Thanks to Louis for sending in details of the Isle of Wight Credit Union. It’s a life saver for some and may be of interest to anyone who has problems obtaining services from conventional banks. Ed
Twenty Ventnor people belong to the Isle of Wight Credit Union which is a savings and loan society and is a co-operative. It is ten years old and has almost a thousand members all round the island . There is an office at 122 Pyle St Newport.
The IW Credit Union is Island based, is independent, and is one of hundreds of Credit Unions world wide. Credit Unions will open accounts for people who may not be acceptable to conventional banks, providing they are willing to save regularly and, who can then obtain loans for essential purposes.
All members hold one share minimum and have a vote to elect a board of Directors or other officers. A General Meeting is held every year to receive audited accounts and elect Directors and officers from among the members. All are volunteers.
Credit Unions to do not pay interest on savings but share out a ‘dividend’ at each year end dependent on any surplus which is obtained by charging interest on loans to members. (The nearest comparable system is a conventional Christmas Club). Every pound of a members savings counts as a share for the annual dividend.
Loans to members are made after a period of regular saving and can amount to at least two and a half times the total savings in the account. ( ie; if you have a £100 in savings you could borrow £250 without touching your savings, or pro rata). Interest on a loan is charged per month on the remaining balance at a rate usually well below general market rates. There is no charge for arranging the loan or for early repayment. Members own savings are held as guarantee for repayment while the member continues to save a regular amount and repays the loan. A quarterly statement is provided to each member and updates can be obtained over the telephone, in person, or by e-mail.
Payments into a members account can be made in the office at 122 Pyle St Newport, by postal order or by using any one of 30 PAYPOINTS around the Island.( PP costs 40p per entry) Some members working for the County Council or NHS have their savings made by payroll deduction, others have their benefits paid in directly from the DWP and then draw out what they need in cash.
The Credit Union is regulated by the Financial Services Authority, works under strict government guidelines and is audited annually.
All members savings are secured by a national credit union’s insurance policy indemnity and in addition, in the event of death, double the members savings are paid to dependents and all loans are cancelled (age limited to 70).
Junior saver accounts can be opened which qualify for dividend but cannot obtain loans till age 18.
Credit Unions provide loans only to their members and do not trade money with the commercial banking system. IW Credit Union maintains a holding account with the Co-operative Bank and the Unity Trust Bank both of which are also co-operatives.
The Isle of Wight Credit Union is sometimes used as an agent for distributing County Council or Government grants ie ; Energy conservation , Housing improvement.
To join the Isle of Wight Credit Union please call in or telephone the office 559100 between 10am and 2pm weekdays for an application form. The initial charge is £5 ( £1 share and £4 registration).
