Ethical Loans and Savings

Loan Agreement

ATTACHMENT OF SHARES

All shares held in Share 1, or added to Share 1 after the loan date, equivalent to the loan or amount outstanding on the loan, whichever is the greater, and any such interest or expenses which may become due shall be attached (non-withdrawable) for the duration of the loan. Any shares held in Share 2 or Share 3 will be unattached (withdrawable).

DATA PROTECTION STATEMENT

In accordance with the principles of the General Data Protection Regulations, we will use your personal details for the purpose of managing your accounts with the Credit Union. Your personal details will be treated confidentially and will only be shared with other agencies for the purpose of debt recovery and/or credit referencing, for which purpose we hold the appropriate consumer credit license.

For our full Privacy Policy stating what data we collect and how we use it, please visit our website www.morayfirthcreditunion.co.uk or ask for a copy in the office.

TERMS OF THE AGREEMENT

1. “The Lender” will lend, and “The Borrower” acknowledges that they have received, the sum borrowed under this Loan Agreement. “The Borrower” will repay the loan, that is, the “Total Amount Owing” by the replacements set out in the ““Loan Details”” overleaf.
2. Until such time as the loan is repaid, “The Borrower” will save with “The Lender” the sum set out as above.
3. Interest will be charged monthly on the unpaid balance of the Loan and any unpaid interest at the rate set out in the ““Loan Details”” overleaf.
4. “The Borrower” has the right to settle this Agreement early, at any time, by paying in the full balance of the Loan and any unpaid interest outstanding. “The Lender” will, on request, provide “The Borrower” with a written statement of the sums which have been paid and any which remain outstanding under this Agreement.
5. “The Borrower” acknowledges that the details given on the Loan Application for this Loan Agreement are correct and will inform “The Lender” immediately of any change in financial circumstances, which may reduce their ability to repay the Loan, or of any change in their address.
6. If “The Borrower” fails to pay any amount due to “The Lender” under this Loan Agreement, or breaches any of its terms, “The Lender” has the right to demand early repayment of all or part of the balance of the Loan outstanding together with any unpaid interest. “The Lender” will give “The Borrower” written notice not less than seven days before taking any action to recover any such sum. “The Borrower” acknowledges that, if any loan repayments are not paid, or are paid after the agreed time, this may result in the “Total Amount Payable” under “The Loan Agreement” being greater than the sum set out in the ““Loan Details””.
7. “The Borrower” recognises this as a legally binding contract and that, if “The Borrower” fails to comply with any of its terms, “The Borrower” may be liable to further action, which may include court action.
8. “The Borrower” will be liable for any costs “The Lender” incurs in recovering sums due under this Agreement.
9. “The Borrower” assigns to “The Lender” as security for the payment of the Loan, interest and any costs payable under this Agreement all paid shares and payment on account of shares, which have been made or will be made in the future. “The Lender” has the right to set off or apply any such shares towards payment of these sums.
10. “The Borrower” agrees that a Certificate issued by the Secretary of the Credit Union shall be final and conclusive evidence as to the amount owed by “The Borrower” at any time.
11. Both parties hereby consent to registration of this Loan Agreement in the books of Council and Session for preservation and execution.

Loan Policy

Moray Firth Credit Union Ltd will make available lending products to meet member’s needs as required by and in accordance with the Credit Union Act 1979.

The Credit Union will base its lending decisions on an applicant’s ability to repay the loan (capacity) and the likelihood of the credit union receiving payment on time and in full (character). The Credit Union has an obligation to protect members’ savings when granting a loan and this dual responsibility is central to this Credit Union’s philosophy of co-operation between members. The Credit Union reserves the right to conduct credit reference checks before a decision is made on loan applications.

Credit Union Loans
Moray Firth Credit Union Ltd loans start from £50. To help the Credit Committee reach a decision on lending money they will need to see evidence of income such as:
• three recent and consecutive bank statements – paper copies
• three recent and consecutive wage slips – paper copies
• the income and expenditure of your household
• any award letters from DWP/PIP or any other evidence of income
• We will ask all members to sign a DWP form in the event it is needed within the term of the loan (except secured loans).
These documents should be included with the loan application.
To apply for a loan you must:

• Be aged between18 and 80 and be an existing member
• Not be in a current bankruptcy, DAS or Protected Trust Deed debt scheme

DWP / Universal Credit Claimants
• The maximum first time loan to DWP borrowers will be £300.
• DWP/UC claimants will be asked to sign a form so that the loan is registered with DWP/UC for repayment in the event of default.
Top Up Loans

• Top up loans will be allowed on an account after the minimum of 50% of the original loan has been paid off or at the discretion of the Credit Committee.
• Top up loans will not be granted if there have been missed payments on the original loan with no satisfactory explanation of the reason why.
• Top up loans will not be granted if the member has made no attempt to save during the period of their loan.
• Only two top up loans will be allowed in one year unless agreed by the Credit Committee.

Borrowers of £5000+
• Only available to regular members who have established a good savings and repayment record.
• Credit Committee may negotiate an interest rate with members and advise the Board at the next meeting, avoiding delays.
Regular Borrowers
• Borrowers who have saved and who have repaid more than 4 loans will be eligible for a lower rate of loan interest

IMPORTANT NOTICE

Moray Firth Credit Union Ltd reserves the right to suggest a reduced amount to borrowers from their original request.  The Credit Committee will give the reason why the decision was made.

The Credit Union reserves the right to limit the amount of loans per household. Because of GDPR, the Credit Union is not permitted to reveal what loans there may already be in the home. Existing loans in the home may impact on the decision on whether to grant another loan to another member of the same household

Loan repayments will be set between the member and the Credit Committee.  Should the member’s circumstances change, affecting the ability to maintain the agreed payment, the member should contact the Credit Committee as soon as possible to re-negotiate the terms of the loan.  In the case of non-payments and members disregarding any reminders, every effort will be made to recover the money, leading to court action if necessary. Any court charges will also be passed on to the member for payment.

The Credit Union will try to avoid such action and alternative additional advice will be given to members so that they are made aware of other financial services available to them.

All decisions on lending are at the Credit Committee’s discretion.

It may take at least a week for the Credit Committee to reach a decision on a loan as there may be a number of factors to consider. Once a loan has been approved, the Credit Committee will contact the member.

DEBT CONSOLIDATION LOANS ARE AT THE CREDIT UNION’S DISCRETION

Monthly interest is based on a reducing balance. Interest is calculated daily. There are no early repayment fees.