If you do not understand, or have any doubt, as to the meaning of any part of this agreement, please ask the Credit Union for clarification. Alternatively, you could take independent legal advice, for example from a local Citizens Advice Bureau, Law Centre or from a solicitor.
Your Right To Cancel
You have the right to cancel your loan agreement with the Credit Union, without penalty, within 14 days of the loan being processed and the funds received. To cancel your loan agreement within this period, please contact the Credit Union. Written confirmation of cancellation must be received within five working days of the initial cancellation request. The loan plus any accrued interest must be repaid in full. Interest runs from the day the loan is issued until the date of cancellation.
Data Protection Statement
In accordance with the principles of the Data Protection Act 1998, we will use your personal details for the purposes of managing your accounts with the Credit Union. Your personal details will be treated confidentially and will only be shared with other agencies for the purposes of credit referencing and debt recovery.
Credit Reference and Fraud Prevention Agencies
We may make searches about you at credit reference agencies who will supply us with credit information and identity verification as well as information from the Electoral Register. The agencies will record details of any search. This information may also be used for debt tracing and the prevention of money laundering as well as the management of your account. This includes reporting the performance of any loan to one or more credit reference agencies. In addition, we may ask you to provide physical forms of identification and/or we may telephone you to confirm your identity. To prevent or detect fraud or to assist in verifying your identity we may make searches of group records and at fraud prevention agencies who will supply us with information. We may also pass information to financial and other organisations involved in fraud prevention to protect ourselves and our customers from theft and fraud. If you give us false or inaccurate information, details will be passed to fraud protection agencies.
Attachment of Shares
The Borrower understands that all monies held in Share 1 Account at the time of the Loan and any subsequent deposits made to the Share 1 Account are held to secure repayment of the Loan and cannot be withdrawn until you have more savings than your Loan or the Loan is repaid in full. The Borrower also agrees to continue saving on this account while the loan is being repaid.
Key Terms and Conditions
1.“The Lender” will lend, and “The Borrower” acknowledges that they have received, the sum borrowed under this “Loan Agreement”. “The Borrower” will repay the loan, that is, the “Total Amount Owing” by the repayments set out in the “Loan Details” above.
2.Until such time as the loan is repaid, “The Borrower” will save with “The Lender” the sum set out as above.
3.Interest will be charged daily on the unpaid balance of the Loan and any unpaid interest at the rate set out in the “Loan Details” above.
4.“The Borrower” has the right to settle this Agreement early, at any time, by paying in full the balance of the Loan and any unpaid interest outstanding. “The Lender” will, on request, provide “The Borrower” with a written statement of the sums which have been paid and any which remain outstanding under this Agreement.
5.“The Borrower” acknowledges that the details given on the Loan Application for this Loan Agreement are correct and will inform “The Lender” immediately of any change in financial circumstances, which may reduce their ability to repay the Loan, or of any change in their address.
6.If “The Borrower” fails to pay any amount due to “The Lender” under this Loan Agreement, or breaches any of its terms, “The Lender” has the right to demand early repayment of all or part of the balance of the Loan outstanding together with any unpaid interest. “The Lender” will give “The Borrower” written notice not less than seven days before taking any action to recover any such sum. “The Borrower” acknowledges that, if any loan repayments are not paid, or are paid after the agreed time, this may result in the “Total Amount Payable” under the “Loan Agreement” being greater than the sum set out in the “Loan Details”.
7.“The Borrower” recognizes this as a legally binding contract and that, if “The Borrower” fails to comply with any of its terms, “The Borrower” may be liable to further action, which may include court action.
8.”The Borrower” agrees that if they default on repayments, information about the loan may be passed on to a Debt Collection Agency.
9.“The Borrower” will be liable for any costs “The Lender” incurs in recovering sums due under this Agreement.
10.“The Borrower” assigns to “The Lender” as security for payment of the Loan, interest and any costs payable under this Agreement all paid shares and payment on account of shares, which have been made or will be made in the future. “The Lender” has the right to set off or apply any such shares towards payment of those sums.
11.“The Borrower” agrees that a Statement issued by the Secretary of the Credit Union shall be final and conclusive evidence as to the amount owed by “The Borrower” at any time.
12.“The Borrower” agrees that if they default on repayments made via HMRC Child Benefit, information about the loan may be passed on to the Department of Works and Pensions (DWP) for their consideration of deductions from the benefits “The Borrower” is or will become entitled to.