CREDIT UNIONS 

What is a Common Bond?
Isn’t my money safer in a bank?
Who runs the Credit Union?
Who owns NBCCU?
How many people are members of NBCCU?
Is my money safe?
What is an AGM?
Who are the Financial Services Authority (FSA)?
Who are ABCUL?
Are there any hidden costs?
I don’t live or work in North Birmingham, can I still join?
I have a complaint, how do I complain?
Why do I have to pay a joining fee?
Will my details by kept confidential?

SAVINGS
Do I get any interest on my savings?
Can I continue to save while I repay my loan?

LOANS
Are there any penalties if I want to pay off my loan early?
Do I need to buy insurance to cover my loan?
Is NBCCU insured?

JUNIOR SAVERS
I’m a Junior Saver, can I borrow money?
How do I withdraw money?
What happens when I’m too old to be a junior saver?

THIS WEBSITE
I’ve downloaded a file, why can’t I open it?
Why do the pages on the website look strange on my computer?
I can’t find the information I need on this website
Is this site safe for me to use?
Can I manage my Credit Union account on the internet?

About Credit Unions

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 where all the members live or work together in the same locality (NBCCU's Common Bond )
  
• Where all members are in the same profession or work for the same employer
• Where all members are in the same club or association

Isn’t my money safer in a bank?
Since July 2002 credit unions have been regulated by the Financial Services Authority (FSA) this is exactly the same organisation that regulates banks, building societies and other financial institutions. This means that all credit unions have to meet the FSA’s strict standards. Credit Unions are also members of the Financial Services Compensation Scheme (FSCS), so member’s savings are always protected, exactly the same way as they would be in a bank or building society.

Important information about compensation arrangements
We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a credit union is unable to meet its financial obligations. Most depositors – including most individuals and small businesses – are covered by the scheme.

In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor’s accounts with the credit union, including their share of any joint account, and not to each separate account.

For further information about the scheme (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website http://www.fscs.org.uk or call 0800 678 1100

Who runs the Credit Union?
Once a Credit Union has been established in the community by a ‘steering committee’, officers are elected from among the members to run the Credit Union.
All Credit Unions are registered in accordance with the Credit Unions Act 1979.

NBCCU is run by a volunteer board of directors.
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 that is submitted to the members at their Annual General Meeting.

Who owns NBCCU?
All the Members of the Credit Union are owners of the Credit Union. If you save with us, then you 'own' NBCCU.

How many people are members of NBCCU?
 At present NBCCU has more than 3,000 members. Membership is increasing on average by 70 per month

Is my money safe?
Yes! NBCCU is authorised and regulated by the Financial Services Authority Registered number: 213228
We belong to the Financial Ombudsman Service together with banks and building societies.
Your savings are insured at no cost to you.
A Supervisory Committee, who are Credit Union members, keep an eye on day-to-day management.
We are a member of the Association of British Credit Unions (ABCUL).
Annual audits by an independent auditor, who reports to our Annual General Meeting for members.
Annual Report & Accounts are always available.

What is an AGM?
Annual General Meeting – where members of the credit union have the chance to vote for the Directors and officers who will control the credit union on behalf of the membership. This is an important chance for members to be actively involved in the direction of their credit union. It is also an opportunity for members to discuss the development, growth and services of their credit union.

Who are the Financial Services Authority (FSA)?
This is the government regulator for all financial services providers including credit unions. www.fsa.gov.uk

Who are ABCUL?
The Association of British Credit Unions Ltd – the main trade association for credit unions in Britain. www.abcul.org

Are there any hidden costs?
There are NO hidden fees or costs involved in transactions with the Credit Union.

I don’t live or work in North Birmingham, can I still join?
There are 10 credit unions operating within the City of Birmingham. Most have either a residential or employment (or both) common bond. If you do not live or work in North Birmingham we will advise you of the credit union nearest to you. As credit unions are allowed up to 10% of their membership to live outside their common bond if there is no credit union in your local area we would hope to be able to accept you as a member.

I have a complaint, how do I complain?
All credit unions have a complaints policy, if you have a complaint about NBCCU, it should be put in writing to the Chairperson of the Board of Directors.
 
Why do I have to pay a joining fee?
Credit Unions exist for the benefit of their members; therefore each individual saver has to become a member and we have to charge a joining and an annual membership fee. This is passed to the Association of British credit Unions and NBCCU aim to keep the membership fee as low as possible.
 
Will my details by kept confidential?
Credit Unions are registered for Data protection and are bound by the terms of the Data Protection Act. All transactions are confidential. Every officer and volunteer who works in the Credit Union sign a declaration of confidentiality, so all members’ information is kept totally confidential at all times.

SAVINGS

Do I get any interest on my savings?
All members are part-owners of the credit union and share in its success. Instead of interest being paid, when the credit union is doing well a dividend is given at the end of each year. The more savings that you have, the more dividend you earn. At present the law allows credit unions to give up to an 8% dividend on your savings. Sadly not all credit unions are able to pay a dividend every year.

Can I continue to save while I repay my loan?
Yes, in fact we encourage all borrowers to continue saving while they pay off their loan. 

LOANS

Are there any penalties if I want to pay off my loan early?
No, you can pay off your loan early at any time with no penalties.

Do I need to buy insurance to cover my loan?
If you are under the age of 70 your loan is automatically insured by the credit union. This cost is not passed on to the borrower. You will be asked to complete a declaration of health when taking out the loan (some exemptions to the insurance do apply, please ask for more information when applying for your loan)

Is NBCCU insured?
Yes. Your savings are protected by insurance, which covers theft, fraud and misappropriation of funds in addition to cover for loans in the event of the demise of a member. All at no cost to you.

As with any other financial institution, if the Credit Union collapsed then funds from the Financial Services Compensation Scheme would ensure you would not lose any of your savings.


 

JUNIOR SAVERS

Can I borrow money?
Credit union members under the age of 18 cannot legally borrow money.

How do I withdraw money?
Withdrawals from junior accounts are also paid by cheque – this can be paid payable to your parent or guardian. The cheque can be paid into an account or cashed at the Allied Irish Bank in Wylde Green. Please specify which on the withdrawal application.

What happens when I’m too old to be a junior saver?
When you reach age 18 you can apply to become a full member of the credit union and change your junior account to an adult one. You can then take advantage of all the benefits of credit union membership

THIS WEBSITE