to 2% per month on the outstanding balance. The monthly interest is worked out on the reducing balance of your loan.

Examples at 1% per month:

Your savings are protected by insurance which covers theft, fraud and misappropriation of funds. As any other financial institution, the financial services compensation scheme protects you from losing any of your savings. This is of course not likely to be needed but it does put people's minds at rest. in addition, subject to terms and conditions, we have insurance cover for your loan and savings in the event of your death, all at no extra cost to you.

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Are there any hidden costs?

If you apply for a loan, we may need to take out a credit report in order to assess your application. If we do so, there will be an administration fee of £10, which can either be added to the loan or paid at the time of application. Other than this, there are NO hidden fees or costs involved in transactions with the Credit Union. No penalty is charged for early repayment.

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What about confidentiality?

All transactions are confidential. Every volunteer who works in the Credit Union will treat all information as strictly confidential.

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What can I do if I am unhappy about something?

As a member of the Association of British Credit Unions, and part of the World Council of Credit Unions, Mid Cornwall Credit Union aims to provide members with quality financial services. We welcome an opportunity to put things right for members who are dissatisfied with our service. Members' feedback will be used to help improve services for all members.

A complaint can be received at any place that the credit union conducts business, by any officer or volunteer of the credit union. All written complaints should be addressed to the Complaints Officer, who will be responsible for investigating the complaint

We aim to resolve the complaint to the complainant's satisfaction as speedily as possible. Simple complaints will be resolved within one day, and, other than in exceptional circumstances, all complaints will be resolved within 8 weeks.

If you are still unsatisfied with the final response from the credit union, you would then have the right to refer the complaint to the Financial Ombudsman Service.

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What is in it for me?

The Credit Union is run by local people who understand local problems.

We provide

* a safe home for your savings where you may receive an annual dividend,
* access to low cost loans with less strings than most high street lenders and
* insurance at no extra cost to you

You can volunteer and help to run the Credit Union.

Joining the Credit Union is good for you and the whole community. The Credit Union aims keep the money in the local area, which in turn helps to boost local shops and businesses and in so doing this makes the local community stronger and more self sufficient. The nature of credit unions at large is for people to help people.

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