Loan terms and conditions

The information on this page is split into:

  • Loan terms and conditions

  • General terms and conditions which apply to all Capital Credit Union savings accounts

  • Data Protection

Applying for a loan from Capital Credit Union

Members of Capital Credit Union who are 18 years of age or over may submit loan applications to the credit union. 

Non-members may also apply to borrow.  As a condition of any approved loan, non-members will be required to become a member of Capital Credit Union and as such to meet and maintain minimum membership requirements in terms of savings.

We offer a variety of ways to apply for a loan from Capital Credit Union.  Current members who have registered for our secure online banking facilities can submit their loan applications online.  Loan applications can also be taken over the phone with our Member Services Team on hand to guide you through the application and answer any questions or queries you may have.  Alternatively, paper applications can be completed and posted in to the Capital Credit Union office or handed in to us.

In order to comply with money laundering regulations, before we provide any service, we may search the records of one or more registered credit reference agencies who will provide us with information from the Electoral Register and any other data appropriate to the search.

The approval process

Capital Credit Union is a responsible lender.  We give every loan application we receive careful consideration and make a decision based on the income and expenditure and overall ability to repay the loan.  We have a duty to each loan applicant to ensure that any loan approved, does not result in them facing financial difficulties and a struggle with repayments.  We also have a duty of care to all our members and have to ensure therefore that we take no undue risks with our members’ money.

It is important to highlight that as a financial organisation, we reserve the right to decline certain applications.  If we do reject an application, this will be following an assessment of the application by our personal lending team.  A loan refusal simply means that on this occasion we feel unable to offer the amount of loan that has been requested.  In some circumstances, we may offer a reduced amount.

Proof of income

When assessing a loan application, we may require proof of income and copies of recent bank statements. As a general rule, for loan applications between £1,000 and £2,500, we will be looking for one month’s proof of income and a recent bank statement.  For loans in excess of £2,500, two month’s proof of income and two months recent bank statements will be required.

A loan offer

Following the assessment and approval process, we may make a loan offer.  Any loan offer made by Capital Credit Union will be subject to:

  • The completion and return of a Loan Agreement
  • The completion and return as required of a Payroll Deduction Authority or Direct Debit instruction to cover loan and interest repayments
  • The loan offer remaining in place and Capital Credit Union not withdrawing it prior to funds being drawn down.

When borrowing from Capital Credit Union, you are signing a legally binding loan agreement.  Should you have any doubts as to the meaning of any part of the loan agreement, you should consider seeking independent advice from a solicitor, the Citizens Advice Bureau or other similar organisation.

Savings

For so long as any part of a loan or interest on it is outstanding, Capital Credit Union shall retain your shares up to the value of the outstanding loan. The value to be retained will be detailed on your loan agreement. You may not withdraw any such shares until the loan and interest on it is repaid in full.

'Shares' here means any paid-up shareholding (savings) you have in your Capital Credit Union Instant Access Savings account at the time of loan issue.

Interest

Interest on Capital Credit Union loans is not front loaded (added in full at the start of the loan).  Instead, interest is calculated on a daily basis on the decreasing loan balance.  We believe this is the fairest way to charge interest and should result in you paying back less interest over the course of the loan term.

Interest will be payable on a loan, or any part of it as is advanced, from the date of the advance. Interest rates are fixed at the time of borrowing and the interest rate to be charged will be stated clearly on your loan agreement.

For all credit union loans, the maximum interest rate we are permitted to charge is 3% per month on the outstanding loan balance. This equates to an Annual Percentage Rate (APR) of 42.6%.

Loan repayments

In signing your loan agreement you are agreeing to repay the loan, plus interest in instalments by either payroll deduction or Direct Debit.  Unless otherwise agreed between us, the whole of each payroll deduction or Direct Debit may be applied towards the repayment of the loan and the interest due on it.  As the lender, we are authorised to debit the account with the payments specified in the loan agreement until all monies due (including interest to the date of closure) have been repaid.

For members repaying their loan by payroll deduction, should you cease to be employed by a select partner employer during the loan repayment period, you must make arrangements to continue to repay the loan by Direct Debit.

Payment holidays are not permitted for any of our loans.  Deferral of payments at the start of a loan are also not permitted.

Loans may be repaid in full at any time with no early repayment penalties.  Additional payments to reduce the outstanding loan balance can also be made at any time without any penalties or charges.

Additional borrowing

When you top-up a loan, we don’t actually add money to it. Instead, we set up a new loan for the remaining balance and the extra amount you want to borrow. Then we pay off your old loan from that total, take a £50 administration cost from your savings secured against the loan and transfer the new amount into your account.

The new loan may have a different interest rate from your initial loan, and the term might be different too. This may mean that you could pay more or less interest than before.

