Forum Topic

Ealing Credit Union.

For borrowing money, is Ealing Credit Union as safe as one of the big five high street retail banks?

Gerry Tan ● 4721d6 Comments

Do you understand how Credit Unions work Gerry?I ask this as many think that they are simply an alternative to high street lenders when, in fact many are a SAVINGS and loan operation; e.g. you need to have saved to a certain level before you borrow. Most are authorised and regulated by the Prudential Regulation Authority and regulated by the Financial Conduct Authority with savings up to £85,000 per member guaranteed by the Financial Services Compensation Scheme.They are not the alternative to £100 'payday' loans with punitive interest rates that many think.

Nigel Brooks ● 4720d

Yes Nigel, I believe I know how credit unions work. They are good for saving and borrowing. I just wondered if they are as good as they appear to be. And I wondered if those who use 'payday loan companies' might use credit unions instead.

Gerry Tan ● 4720d

The problem Gerry is that those 'reduced' to using payday loan companies have no savings so would effectively be excluded from using a Credit Union.

Nigel Brooks ● 4720d

The original Building Societies were Credit Unions, but many decided that they wanted to become Banks, then ran into huge problems. I suspect that a few people made a big profit, then got out.

Chris Bell ● 4719d

Building Societies were(are) a great way of saving. I remember opening my first account with the Co-operative Permanent Building Society using my first working wage(I used to earn £3.17/6d!). I deposited £1 a week into my Co-op account and the small weekly amounts were entered into what was call sharebook, which I treasured with my life. Happy days! Nowadays, its all 'banana republic money with dozens of OOOs! How times have changed!

Gerry Tan ● 4718d

I believe the system is that you have to be a member and make regular savings. Once you have saved a certain amount you are then eligible for a loan which could be 2 or 3 times the amount of your savings. Savings up to £85,000 are guaranteed the same as for a high street bank. The website is here: www.ealingcreditunion.org

Paul Conlan ● 4717d