Frequently Asked Questions
- What is a Credit Union?
- How is a Credit Union run?
- What is a 'Common Bond'?
- What's in it for me?
- How do I save?
- How do I make a deposit or withdrawal?
- Am I eligible for a loan?
- Is my money safe?
- What are the benefits of a Credit Union compared to a bank?
- How do I make a complaint?
1. What is a credit union?
A Credit Union is a not-for-profit company offering easy ways to save, low cost loans and ethical financial services.
Credit unions are authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority. Money saved is protected by the Financial Services Compensation Scheme (just like banks and building societies).
Membership is based on a common bond, which means all members have something in common linking them together. Money Spider's common bond is that its members live or work in South Derbyshire or East Staffordshire.
The Government and the Local Government Association are in agreement that credit unions can play a key role in helping to combat social and financial exclusion. This is done by building personal wealth through personal savings and by the provision of low cost loans and competitive financial services.
In other parts of the world, the credit union movement is very large. The movement is particularly strong in the USA, Canada, Ireland and Australia. There are now around 100 million people in over 80 countries served by around 36,000 credit unions
2. How is a Credit Union run?
Credit unions in Great Britain are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) and monitored by the Association of British Credit Union Ltd (ABCUL). Those running credit unions in Great Britain have to be approved by the FCA and PRA and that they comply with rules governing how the credit union is run.
Volunteers are essential to the running of services, including operating community branches for the people in their area. You can get involved in making decisions and getting things done.
As mutual financial institutions, credit unions are not-for-profit organisations. Any income generated by lending is solely used to cover our operating expenses and paying our members a dividend.
3. What is a common bond?
Credit Union membership is based on a common bond, which means all members have something in common linking them together. Members of Money Spider must live or work within South Derbyshire or East Staffordshire.
Family and people sharing a home with members can also join the credit union. If once you are a member you move, or take employment outside area you can keep your membership.
4. What's in it for me?
Save what you like, when you like
Competitive loans, with no loan minimum and easy repayments
All savings and loans have free life insurance (subject to conditions)
Easy to make deposits by cash, cheques, payroll deductions, standing orders, bank transfers
Face to face, confidential appointments available.
5. How do I save?
You can save:
At one of our collection points
By standing order or bank transfer
By taking part in a Payroll Deduction Scheme
By having your state benefit paid in directly to the credit union
6. How do I make a deposit or withdrawal?
Deposits in to an account and repayments of loans can be made either at any Collection Point, or by bankers order or by State Benefit.
Withdrawals can be made by giving 7 days notice and on completion of a withdrawal form; this should be handed in at any of the Collection Points from where the money will be given after the notice period. In emergencies other arrangements can be made.
7. Am I eligible for a loan?
8. Is my money safe?
The short answer is yes.
Money Spider has a supervisory committee and mandatory
professional audits. Credit Unions are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA)
and are further monitored by
the Association of British Credit Unions Ltd. Credit
unions are also covered by the Financial Services Compensation Scheme
(FSCS), just like Banks and Building Societies. If a credit union itself
is unable to repay members in full, the FSCS will provide compensation.
If you want to withdraw your money at any time you can do so as long as you are in credit giving 7 days notice unless it is an emergency
9. What are the benefits of a Credit Union compared to a bank?
The deposits will be as safe as in a Bank, and insured in the same way.
No hidden charges. We offer straightforward, no strings attached banking.
The closure of many bank branches makes banking difficult and impersonal. We're different. We have local collection points for your convenience. You can contact us for a face to face appointment at a time that suits you. We pride ourselves on friendly and reliable customer service.
Credit unions have lower operating costs and overheads. Profits are returned directly to the members, not to shareholders.
10. How do I make a Complaint?
We always strive to give you the best service possible, but if you are dissatisfied by the service you have been provided, please contact us and we promise to investigate and resolve any issues you may have as quickly as possible. We have clear internal procedures for dealing with members complaints.