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Credit union launches debit card

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  • Credit union launches debit card

    Credit union launches debit card


    Dr Gibbons (r) got behind the counter to help launch the new account

    A credit union has become the first in Wales to launch its own current account.
    It means members of the Llandudno Credit Union can now have a debit card, allowing them to pay for goods in shops and use cash machines.
    The credit union, which covers the Conwy area, has seen its membership jump to 3,000 as the recession bites.
    Its new current account is also being backed by the assembly government as a way to help low-income families.
    Officially launching the service, Social Justice minister Dr Brian Gibbons said this was the next step in helping develop Wales' credit union network.
    "Up and down the country people are struggling with the personal ramifications of the downturn and credit unions are to help," said the minister.
    Dr Gibbons said the groups could provide a "safe haven" for hard-earned savings, and a "fair and understanding hearing for a loan application".
    Payments
    The assembly government has invested £100,000 to help the Llandudno union set up the new current account.


    There are people who are on low incomes who tell us they have found it difficult to open a normal bank account


    Barry Roberts, manager, Llandudno Credit Union

    As well as offering a debit card to members, the union can now provide standing order and direct debit services, and the account can receive direct benefit or salary payments.
    There are now 30 credit unions in Wales, owned and run by their 45,000 members.
    Just like banks, savings are guaranteed by the UK government, and the groups are also under the scrutiny of the Financial Services Authority.
    But because they are run as co-operatives rather than for profit, it means any loans they make to members do not attract painfully high interest rates.
    "We have been attracting new members from all walks of life," said Barry Roberts, who manages the Llandudno union.
    "Obviously, there are people who are on low incomes who tell us they have found it difficult to open a normal bank account.
    "But there are also people who are just generally fed up with the service they've been getting from their high street branches."
    'Piggy-back'
    The new service has been setup with the help of the Co-operative Bank, which handles the technical side of issuing the debit cards and the electronic account management.
    "The credit unions are effectively piggy-backing on their system," added Mr Roberts.
    "So far, we've issued 50 cards as we get trained to use the system, and now we're officially open for business."
    But operating traditional banking services brings with it one dreaded draw back - bank charges.
    "Because we are a credit union, there are no overdraft facilities," explained Mr Roberts.
    "If there are insufficient funds to meet something like a standing order, we will be charged ourselves for that, and we have to pass it back to the members."
    But, the union says it has set up a system that allows them to text message members instantly to warn them if they are overdrawn.
    It is also pledging that any charges it has to impose should never be more than a maximum of £15.
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  • #2
    There are a number of larger CU's now offering full current account facilities now.



    The new service has been setup with the help of the Co-operative Bank, which handles the technical side of issuing the debit cards and the electronic account management.
    "The credit unions are effectively piggy-backing on their system," added Mr Roberts.
    "So far, we've issued 50 cards as we get trained to use the system, and now we're officially open for business."
    But operating traditional banking services brings with it one dreaded draw back - bank charges.
    "Because we are a credit union, there are no overdraft facilities," explained Mr Roberts.
    "If there are insufficient funds to meet something like a standing order, we will be charged ourselves for that, and we have to pass it back to the members."
    But, the union says it has set up a system that allows them to text message members instantly to warn them if they are overdrawn.
    It is also pledging that any charges it has to impose should never be more than a maximum of £15.
    #staysafestayhome

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Received a Court Claim? Read >>>>> First Steps

    Comment


    • #3
      Re: Credit union launches debit card

      Great....note the "never more than £15" comment. This being the case how come everyone else pays a lot more............... bloody banks............even charging the CU's who are non-profit making

      Comment


      • #4
        Re: Credit union launches debit card

        yep was just trying to find some info on what Co-op charges CUs for having these services.
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        • #5
          Re: Credit union launches debit card

          I for one woud'nt mind the CU charging me for unpaid debit cos I know that money ain't going to line the pocket of some fat cat or to fund 'free' banking for the better off.

