FAQs

General FAQs

1) What is a credit union?

Since 1964, credit unions have existed to provide loans, savings and other financial services to their members on a not-for-profit basis.

2) How is a credit union different to a bank?

Unlike a bank, a credit union doesn't operate to generate a profit - any surplus funds earned are used to pay running costs and provide benefits such as dividends on savings for their members.

Our members are our owners and have one share each in the Credit Union.

We believe that credit unions provide a credible and responsible alternative for loans and savings. Focusing on what people can afford, we put our members in control of their finances and encourage them to accumulate savings that improve their financial well-being.

3) Are my savings safe?

Credit Unions are authorised by the Financial Conduct Authority and the Prudential Regulation Authority. Savings from individuals and small organisations (such as businesses and charities) are protected by the Financial Services Compensation Scheme.

For further information about the scheme (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website or call 0800 678 1100.

4) Is my business kept private?

Yes. Everyone at the credit union with access to members personal data must act confidentially at all times. We observe the Data Protection Act 2018 (GDPR) and use the personal data you have supplied in strict compliance with our Privacy Policy.

5) What is the AGM?

Every December, we hold a Annual General Meeting (AGM) for our members.

As our members are also our owners, this is their chance to hear how the Credit Union is progressing, vote on dividends, and decide who will serve on the Board of Directors.

Joining Us FAQs

1) Who can join?

To join, you must live or work within our common bond area.

2) How do I join?

You can find more details on our Membership page. 

4) How long does it take to open an account?

The account will normally be opened the same day that we receive your application.

We will send you an email acknowledgement explaining the next steps. If you do not receive your email within two working days, please contact us by phone 01482 778 753.

Loans FAQs

1) Who can apply for a loan?

You must be:

a) a member of Hull & East Yorkshire Credit Union/ Northern Lincolnshire Credit Union*,

b) aged over 18,

c) registered on the voters roll**,

d) have your own bank account that allows standing orders.

 

* When completing a loan application form, you will also be applying for Membership if you're not already a member.

** Doesn't apply to our Matched Loan.

2) How can apply for a loan?

You can find more details on our loan pages.  

5) Do you do a credit check on loans?

Yes, for all loans other than our Matched Loan. Loans are assessed on an individual basis, taking into consideration a variety of factors including the affordability of the loan, previous savings and borrowing patterns with the Credit Union, credit history and so on.

Information on how we use Credit Reference and Fraud Prevention Agencies to check your credit history can be found here.

6) How long does it take to make a decision on loans?

Normally it will take just a few days, much depends on how busy we are at the time. Please only contact us to chase your application if you haven't had a response within 10 working days.

Our Matched Loan offers a same-day instant-decision.

7) How much can I borrow?

We have many types of loan available ranging from £100 to £20,000+. See our loan pages for further information on the product suitable to you.

9) How do I repay my loan?

All loans are to be repaid through your own bank account by bank standing order or direct debit, direct from Child Benefit or by payroll deduction.

10) How often must I make repayments on my loan?

We'll match your repayments at the same frequency you receive your income. Repayments should be made regularly (weekly, fortnightly, 4-weekly or monthly).

11) How do I collect my loan money?

We can transfer money to your bank account (often the same day as the loan agreement is signed), or by prior arrangement you may be able to collect cash from a branch. If the loan money is to pay particular bills, we can arrange to pay it direct.

With our Swap & Drop Loan the funds will be paid direct to the credit card or other bill that the loan is paying off.

12) What interest do I pay on my loan?

Rates differ according to the loan product. See our loan pages for this information.

13) How is interest applied on my loan?

It is applied to your loan daily and calculated on the outstanding balance. This means that if you settle your loan early you will pay less interest.

14) What term do I pay my loan over?

Our loan terms range from one to ten years according to which rate your loan is on. See our loans for more info.

16) How often will I get a loan statement?

Statements are provided upon request, or you can check your transactions through your account online.

17) Can I access my loan account online?

