I know its difficult for me to communicate with the guy am speaking over phone. I asked why the extra sum was deducted , i get the dumb answer it goes to your savings. I explained that i signed the agreement and the figure on agreement is what u should take. but again same dumb answer. so i asked can i withdraw that amount or you should refund the extra sum deducted they say no as 1/3 has to stay and read the terms and condition. Please note they are right i cant withdraw the saving as 1/3rd should remain. But that 1/3rd amount is now made up of illegally extra amount deductions which should not been deducted at first place. What they are doing is illegally deduct and put that money into 1/3 no touch pot. Even on email i asked whats up with the extra amount -generic reply came stating this much goes to savings and this much to loan repayment. i know the 1/3 rule but my loan was given during offer and instant that didn't even require savings eligibility i.e. 2x or 3x the savings amount for a loan to be approved. It was instant and being a new member. As per agreement they should take fixed amount of loan repayment and savings amounts as agreed. Instead they are taking the loan repayment but a different savings deduction figure which is greater than agreed. that's why i said they must have some savings deposit targets as they are forcibly making deductions but regardless its not part of this post discussion anyway.

i think its like selling insurance and thats how they give loans and try to achieve saving deposit targets.

I am not concerned about the money going out as any deductions will either go my loan payment and/or rest will go to savings. But what am concerned about is unprofessional dealings. It feels like dealing with someone who cannot keep his/her commitments. This is just one of the case in which they make dealings in a untrustworthy manner. The other ones am not concentrating at the moment in the post. Even though the money goes to savings, I never made such agreement. A penny decrease in my available cash -funds can affect a range of payments/expenses from large amount of rent to small payment of food bill in a bar. When i signed the agreement, I know and plan my future expenses/budgets/other financial commitments around that agreement. I know lets say £5 goes towards savings and £35 towards loan repayment = £40 total. When they take more than on agreement lets say £90 total{regardless of savings}, less gets deposited in my day to day bank account. It could lead to unplanned overdraft, failed direct debits etc due to insufficient funds. The penalties issued by bank will not be paid by credit union but by me. They take payments directly from my salary and when contacted regarding sudden increase in deductions their response is it just goes to your savings. Already was contacted the credit union by phone and contacted them online but no avail when I inform about such amounts being deducted which were out of agreement and get the same answer. Already contacted financial-ombudsman.org.uk to discuss initial steps and will be contacting my HR/ Payrolls to suspend such payments though very rare chance it will happen.

had already informed them but still the deductions are taking place. They had a offer where u get instant loan. As far as i know with banks or cellphone providers they take fixed amount of payments but this credit union is taking a lot more than i signed on paper or agreed at any stage via phone, letter or online as never made such request. When i contacted they said it goes to the savings. I said i never agreed to such amount being deducted either on agreement or phone nor requested such amounts to be sent to my savings.

The deductions made is not what i singed for.Even after pointing out that they are making unauthorized deductions they still continue. Can a credit union take whatever amount they want ?