How it works | Flamesavers Credit Union Limited

Money usually deducted at source (payroll or pension) although we can accept one off payments subject to some T&Cs
Savings up to £15,000
No more than one lump sum deposit of up to £1,000 each financial year
Savings are covered by FSCS up to £75,000
After 1 month’s membership you become eligible for a loan
Interest on loans is charged monthly on a reducing balance
Any profit that the credit union makes is paid back as a dividend on a member’s savings
In the last 3 years we have paid dividends of 3%, 2.5% and 1.5%

Assuming £100 per month is saved
dividend declared at 3%
dividend added in December so assuming 12 months saving with no withdrawals, savings would now be 12 x £100 = £1,200 + £19.68 dividend
- (Nationwide 1.7% = £11.11 less tax)
- (Nat West 1% = £7.17 less tax)
Savings are instant access.

For more information please go to the main Savings page

With approval you can borrow up to 5 times your share or savings balance, to a maximum loan of £20,000
We try to be as flexible and approachable as possible
We do not normally credit score or credit check but we reserve the right to do so
Loans can be repaid at any time after the first month with no penalties
You can pay a lump sum off your loan at any time with no penalties
You can transfer savings to your loan account at any time with no penalties, but you must maintain the 5 : 1 loan to savings ratio
Free insurance. If you die your loan is written off and your nominated recipient receives any savings you may have.

Needs a loan of £3,000 over 3 years
Has £600 in savings with Credit Union
Presently saving £5 per month
Repays £91.27 per month for 36 months – total £3,285.36 (approximately £405 cheaper than Nat West)
Continues to save £5 per month (in addition to the loan payment)
At end of 3 years, member now has £780 savings plus interest.

For more information please go to the main Loans page

APR’S are confusing as different methodologies are used depending on the type of institution. Banks, Credit Card Companies and Credit Unions for example use different formulas.
We calculate interest monthly on a reducing balance – presently all our loans are on 0.5% interest rate.
Always compare the full repayment figure as per the example below:
Using alternative credit lender ‘Pounds to Pocket’ as an example, if you borrowed £500 you would repay £79.09 per month x 12 – total £949.00. With the Credit Union it would be £43.03 per month x 12 – total £516.35
There are other Credit Unions in the market place
If you default on a loan we will vigorously pursue you, take you to court and you will get a CCJ against you. The actions of one member can impact on the welfare of other members and we take this very seriously.
We employ a debt collection agency and a private investigator to trace people who default on loans.

We try to be as friendly and approachable as possible but we are not mind readers. Communication is the key!
If you have problems with loan payments talk to us, ring the office and speak to us. We will do all we can to help, for example: reduce payments, suspend payments or interest for a few months.
The longer you leave it the worse it will be.
Remember there is always an answer, ignoring the problem will not make it disappear.
External agencies do exist where you can get independent help and advice such as moneyadviceservice.org.uk.