Default

Should you fail to make payment of any amount due to the credit union, or should your employment end for whatever reason, or should you set up a Trust Deed or become bankrupt, the entire balance outstanding will immediately become due and payable together with all the interest that would have been payable if the loan agreement had run its full term.

As borrower, you assign to Capital Credit Union (the lender) all paid shares and payment on account of shares held with the lender which the borrower has now, or which the borrower may have in the future as security for payment of the balance outstanding and all costs, expenses and charges incurred by the credit union in connection with the loan, and the borrower authorises the credit union to apply any or all such paid shares or payment on account of shares towards the satisfaction of any amount which the Borrower may owe. 

As borrower you are advised that the loan agreement is a legally binding contract and that if you fail to comply with any of its terms, you may render yourself liable to further action, which may include court action to obtain repayment of all sums due under the loan agreement.  In cases of default, as borrower you should also be aware that the credit union may seek to recover funds due via any Department for Work and Pensions benefit payments which you may receive.

Termination

As lender, Capital Credit Union may terminate the loan agreement and demand immediate repayment of all sums due in respect of the loan agreement after giving any written notice required by law if:

a) The borrower shall fail in any material respect to keep any part of the loan agreement.
b) The borrower shall have deliberately given false information or given inaccurate information in connection with the loan agreement or any other credit agreement between the borrower and the lender.
c) The borrower shall be the subject of a court action which has the effect of taking away from the borrower’s control of the whole or a substantial part of the borrower’s assets.
d) The borrower shall become incapable in law of managing their own affairs.
e) The borrower shall either be declared bankrupt or grant a Trust Deed for their creditors.  In such case all the interest that would have been payable if the loan agreement had run its full term shall become payable forthwith.

Should the lender terminate the loan agreement or should the borrower default, the lender is entitled to the repayment of the whole sums due under the loan agreement and may retain monies held by the lender for the borrower in any other type of account and apply the said monies held on or towards payment of the balance outstanding in terms of the loan agreement.

Cancellation

Loan agreements may be cancelled within 14 days after the loan is advanced to you by:

(i) telling us you want to cancel it (for example by telephone) within that 14 day period, and
(ii) giving us written confirmation of cancellation within 5 working days of the initial cancellation request.

There is no penalty or charge for cancellation, however the loan must be repaid in full together with all unpaid interest which may have accrued. Interest will run from the date of loan issue until the date of cancellation.

Disclosure

Capital Credit Union is a data controller of the information provided on loan application and other forms in terms of the Data Protection Act 2018 as amended.  As part of the processing of any loan application and in order to comply with Money Laundering regulations, before we provide any service, we may search the records of one or more registered credit reference agencies who will provide us with information from the Electoral Register and any other data appropriate to the search.  The agency will keep a record of that search.  This may be used by other lenders when processing future applications for credit you may make.

Information held about you by the credit reference agencies may already be linked to records relating to one or more of your partners.  Where appropriate, any loan applications submitted may be treated as financially linked and your application may be assessed with reference to any ‘associated’ records.

In addition, if the application is successful, details of how you repay this agreement may be provided to the credit reference agency who will make this available to other lenders who may use the information for credit assessment, tracing of absconders and fraud prevention.

We may also consult other credit unions and will take into account, information concerning your employment prospects of which we become aware.

If your loan application is successful, your details will be held by the credit union to enable your loan to be managed.  This information may be shared with other credit unions to protect the credit union’s assets and to help prevent fraud.  Details of any financial transactions involved (such as payroll deduction) will be made to the company/organisation concerned.

In the event that you default on your loan or any terms and conditions in relation thereto, details of such default or defaults will be passed to other credit unions, debt recovery agencies and courts.  In such circumstances, it is understood that the lender may disclose details of the borrower’s account and any matters relating to the account to any credit reference agency and to any individual, individuals or organisations for this purpose registered by the lender with the Data Protection Registrar. 

Collection and use of personal information

Capital Credit Union will not collect any personal information about you on this website without your consent. We will let you know what we intend doing with your information before collecting it, so that you can decide whether or not to furnish that information to us.

Any information which is provided by you will be treated with the highest standards of security and confidentiality and in accordance with the terms of the Data Protection Act 1998, Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the Protection of Individuals with regard to the Processing of Personal Data and on the Free Movement of Such Data, and any implementing and/or amending legislation as may be adopted in the United Kingdom from time to time.

If at any time after giving us personal information you decide that you no longer wish us to hold or use this information, or in the case that the information becomes out of date, you are free to notify us, and we will remove or rectify the information within a reasonable time and in accordance with legislative requirements.

You acknowledge and agree that in certain circumstances we may be obliged to disclose personal information relating to you to third parties, for example, in order to conform to any requirements of law or to comply with any legal process, as well as to protect and defend the rights of property of the credit union, our licensors and/or our other customers.