Yes. If you don't already have access to your account online, you can register for our Mobile App.

19) What if I cannot afford my loan repayments?

Get in touch with our Credit Control or Member Solutions team (01482 778 753) to discuss a reduced payment plan. Failure to keep up repayments could have a serious affect on your credit report.

Savings FAQs

1) How do I open a savings account?

When you join the Credit Union, you'll be given a standard Membership account which doubles up as a savings account. We also have other Savers that you can open in addition.

You can find more details on our Saver pages.

2) Are there any fees on the savings accounts?

There are no joining fees.

If a cheque is unpaid we reserve the right to debit your account with any charges that we incur. 

3) Do I have to have good credit to open a savings account?

No. We don't undertake a credit check for our savings or deposit accounts.

4) How long does it take to open a savings account?

The account will normally be opened the same day that we receive your application.

We will send you an email acknowledgement explaining the next steps. If you do not receive your email within two working days, please contact us by phone 01482 778 753.

5) Are my savings safe? 

Credit Unions are authorised by the Financial Conduct Authority and the Prudential Regulation Authority. Savings from individuals and small organisations (such as businesses and charities) are protected by the Financial Services Compensation Scheme*.

For further information about the scheme (including the amounts covered and eligibility to claim) please ask at your local branch, refer to the FSCS website or call 0800 678 1100.

*See question 6 for the current maximum savings balance allowed with Hull & East Yorkshire Credit Union.

6) Is there a maximum savings balance?

 At present, we are limiting members to £68,000 in total savings.

7) What is the minimum balance I need to have in my savings? 

Just £1 must remain at all times in your standard Membership account.

8) How can I deposit savings?
  • by bank standing order, Direct Debit or direct transfer from your bank
  • by payroll deduction (check with us first to see whether your employer is a HEYCU Payroll partner)
  • at an East Riding of Yorkshire Council Customer Service Centre.

* If deposits are made by cheque, no withdrawal may be made against them until the funds have been cleared in the Credit Unions bank account which usually takes 6 working days.

9) Can I deposit bags of change into my savings?

Yes. A maximum of 5 bags of change per day may be deposited. All change must be bagged correctly as mixed change will not be accepted.

10) How can I withdraw money from my savings?

Its easy, subject to any restrictions in the terms and conditions of your savings account(s).

If you have set up a standing facility (by providing us with your bank details in advance) you may request a withdrawal (minimum £10) by telephone, email or via the HEYCU Mobile App. Identity checks will be made.

In all other cases, a signed withdrawal request form must be posted, faxed or brought to the Credit Union. The form must be legible and the signature must correspond with that held on our records.

Withdrawals can be paid:

  • Direct transfer to your designated bank account (if requested before 2.30 pm Mon to Fri, the funds will normally appear in your bank account the same day);
14) How old do you have to be to open a Membership or Saver account? 

16. Anyone under the age of 16 can open a First Saver account.

15) What interest or dividend is paid to savers?

We pay a yearly dividend on your account. The dividend rate is determined by the Board of Directors and declared by the members in Annual General Meeting (AGM). Any dividend due will be paid to the account on the first working day after the AGM, and will be based on the balances held in the account throughout the year to the 30 September prior to the AGM (other than the Christmas Saver which is 31 October).

This table shows what the dividend has been in previous years. 

Year

2013

2014

2015

2016

2017

2018

  Membership and Instant Access Account,               & First Saver  

0.25%

0.25%

0.25%

0.25%

0.25%

 1.00%

  Loyalty Saver, & Child Trust Funds

1.5%

1.5%

1.5%

1.25%

1.25%

1.00%

  Christmas Saver

 0.75%

 0.75%

 0.75%

 0.5%

 0.25%

 1.00%

 

16) Can I have my wage, salary or pension paid into my savings account(s)?

You can have a payroll deduction, provided your employer or pension provider has a payroll arrangement (payroll partnership) with the Credit Union.

17) How often will I get a savings statement?

