Frequently Asked Questions
Membership
Can I be a member of more than 1 Credit Union?
Can I access my account online?
Do I need to keep a minimum balance?
How can I pay into my account?
Can I open an account for my child?
Loans
Can new members apply for a loan?
Why do I need to supply income and expenditure for a loan?
How is your interest calculated?
Can I access my shares when I have a loan?
What if I can no longer afford to pay my loan?
Insurance
What is Death Benefit Insurance?
What is Loan Protection and Life Savings (LPLS) Insurance?
Deceased Members
What do I need to provide when informing the Credit Union of a member’s passing?
Can I choose who gets my Credit Union money when I die?
Online Services
How do I make debit card payments online?
What If I forget my log in details?
Membership
How do I become a member?
Anyone over the age of 16 can apply for adult membership providing they live or work within our common bond.
We require two forms of identification to open the account – Photographic ID and Proof of Address.
You can join in our office or online at www.larnecreditunion.com.
What is a common bond?
A common bond is a factor which unites all members of a Credit Union. It defines the area in which the Credit Union can operate. Larne Credit Union Limited has a community common bond where all members live or work in Larne or the surrounding area.
Can I be a member of more than 1 Credit Union?
Yes, provided you meet the common bond requirements for each Credit Union.
Can I access my account online?
Yes, you can register to access your account through our website: www.larnecreditunion.com. You will be able to view your balances, apply for loans and make payments into your Credit Union account.
What are Shares?
Every £1 saved is equivalent of one share in a Credit Union. Each share is eligible for a dividend at the end of the year. The more savings held by the Credit Union; the more funds are available for loans to members.
What is a dividend?
A dividend is essentially an annual ‘interest’ on any shares (savings) you hold with us throughout the financial year. The credit union financial year is from 1st October until 30th September. The value of dividend you receive depends on the amount you have in your savings and the duration it is lodged for within this timeframe.
The dividend is the way in which we return our profits to our members and the amount you receive, if any, will vary depending on how much profit the credit union has made in the year. This is agreed at the AGM each year.
Do I need to keep a minimum balance?
Yes, you are required to keep a minimum balance of £20 in your account.
How much can I save?
A maximum of £25,000 for adult accounts and £8,000 for minor accounts.
How can I pay into my account?
You can pay into your account using cash, card or cheque. You can also set up regular payments by direct debit or recurring payment online.
How do I withdraw money?
There is a daily cash withdrawal limit of up to £1,000 per member (subject to change). For amounts exceeding this we can transfer funds directly to your bank account or write you a cheque.
What is an Easyshare account?
An Easyshare account is a separate sub account that can be accessed at any time regardless of your loan balance. This account enables members to save for any occasion and budget more effectively.
Can I open an account for my child?
Yes, minor accounts are available for children under the age of 16. We require two forms of ID for the parent together with the child’s long birth certificate.
Loans
Can new members apply for a loan?
Yes, you can apply for a loan as soon as your membership application has been approved (subject to terms and conditions). Please contact us for further information.
How do I apply for a loan?
You can apply for a loan using your online banking, in our office, over the phone or you can start the application by email.
Why do I need to supply income and expenditure for a loan?
All our loans are based on affordability, so as a responsible lender, it is important that we ask you to confirm your income and expenditure. For this reason, loan applicants will be required to send in copies of their most recent bank statements to show their incomings and outgoings. Self-Employed applicants will also be required to supply their last 2 years audited accounts.
This ensures that we do not take unnecessary risks with the credit union’s funds and do not give out loans where we feel it will result in the member getting into financial difficulty. It also means that we can look beyond a member’s credit report to try to help them in every way we can. We can help with many different circumstances and situations, so we urge you to speak with us if you are experiencing financial difficulties.
How is your interest calculated?
Larne Credit Union adds interest to your loan on a daily basis and this is calculated on a reducing balance. So, as your loan balance falls, the amount of interest you’re paying back also reduces. There are no early repayment fees or charges.
What is an interest rebate?
The interest rebate relates to loans. The total amount of interest that is paid on your loan throughout the financial year (1st October until 30th September the following year) is calculated and a percentage is returned to you which means borrowing with us costs even less! The interest rebate on loans is agreed at the AGM each year.
Can I access my shares when I have a loan?
Shares up to the loan value will be required to be held in your savings as collateral for your loan. You will be able to transact as normal above this collateral amount, to include lodgements and withdrawals or you can access your Easyshare account.
What if I can no longer afford to pay my loan?
If you are struggling to make your loan repayments, please contact us directly.
At Larne Credit Union, we understand that sudden unforeseen changes in circumstances can affect a member’s ability to repay their loan, especially in today’s unpredictable economic environment. Contact our Credit Control Team on (028) 28580772 or (028) 28260078 as soon as you believe that you may have difficulty meeting your loan repayments and we will try to help in any way we can.
We know that sometimes it is difficult to talk about these issues, so if you find it easier to make that initial contact, you can also email us on creditcontrol@larnecreditunion.com
Insurance
What is Death Benefit Insurance?