Telephone calls may be monitored or recorded to ensure that we carry out your instructions correctly and to help improve the quality of our service and in the interests of security.

Member care

Capital Credit Union is committed to the provision of service of the highest quality for its members.  In the event however, that a member is dissatisfied with any aspect of this service, we will endeavour to resolve any complaint as effectively and efficiently as possible.  Capital Credit Union is also a member of the Financial Ombudsman Service, an organisation which has been set up by law to help settle individual disputes between consumers and financial firms.

Further information on the Financial Ombudsman Service can be found here. 

Financial Services Compensation Scheme

Capital Credit Union is a member of the Financial Services Compensation Scheme (FSCS) which provides a safety net if a bank, building society or credit union should fail. 

Further information on the scheme can be found here.

General terms and conditions which apply to all Capital Credit Union savings accounts

General Membership Terms and Conditions

Please ensure that you read both the general terms and conditions and the specific terms and conditions for the savings account(s) that you are looking to open. The terms and conditions described below apply to members of 16 years of age and above.

To be eligible for membership of Capital Credit Union you must live or work in our common bond area (see our website for the latest details).

  •  All members of Capital Credit Union must have an Instant Access Savings Account and maintain a minimum balance of £1 in it at all times. The £1 is held as a non-refundable deposit. The non-refundable deposit will be used to: contribute to the alleviation of poverty within the community; and/or to contribute towards the economic regeneration of the community, upon you leaving Capital Credit Union. There is no minimum duration for this account.
  • You can save any amount from £15-£1,500 per month and your savings are protected by the FSCS scheme up to £85, 000. For further information about the scheme (including the amounts covered and eligibility to claim) please call us on 0131 225 9901 or ask at our office, visit the FSCS website www.fscs.org.uk or call 0800 678 1100. Any deposits made may be subject to money laundering verification.
  • We have the right to suspend your account if we suspect fraudulent activity.
  • Your account is for personal use only. If you need an account for business purposes please request details of the appropriate business account from us.
  • You must call us on 0131 225 9901 or write to us at Capital Credit Union ltd., 62 Hamilton Place, Edinburgh, EH3 5AZ immediately on any change of name or address, change of e-mail address or change of telephone or mobile number. If you do not do this we may charge your account with the cost of locating you. Proof of change of name or address may be required.
  • Statements are available on request. We will provide statements either by post or via the secure login area of our website. You must inform us immediately of any incorrect item on your statement.
  • You have a right to cancel your account 14 days from our receipt of your signed agreement or when you have started to transact on the account. You can cancel by writing to us at Capital Credit Union ltd., 62 Hamilton Place, Edinburgh, EH3 5AZ. You will have to repay us any amount you owe us including any interest and charges.

Deposits

Money can be paid into your accounts in the following ways:

  • By Direct Debit (it is your responsibility to ensure that the bank details provided are correct)
  • By Payroll Deduction (from participating partner employers)
  • By Benefit payments
  • By Cheque payable to Capital Credit Union only
  • By Debit Card


Direct Debit payments

There is a two day clearing system in place for all Direct Debit payments. This is to ensure that the payment clears and is not returned unpaid by your bank. Funds will be placed in your Instant Access Savings Account for this period and as such will accrue dividend. It is your responsibility to ensure that the bank details provided are correct.


Dividend payments and tax declarations

Dividend payments, as referred to in the product terms and conditions below, are automatically added to your account savings balance. Payments are made without the deduction of income tax and members should therefore declare dividend payments to Her Majesty’s Revenue and Customs (HMRC) as part of any tax return submissions. Please contact HMRC for advice.

  • The dividend will be paid annually and gross of tax and is subject to surplus and approval by members at the AGM (not guaranteed).
  • The dividend is declared at the Annual General Meeting, to which all members aged 18 and over are invited.
  • Dividend or interest will only be paid to those in membership at the time the dividend is declared or when interest is due to be paid.
  • You are only eligible for a dividend or interest if the dividend or interest value is over £1.
  • Accounts may include dividend or interest but not both.
  • Dividend payments are not taxed at source, therefore you may be liable for taxes or costs that are not paid by or via us e.g. higher rate tax.

For accounts that may attract interest additional terms and conditions may apply.


Withdrawals

Money can be withdrawn from your accounts in various ways:

  • By BACS transfer to another bank account – Please note that a BACS transfer to another account may take up to 3 working days
  • By transfer to another Capital Credit Union account
  • By loading onto a pre-paid card and withdrawing at an ATM or ‘cash back’ in a shop


Annual Membership Fee

As we are a financial co-operative, the success of Capital Credit Union lies with its members and their use of the products and services on offer. If you are actively using any of your accounts, then there is no annual membership fee. An annual membership fee of £5 may be charged on an account when there has been no activity on the account for a period of 12 months and the account balance is less than £25. Such an account will be deemed to be dormant. The annual membership fee is subject to change by agreement of the membership at the Annual General Meeting or any Special General Meeting called for this purpose.