Statements for savings accounts can be provided free of charge upon request. You can also register for our Web App to view your balances and recent transactions online.

18) Do I have to pay tax on my dividends?

Dividends are paid gross so it is your responsibility to declare the income to the tax authorities if you are a taxpayer.

19) How do I close my Membership or Saver account(s)?

Any request to close your Membership or a Saver account must be made in writing giving 30 days notice before the money can be paid out. If you close your account, you will not qualify for any dividends declared after the account is closed.

Corporate FAQs

Who can open a Community Account?

Organisations based in or operating within our common bond area (see our Rule Book). This includes clubs, societies, charities, and small organisations both incorporated and unincorporated.  Account holders are known as Corporate Members of the Credit Union, with a £1 share and voting rights at Members' Meetings.

How can we join?

Full instructions are supplied on our Community Account page.

Are there any fees on the account?

If a cheque is unpaid we reserve the right to debit your account with any charges that we incur.

Any more than one postal statement per year will cost 50p.

Is there a maximum account balance?

At present, we are limiting members to £68,000 in total funds.

Is there a minimum amount we must have in the account?

You must maintain a minimum balance of £1 in this account to retain membership.

How can we deposit funds?

- by cash or cheque* at a branch

- by bank standing order, Direct Debit or direct transfer from a bank account

- at an East Riding of Yorkshire Council Customer Service Centre.

* If deposits are made by cheque, no withdrawal may be made against them until the funds have been cleared in the Credit Union’s bank account which usually takes 6 working days.

Can we deposit bags of change into the account?

Yes. A maximum of 5 bags of change per day may be deposited. All change must be bagged correctly as we cannot accept mixed change.

How can we withdraw money?

Applications for withdrawals must be made on a Community Account withdrawal form and posted, faxed, scan/emailed . They will be processed, provided they contain the required number of signatures matching those currently on our records.

Withdrawals can be made by:

- Bank transfer.

How many signatories do we need?

A minimum of two and a maximum of four signatories are required to act on behalf of your organisation.

How do we change signatories?

A form must be signed by the current registered signatories for the change to be made. If any signatures are unobtainable, please provide a letter of resignation or a signed copy of the minutes of the meeting where the individual’s removal was confirmed. If a signatory dies, a death certificate would be required.

Do we need a formal constitution?

If you don’t have one, a sample constitution is available on request. It should be completed by the office holders to verify the organisation’s existence.

What interest or dividend is paid?

We pay a yearly dividend on your account although the rate of dividend is not guaranteed.  The final dividend paid may vary and it is possible that no dividend is paid at all.  The dividend rate is proposed by the Board of Directors and voted on by the members at the Annual General Meeting (AGM).

Any dividend due will be paid to the account on the first working day after the AGM. Dividend is based on the balances held in the account throughout the year to 30 September prior to the AGM.

Do we need to make regular deposits to keep the account open?

If you make no deposits on your account for 12 months or more, the Credit Union may declare your account dormant in accordance with Credit Union Rules 30 to 34.  No dividend will be paid on dormant accounts and, if you do not respond to our enquiry an annual administration fee of £5 may be deducted from your account balance.  Therefore it is important to tell us if your address or contact details change so that we don’t lose touch with you.

What happens if money is paid into my account by mistake?

If we are told a payment has been made into your account by mistake and we reasonably believe this to be the case, we may return the money. We will tell you if this happens and give you the chance to dispute the claim. If asked, we may share your relevant personal information with other banks, building societies and credit unions so that the payer can trace money paid to an incorrect account.

Can we open two Community Accounts?

An organisation may only hold one Community Account.

How do we close the account?

Any request to close the account must be made in writing, or by using our closure form (downloadable from our website), giving 30 days’ notice before the money can be paid out. It must be signed by all registered signatories.

If you close your account, you will not qualify for any dividends declared after the account is closed.

© Hull & East Yorkshire Credit Union | Registered under the Credit Union Act 1979 and the Co-operative and Community Benefit Societies Act 2014. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority. Our FRN is 213620.