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About Akhenaten

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  1. DDs have advantages but also downfalls as illustrated here. But if you have online banking why bother with DDs at all? All you have to do is say ,once a week, log on are sort your bills out by direct payment, it is under your control then, you can check what has been paid in case something has been missed.
  2. This is a mess. But was it wise to simply stop paying? You could have simply contacted your credit union, indeed it was your duty to so, and explain your situation and ask then to use your shares to clear your debt by way of a shares to loan repayment transfer. The loan would have been cleared and you could have withdrawn any shares that remained. Instead you simply stopped paying and broke the trust that the credit union granted you and hence the mess. Membership of any organisation is two way affair, you have duties and you gain benefits and both parties must act in good faith then there
  3. Unwise, blindly copying commerical banking practices when you don't fully understand them is obviously fraught with dangers. Check out credit union collapses in the USA, one with assets of $34 billion and others who tried to run when they should have been crawling. Check out credit union failures in the UK. Keep on crawling, stay grounded, there is a long way to go and vested interests, even if well intentioned, will try and send you down dead end roads.
  4. I cannot really see the benefit in credit unions blindly copying or following banking practises. Offering a current account must entail additional costs for the clearing of transactions through a clearing bank, plus of course it may be conveient in some ways but it makes it easier for members, low paid or not, to spend their savings, especially to indulge in impulse spending. Then there is the inevitablle delay in clearing funds which may result in a credit union not being exactly sure of the level funds remaining in their account but still having to make weekly decisions on the amount o
  5. Strange that the so called "credit crunch" should affect a credit union. A "credit crunch" is that financial insitutions such as banks are finding it hard to borrow money on the wholesale market (intrabank lending) and therefore are relunctant to lend what money they have. Credit unions should not be affected at all by this as the money they have comes from their members and they do not have to borrow money from outside their membership, and this shoul dnot have changed. Of course credit unions can arrange an overdraft with their bank, just as any other bank customer but this may be expensive.
  6. The provy have a top rate of 417%, but they are legal. I have some sympathy with them as door to door collection is very expensive and would be unnesssecery if people simply made the effort to walk to their nearest credit union. Granted you need to save with a credit union first before you can apply for a loan, simply think ahead a some point you will have a need to borrow, maybe even use part of your provy loan to start a credit union account and then at some suitable point in the future get a loan from the credit union to clear your debt with the provy. Credit unions do need to exerc
  7. It is difficult to comment on this one as there seems to be some confusion about exactly what is to be borrowed and what the terms are. The maximum a credit union can charge is 2% per month on a reducing balance, they can charge less. Now sure how a credit union can charge 5% on a reducing balance, that makes the charge around 2.5% in real terms, and pay 5% dividend. That would mean they can charge around £2.5 per £100 loan per year but payout £5 per £100 on shares per year!!!! Who is paying for all the costs of running the credit union?? Logically every member should borrow the maximum
  8. As far as I am aware there is no legal requirement for a credit union or bank to carry out a credit check. Not even sure about the basic sense in paying say around £12 for a credit check when the interest the credit union would charge on a £200 would be around £13! But maybe you are applying for a large amount. But the basic thing is your record within the credit union. If you have had a few loans and have repaid them in a regular way whilst continuing to add a little to your savings then they should make decisions based on the relationship that you have built up over time. There is no ne
  9. I am not very happy to see advertising on this site. Credit unions are run by people, usually very good people but even credit unions go wrong. There are notable cases in the UK and USA. In the UK there is the Financial Sevices Compensations Scheme and the "Fidelity Bond" insurance that protect members savings up to £30K, which I guess covers everyone. It is your money, you are resonsible for what you do with it, base your trust on something not just blind faith.
  10. I know a little about credit unions. Each credit union is seperate entity thus having slightly different rules, but generally when you join a credit union you are starting anew and it is up to you to save and gain their trust, after all it will other members money you will be applying to borrow. Generally there is a relationship between how much money you have saved and how much you can apply to borrow. The limit is around 2 or 3 times the amount you have in savings (called shares), the maximum length of a loan is 3 years. Some credit unions may allow you to "top up", that is apply for anoth
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