          It would be going directly into the coffers to increase their ability to loan more money.........so attempting to go over the limit would at last be enjoyable...........perhaps I should say it will have a 'positive' effect

          Comment


          • #6
            Re: Credit union launches debit card

            Well actually, isn't it going to the co-op banks fat cats?

            if co-op charge the CU and they pass that on to you, which they have to do, isnt it still ending up in fat cats wallets ?

            Mr Pedelty shows how ethics can be good for your wallet too. Last year he was given a performance-related bonus of more than 100 per cent on top of his basic salary of £458,250 to make his total pay £1,054,005 last year. This was equal to more than a quarter of the Co-op Group board's overall pay.
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            • #7
              Re: Credit union launches debit card

              Originally posted by Amethyst View Post
              Well actually, isn't it going to the co-op banks fat cats?

              if co-op charge the CU and they pass that on to you, which they have to do, isnt it still ending up in fat cats wallets ?
              Yes What I meant is I wouldn't mind it if the charge in it's entirety was going to the CU & NOT the bank

              Comment


              • #8
                Re: Credit union launches debit card

                So, the effect of the new banking code (coming in in May) is apparently going to make things easier to access credit unions, but also removes some of the regulation surrounding them, and I fear taking them more into line with banks, however have only had a short read.


                These are the main points according to the BBA in July 08
                • Liberalising membership criteria and radically changing the "common bond", so that credit unions can provide their services to a wider range of people

                • Making it possible for groups, rather than just individuals, to become members

                • Allowing credit unions to pay interest on members' deposits

                • Removing the statutory limit on non-qualifying members

                • Allowing credit unions to charge the market rate for services such as chequebooks and money transfers.

                Changes planned for cooperatives:
                • Removing the £20,000 limit on risk share capital which is transferable, but not withdrawable.

                Changes planned for cooperatives and credit unions include:
                • Giving societies the flexibility to choose their own accounting year-ends

                • Abolishing the requirement to have interim accounts audited

                • Lowering the minimum age for being an officer of a society to 16

                • Bringing the fee for a copy of the society's rules up to date

                • Making it easier for members to dissolve a society, subject to safeguards.
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                • #9
                  Re: Credit union launches debit card

                  The total number of credit union members in Great Britain as at end December 2007 (based on the annual supervisory returns submitted by credit unions to the FSA) was 675,789.

                  There were only 2 registered in 2007(in england), 8 in 2006, compared to figures from 1997 to 2002 of 20 to 40 a year being registered.

                  reduction possibly linked to The Financial Services and Markets Act 2000 (Permission and Applications) (Credit Unions etc.) Order 2002 ?


                  Have been looking at White Rose Credit Union in Wakefield, as Tools has been considering it and will post fully later, and with 2 branches, charges and full banking facilities, it is a viable option - with the new banking bill it shouldnt be so restrictive with regards to who can join it - but is it a better choice than a bank ?
                  #staysafestayhome

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                  • #10
                    Re: Credit union launches debit card

                    Isn't any establishment that's not out to rip you off better than one that is namely a bank.....no brainer methinks

                    Comment


                    • #11
                      Re: Credit union launches debit card

                      Have asked ABCUL for list of all credit unions offering current CUCA administered by Co-op. At end of January 09 there were 18.


                      speedy...heres the list

                      Newry, Hartlepool, Llandudno & District, Just (operating in Shropshire), South Tyneside and two in London: Tower Hamlets Community and Lewisham, Capital (Edinburgh, Lothian and the Borders), Glasgow, Hull and East Yorkshire, Leeds City, 1st Class (serving Royal Mail workers across the UK), Glasgow-based Scotwest, Southwark (south London), White Rose (covering Wakefield, West Yorkshire, and West Yorkshire Police), Castle & Minster (Kirklees), Hampshire, and Voyager Alliance (serving the passenger transport industry in England, Scotland and Wales).
                      #staysafestayhome

                      Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

                      Received a Court Claim? Read >>>>> First Steps

                      Comment


                      • #12
                        Re: Credit union launches debit card

                        Lied it until that last line, but even thats better than £39 at a bank. Still doesn't actually mean it will be £15 though it may be less.

                        Comment

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