Credit Union

What are Credit Unions?

A credit union is a community based financial co-operative whose members share a common bond. In the case of M for Money Credit Union, the 'common bond' is that all members must live and/or work in the borough of Harrow and Hillingdon.

Credit Unions are not for profit organisations, set up, owned and managed by their members.

The main reason fo setting up a credit union is for members to pool resources (money) to provide affordable credit and loan facilities to members.

Credit Unions also promote a savings culture amongst its members, as money given out as loans is the money saved by members (referred to as shares).

What makes Credit Unions different?

Credit Unions differ from other financial institutions in many important aspects, such as:

• Being governed democratically by its members through a Board of Directors elected by the members from within the membership.

• Granting equal rights to all members - credit unions operate on the principle of one member one vote.

• Being part of a well-established co-operative movement, with national and international experience of providing financial services.

• Offering individuals control over their finances and encourage self-sufficiency among members

• Always putting the interests of members first, rather than the interests of external or third parties.

• Being subject to stringent regulation by the Financial Services Authority (FSA) in the same way as banks and building societies.

• Having legal limits on the interest rates they can charge on a loan (currently 2%).

• Giving local people the opportunity to invest their savings ethically for the economic and social benefit of their community.

How Do I Open an Account?

Download forms or contact their office.

Anyone who joins the Credit Union will be required to provide proof of identity.

All members are expected to save on a regular basis.

How can I Pay into M for Money?

By a deduction from your payroll if you work for Harrow Council, Hillingdon Council or Hillingdon PCT.

By standing order from your bank.

By using a Pay Point card.

How do I get My Money Out

If you wish to withdraw your savings sign a withdrawal form and M 4 Money will send you a cheque or for a small fee you can have a BACS transfer.

What Services Does it Provide for Members?

M for Money Credit Union provides a number of savings accounts for its members to help them manage their expenditure more effectively.

• A basic savings account which links to the value of the loan that a member might want. Saving in this account must be kept up to date even when a loan is being repaid. The savings in this account may not be withdrawn until any outstanding loan has been repaid however it can be used to repay the loan when it is the same size as the loan or larger.
• A Xmas savings account which is repaid to members during the last week of November each year.
• A Holiday or special occasions account.
• Great value loans with interest charged at a maximum of 2% per month of the outstanding balance. This results in you paying £13.4 in interest if you borrow £100 and repay it over 12 months.
• All members up to the age of 65 get free loan protection and life savings insurance so the debt dies with the debtor.

Who runs the Credit Union?

The Credit Union is run for its members and by its members.

A Board of Directors is elected from within the membership of the Credit Union. This usually takes place at an Annual General Meeting open to all members of the Credit Union.

Elections are held on a one-member, one-vote principle, regardless of share size.

The Credit Union is audited by independent certified auditors and authorized and regulated by the Financial Services Authority.