Frequently Asked Questions

A Credit Union is a non-profit making financial co-operative owned and controlled by its members through the purchase of shares in the business.

(a) The promotion of thrift amongst its members.(b) To enable its members to obtain loans at a fair and reasonable rate of interest.(c) The use and control of members' savings for their mutual benefit.(d) The training and education of members in the wise use of their money.

Yes Credit Unions are governed by an Act of Parliament through the Credit Union (Northern Ireland) Order 1985 and controlled through the Registrar of Companies. Credit Unions and Industrial and Provident Societies Branch of the Department of Enterprise, Trade & Industry.

Membership is open to individuals within a 'common bond'. (A Credit Union common bond is a bond that binds all members together.)

Yes. They can become junior members until they are 16 when they have full rights, but they can not become a committee member until they are 18.

(a) By completing an aplication form (proposed and seconded by existing members). (b) Paying a small joining fee. (c) Buying at least one £1 share. (d) Agreeing to abide by the rules of the Credit Union.

There is no set rule.  However, loans may be granted on the regularity and amount of savings. Members should save at least one pound per week while repaying a loan. This helps to increase the member's borrowing power and also helps the Credit Union to grow.

Yes, it is known as a dividend. After all the expenses have been paid and allowing for a tranfer of assets to maintain a General Reserve at a prescribed level, any surplus may be given back to the members as a dividend. By law every Credit Union must establish a General Reserve for emergencies, etc. In the early years of a Credit Union dividends may not be paid until the General Reserve has been built up.

If a dividend of at least 3% has been paid, any remaining surplus can be given to charitable, social and cultural purposes.

Yes, withdrawls are usually paid out to members by cheque after a week's notice, but Credit Unions can sometimes require up to 60 days notice. Remember that withdrawal cannot be granted if by doing so a member's shareholing would be less than the amount outstanding on an existing loan.

A copy of the model rules of the UFCU can be inspected at any time on request from a member. A copy can be purchased at the cost of £1.

By a committee, working under the Credit Union (NI) Order 1985 and the model rules of the Ulster Federation of Credit Unions. This committee is elected by members at the AGM of the Credit Union. No one can become a member of the committee if they are an undischarged bankrupt or have convictions for any sort of dishonesty.

Yes, by law, each year every Credit Union must take out Fidelity Bond Insurance. This bond covers any act of embezzlement of theft by a member or members of the committee or anyone acting on their behalf.

Yes, each year , each UFCU Credit Unions pays a small fee for every adult member on its books.

Administration costs including promotion and development of new Credit Unions and the support of development of existing ones. The UFCU is constantly planning new ways to help its member Credit Unions run their businesses more efficiently in a constantly evolving financial world.  The governing body conducts its business on an unpaid, voluntary basis.

They appoint trusted internal auditors and professionally qualified, external accountants who prepare a set of accounts for their individual AGMs. There are also regular in-depth inspections by the Registry of Friendly Societies. Any member can inspect the audited accounts at any time.

Yes for the following reasons: (I) Refusal to comply with the rules of the Credit Union. (II) Divulging confidential information. (III) Deceiving the Credit Union with regard to the purpose of money borrowed. (IV) Spreading false reports about the management and finances of the Credit Union. (V) Willfully making any entry or erasure or omission from any passbook or record or return of the Credit Union with intent to falsify it. (VII) Declaration of membership found to be false. (VIII) Failed for a significant period of time to participate adequately in the affairs of the Credit Union. Members shall be notified in writing by the committee about their explusion. A member's explusion does not absolve them from any liabilities arising.

Yes, a member can appeal against expulsion by written request to the committee no later than 30 days after the date of the notice of expulsion has been served upon them.

After a minimum of 13 weeks regular savings or 4 months regular savings.

For a provident or productive purpose -  holidays, cars, household goods, clothes, weddings, etc.

Complete a loan application form and present this along with their pass book to the Credit Union Office before the next Loan Committee meeting.

Depends on the Loan Policy of the Credit Union. It is usually a multiple of the members savings.Savings of £300 and a Loan Policy of 2 to 1 gives a maximum loan of £600. As Credit Unions grow the multiple may also increase. (Note- First time borrowers may only be granted a loan of up to their share value.) Each Credit Union decides its own policy as local conditions dictate.

(I) Availability of funds for granting loans. (II) Purpose of loan. (III) Applicant's ability to repay the loan. (IV) Record of savings. (V) Record of repaying previous loans.

If you have a loan it would be at a maximum of 1% interest per month on the reducing balance, i.e a loan of £1000 repaid over a year would cost £60 interest. Loans to be reapaid as per agreement on the loan application form. 

The committee sends a letter to the member asking them to come to the Credit Union to discuss the matter. It could be that member has become redundant, ill, etc, and finds it difficult to repay the loan. It is important to discuss the matter with the Credit Union who will try to be helpful in these situations. Where there is deliberate non-payment, the Credit Union on behalf of all the members will bring the defaulter before the courts. Court action can result in the member having to pay back the loan plus interest, the cost of the court fees, being placed on a blacklist that prevents the member obtaining credit or HP anywhere else, and being banned from joining another Credit Union. A loan not repaid affects all the members.

To bring together and support the affiliated credit unions within a British identity.  To provide a local and easily contacted central office to answer queries, help with difficulties, offer advice and to provide stationery, rule books, etc. To act as a powerful body when negotiating with the  Registrar, Banks, Solicitors, Accountants, Insurance Companies and other financial and legal bodies. 

By a committee of elected representatives from all over Northern Ireland previously elected by each Credit Union to their respective county zone.

The Annual General Meeting is normally held on the last Saturday in April, hosted annually by each of the zones in turn.  Committee members of all UFCU affiliated Credit Unions are encouraged to attend.