Log in | Create account

Credit Unions 

Affordable credit for residents  

  • Tired of the banks?
  • Do you want to be in control of your finances?
  • Do you need affordable credit?
Liberty Credit Union is committed to helping people within the local community, who live or work in the borough. A credit union can help you take control of your money by encouraging you to save what you can and borrow only what you can afford to repay.

  • A Credit Union is an organisation owned and jointly managed by its members which offers convenient savings and low interest loans.
     
    • 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)
     
    • It is easy and convenient way to save and borrow 
    • It offers very low cost loans 
    • Insurance at no direct cost 
    • It's a way to learn new skills 
    • A credit union can help to revive the local economy by keeping money in the community. Loans to Members can mean income for local shops and businesses
     
  • Churches, Community Groups, National Consumer Councils, Citizens Advice Bureau, Trading Standards, Police, Fire, Taxi Drivers and Local Authorities.
     
  • The members make regular saving, as little or as a much as they wish. These savings then form a common 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 charged at only 1 per cent per month on the monthly reducing balance. 12.68 per cent Annual Percentage Rate (APR).
     
  • People who join a Credit Union must belong to what is called a 'Common Bond'. This could be that you reside in a specified area, or you work for a particular employer or that you are a member of a club or association.

    Credit Unions welcome everybody from within the Common Bond regardless of income, employment status or age.
     
  • Whatever you can afford - £5 a week, £1 a week, 50p a week. The only requirement is that you save regularly.
     
  • Most credit unions expect you to save regularly for about 12 weeks before allowing a loan and any loan will be related to your savings in some way.

    The amount you will be able to borrow will depend on how much money you need, what you can afford to repay and the credit union's policies.

    In the early days the credit union will allow small loans, becoming bigger as the credit union gets bigger.
     
  • As a Credit Union grows, it may declare a dividend at the end of the financial year. It can pay a dividend of up to 8 per cent a year, although it will be unlikely to be able to afford as much as this during the first few years.
     
    • Credit Unions have to be registered with the Financial Services Authority 
    • They are covered by the Credit Union Act 1979 
    • They are independently audited 
    • They are regularly monitored by the Financial Services Authority 
    • Your business is private in the credit union because all members and officers who have access to personal information must act in a confidential manner at all times
     
    • They are insured against fraud and theft 
    • They provide life and loan protection insurance at no direct cost to the member payable to a nominated beneficiary 
    • The life savings insurance means that if you die, your beneficiary can receive up to twice the value of your shares 
    • The loan protection insurance covers the amount of your loan outstanding
     
  • For further information visit Liberty Credit Union at one of the following locations or contact them at the address shown.
     

Ray Descombes

Community Cohesion Team

Town Hall

1 Town Square

Barking

IG11 7LU

 

Phone: 020 8227 2032

Fax: 020 8227 2214

Email: ray.descombes@lbbd.gov.uk

Liberty Credit Union

Community House

19-21 Eastern Road

Romford

Essex

RM1 3NH

 

Phone: 01708 741 899

Email: libertycu@btconnect.com