All eligible members of the Credit Union can apply for insurance covered under our Death Benefit Insurance Policy. This means in the event of your death, a lump sum of £2,500 will be paid to your family to help with the cost of funeral expenses, thereby easing the financial burden of bereavement. This insurance is deductible directly from your credit union account annually, please speak to a member of staff for this year’s premium. If you wish to opt out of this scheme, please inform us in writing EVERY YEAR before our AGM. You will be informed of the AGM date in advance.
Nobody enjoys talking or even thinking about their own mortality. However, the simple fact is funerals are now extremely expensive and very few people realise the impact funeral bills will have on their lives. In recent years the average cost of a funeral has increased to over £2,500. Death Benefit Insurance won’t ease bereavement, but it will go a long way towards easing the financial burden your death may place upon your family.
To qualify for death benefit insurance, you must be a Credit Union member, be in good health upon joining and must have joined before your 70th birthday. You must insure you maintain an appropriate balance to cover the cost of the annual premium.
What is Loan Protection and Life Savings (LPLS) Insurance?
Larne Credit Union provides LPLS insurance free of charge to all our members, this is a perk for being with us.
Loan Protection Insurance is the insurance cover the Credit Union provides on the lives of its borrowing members. If a member who is eligible for insurance cover and has signed the promissory note dies with a loan outstanding, the loan balance is paid in full by the insurer.
You will be informed at the time of the loan application if your loan exceeds the amount covered by the credit union’s policy. Larne Credit Union insures loans up to the member’s 85th birthday.
Life Savings Insurance is the life insurance cover the Credit Union provides for its eligible members as an additional incentive for them to save regularly. The amount of insurance benefit to which a member is entitled is in proportion to the amount of savings the member has and depends on the members age at date of lodgement.
| Age | Savings | Insurance Cover |
| Under 55 | Every £1 provides* | £1 of insurance |
| 55 – 59 | Every £1 provides* | 75p of insurance |
| 60 – 64 | Every £1 provides* | 50p of insurance |
| 65 – 69 | Every £1 provides* | 25p of insurance |
*Up to a maximum of £15,000, shares exceeding this amount will not incur any additional benefit.
Exceptions to this include:
- lodged after age 70 (though all savings earn the dividend approved at AGM), or
- lodged whilst not in good health, or
- Withdrawals after the age of 55 will affect the amount payable as only your minimum balance will be insured.
Deceased Members
What do I need to provide when informing the Credit Union of a member’s passing?
Dealing with the loss of a loved one can be a difficult and emotional process for everyone involved. As a credit union, it is important that we approach these situations with sensitivity and compassion. Here are the steps that we need to follow in order to deal with your loved one’s account.
- Provide us with an original Death Certificate/Coroner’s report.
- We may ask some questions about your loved one’s date of passing and health. If you find these difficult, you can have someone else available to provide us with this information.
- We will then freeze your loved one’s account, both savings and loan interest if applicable.
- We provide statements to our insurance provider to make claims on the Death Benefit Insurance (If applicable) and the life savings and loan protection insurance (if applicable) attached to the account. This normally takes around 6-8 weeks.
- Once final insurances are paid into the account we will seek to notify beneficiaries on the account.
- We will ask for the funeral bill in order to pay out the £2,500 Death Benefit Insurance (if applicable). We will normally issue a cheque payable to the funeral providers. This can take an added worry off the families of loved ones at difficult times.
- Any remaining funds would then be paid to the beneficiary on the account up to the amount of £20,000, any amounts exceeding this will require probate.
Can I choose who gets my Credit Union money when I die?
You can be certain your chosen person(s) receives your shares and any insurance attached to them when you die if you complete a Nomination form. This form is available to complete in our office. The individual(s) on the form will become your nominee. Larne Credit Union can disburse amounts up to £20,000 to the nominee nominated. Probate must be extracted on amounts over £20,000.
You must update your nomination if you marry, divorce or if the person nominated dies before you. As you go through the course of your life and update your will, make sure you update your nomination too! You may change your nomination as often as you like, and you may name more than one person as your nominee.
A properly completed Nomination takes precedence over a will.
Online Services
What can I do online?
Online members can view their accounts, download statements, make one off and recurring debit card payments, apply for loans and send and receive secure messages.
How do I register?
Register to access your account online through our website www.larnecreditunion.com. Click on the ‘Register’ button at the top of the screen.
How do I log on?
You can log on through our website www.larnecreditunion.com. There is a log on guide in the download section of our website that takes you through the process step by step.
How do I make debit card payments online?
There is a guide in the download section of our website that takes you through the process of making debit card payments online.
What If I forget my log in details?
You can reset your password or pin through our website using a memorable word that you would have created when you initially logged online. If you can’t remember this, your username or you require any other support, please contact our office on 02828260078 and a staff member will assist you.
Should you have any further questions or queries please contact our office on 02828260078 or info@larnecreditunion.com and a member of staff will be happy to assist.