Stopping payment or changing your deposit

If you want to cancel or change a direct debit or similar arrangement, you are required to maintain any loan or budget payment arrangements that you hold with us.

For your protection, we reserve the right to suspend access if:

  • We suspect fraud or money laundering
  • Incorrect customer security details are used to attempt to access your account.

We may make changes to this agreement at any time. If any changes are made, we will notify you personally via letter or email at least 30 days before we make the change. At any time up to 60 days from the date of the notice you may, without notice, switch your account or close it without having to pay any extra charges or forfeit any dividend for doing this.

Complaints

If you are not satisfied with any aspect of our service or products, you can tell us about your concern in the following ways:

  • Visit our office and speak to a member of staff. For details of the opening times, please call us on 0131 225 9901 or visit our website www.capitalcreditunion.com
  • Write – address your letter to Complaints, Capital Credit Union, 62 Hamilton Place, Edinburgh, EH3 5AZ
  • Telephone – Please call 0131 225 9901 to speak to a member of our Member Services Team who will be pleased to help you.
  • You MUST give the Credit Union chance to resolve any complaint before taking your issue further.

Capital Credit Union is a member of the Financial Ombudsman Scheme. If you’re not satisfied with our response you may contact the Financial Ombudsman.

  • Write to The Financial Ombudsman Service, Exchange Tower, London E14 9SR
  • Call 020 7964 1000 (switchboard), +44 20 7964 1000 (for calls from outside the UK), 020 7964 1001 (main fax)
  • Email: complaint.info@financial-ombudsman.org.uk


Data Protection

Capital Credit Union is a data controller of the information provided on application and other forms in terms of the Data Protection Act 1998 as amended. This information will be used internally by the credit union in order to process your membership and other entitlements.

In order to comply with money laundering regulations, before we provide any service, we may search the records of one or more registered credit reference agencies who will provide us with information from the Electoral Register and any other data appropriate to the search. The agency will keep a record of that search. This may be used by other lenders when processing future applications for credit you may make.

Information held about you by the credit reference agencies may already be linked to records relating to one or more of your partners. Where appropriate, any loan applications submitted may be treated as financially linked and your application may be assessed with reference to any ‘associated’ records.

In addition, if the application is successful, details of how you repay the agreement may be provided to the credit reference agency who will make this available to other lenders who may use the information for credit assessment, tracing of absconders and fraud prevention.

If your loan application is successful, your details will be held by Capital Credit Union to enable your loan to be managed. Details of any financial transactions involved (such as payroll deduction) will be made to the company/organisation concerned.

In the event that you default on your loan or any terms and conditions in relation thereto, details of such default or defaults be passed to debt recovery agencies and courts. In such circumstances, it is understood that the lender may disclose details of the borrower’s account and any matters relating to the account to any credit reference agency and to any individual, individuals or organisations for this purpose registered by the lender with the Data Protection Registrar.

Members of Capital Credit Union can opt in to receive information about the credit union, its products, services, promotions and developments as well as account statements.

Members will receive an annual statement delivered via post or soft copy, whichever is their chosen method of communication.


Instant Access Savings Account terms and conditions

  • The Instant Access Savings Account is the primary savings account operated by the credit union. Under the terms of membership, all members of Capital Credit Union must open an Instant Access Savings Account. The minimum account balance is £1.  
  • Regular payments must be made into the account by payroll deduction if you work for one of our sponsoring employers, by Direct Debit or by Benefits. A minimum of £3 per week (£15 per month) must be paid into the account.
  • The requirement for regular savings into the account is waived for members who have set up regular payments into a Capital Credit Union Cash ISA or Premier Savings Account. Additional deposits can be made into the account by cheque or debit card deposit. Cheque deposits require five full working days for clearance from the date of deposit.
  • Withdrawal or transfer requests can be submitted at any time.
  • Daily cut off times are in place and, as long as you meet the deadline for a particular day, your withdrawal request will be processed that day and the funds paid into your nominated bank account, appearing as cleared funds within two to three working days.
  • Loans from Capital Credit Union will be secured against the savings held in this account.
  • An annual dividend may be paid, gross of tax, on all sums deposited in the Instant Access Savings Account, subject to surplus. Any dividend payment is based on your lowest monthly balance.
  • The dividend rate to be paid will be recommended by the Board of Directors and approved by the members at the Annual General Meeting each year.
  • Any dividend due will be paid into the account following the Annual General Meeting.
  • Should you cancel your membership of Capital Credit Union before our AGM is held in January, the funds in your Instant Access Savings Account will be paid out as part of our standard procedures. In these circumstances, no dividend will be payable.