Terms & Conditions
Applying for a Loan From Thistle Credit Union
Thistle Credit Union members who are eighteen 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 Thistle Credit Union and as such meet and maintain minimum membership requirements in terms of savings.
Members are non-members can apply for a loan at any of our offices. Alternatively, paper applications can be completed and posted to the Thistle Credit Union head office or handed in to us at one of our branches. Current members who have registered for our secure online banking facilities can submit their loan applications online.
The Approval Process
Thistle Credit Union is a responsible lender and as such we give every loan application we receive careful consideration and make a decision based on income, 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 we take no undue risk 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. For all loan applications we will ask for your last three months of bank statements and your most recent proof of income such as a wage slip or benefit entitlement letter.
A Loan Offer
Following the assessment and approval process, we may make a loan offer. Any loan offer made by Thistle Credit Union will be subject to:
(a) The completion and return of a loan agreement.
(b) The completion and return as required of a payroll deduction authority or direct debit instruction to cover loan and interest repayments.
(c) The loan offer remaining in place and Thistle Credit Union not withdrawing it prior to funds being drawn down.
When borrowing from Thistle 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 organisations.
Savings
For as long as any part of a loan or interest on it is outstanding, Thistle 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’ in this context means any paid-up shareholdings, or savings, you have in your Thistle Credit Union savings account at the time of loan issue.
Interest
Interest on Thistle 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, standing order, paypoint, cash or direct debit. Unless otherwise agreed between us, the whole of each payroll deduction standing order, paypoint, cash 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 the money 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 your employer during the loan repayment period, you must make arrangements to continue to repay the loan by standing order, paypoint, cash or direct debit.
Payment holiday 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 set up a new loan for the remaining balance and the extra amount you want to borrow. The new loan may have different terms or interest rates from your initial loan. This may mean that you could pay more or less interest than before.
Default
Should you fail to make payments 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 outstanding balance 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 Thistle 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 the 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 for further action, which may include court action to obtain repayment of all sums due under the loan agreement. In cases of default, as the borrower you should be aware the credit union may seek to recover funds due via any Department for Work and Pensions benefit payments which you may receive.
Termination
As the lender, Thistle 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 noticed required by law if:
The borrower fails in any material respect to keep any part of the loan agreement.
The borrower has deliberately given false information or inaccurate information in connection with the loan agreement or any other credit agreement between the borrower and the lender.
(a) The borrower is the subject of a court action which has the effect of taking away control of the whole or substantial part of the borrower’s assets.
(b) The borrower becomes incapable in law of managing their own affairs.
(c) The borrower is either declared bankrupt or granted a trust deed for their creditors.
(d) Should the lender terminate the loan agreement or should the borrower default, the lender is entitled to the repayment of the whole sum due under the loan agreement and may retain money held by the lender for the borrower in any other type of account and apply the said money held on or towards payment of the balance outstanding in terms of the loan agreement.
Cancellation
Loan agreements may be cancelled within fourteen days after the loan is advanced to you by telling us you want to cancel it (ie. by telephone) within that fourteen day period giving us written confirmation of cancellation within five 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 be accrued. Interest will run from the date of loan issue until the date of cancellation.
Disclosure
Thistle Credit Union is a data controller of the information provided on loan applications and other forms in terms of the Data Protection Act of 1998 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 any 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 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 deductions, will be made to the company or organisation concerned.
In the event that you default on your loan or any terms and conditions in relation to your loan are breached, details of such 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 individuals or organisations for this purpose registered by the lender with the data protection registrar.
Member Care
Thistle 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 endeavor to resolve any complaint as effectively and efficiently as possible. Thistle 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.
Financial Services Compensation Scheme
Thistle 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. In the event of the failure of Thistle Credit Union, you will automatically receive the total amount held in your savings account within seven working days