Many people join Dumbarton Credit Union Ltd on the recommendation of friends or family.
Dumbarton Credit Union is a not for profit financial co-operative, owned and run by its members. Any profit made by the Credit Union is used to cover all of the running costs, if possible pay a dividend on memberís shares and put aside funds into a reserve account.
Members of a Credit Union come together under a ďcommon bondĒ. Dumbarton Credit Unionís Ďcommon bondí is restricted to living or working within 'G' postcode.
Dumbarton Credit Union was set up nearly 27 years ago when a group of people got together who wished to help overcome the moneylenders and money sharks in the town and give everybody in the community access to loans at affordable repayment rates. It was found that a lot of people were unable to get loans from banks if they were on low incomes, unemployed, on other benefits or had had financial problems in the past. Dumbarton Credit Union helps these people with small loans with affordable repayments. The repayment of the loan includes interest which is calculated on a daily basis allowing the amount to be repaid to be less if you pay it off more quickly and unlike some banks no charge is made for paying off a loan early. This interest is the income of the Credit Union which pays for the everyday running costs and can even sometimes give savers a payment called a dividend once a year.
Although the main priority of Dumbarton Credit Union is to help the community financially this can only be done if the community also helps the Credit Union by saving with them. The money of the members who save with the Credit Union is used to pay for the loans given out. The loan is then repaid with interest.
Saving with a credit union is not expensive in that it is more important how regularly you save not the amount you save. Proving that you can train yourself to save each week or month on a regular basis means that should you wish to take out a loan you are used to making a regular payment.
The minimum age for full membership of the Credit Union is 18. Our Credit Union has an active Junior Section for those under the age of 18.
Only individuals are allowed to be members of the Credit Union. We canít offer group accounts.
Credit Unions have become so popular all sections of the community now use them. MPs, council workers, teachers all save and take out loans with Credit Unions. So what was started as a small idea has grown and is still growing each year.
The Credit Unions encourage all age groups with a variety of saving accounts. We have junior accounts, Adult accounts, Christmas/Holiday accounts and accounts which can pay for your funeral. As we are a community based company and not a profit making business, everything that is earned from the interest of the loans is put back into the Credit Union. We also arrange for insurance cover on your savings and loan. This is free of charge but ensures that should anything happen to you your loan is paid off and your shares are added to to help those left behind.
The Credit Union is run by volunteers and staff at the present time. Each year at the Annual General Meeting the membership of the Credit Union elect a Board of Directors, a Credit Committee and a Supervisory Committee.
The Board of Directors is elected for a three-year term of office. The Board of Directors sets the policies under which the Credit Union operates.
The Credit Committee makes decisions on loan applications. They operate within the Credit Unionís Loan Policy.
The Supervisory Committee monitors all of the operations and activities of the Credit Union. They ensure the Credit Union operates within our Rules and within the Law.
Each time you pay in at the Credit Union office the person taking your money is another of our volunteers. In addition to the roles outlined above we have other volunteers who contribute their time behind the scenes.
Dumbarton Credit Union Ltd operates under the 1979 Credit Union Act, the Money Laundering Regulations of 1993, the Criminal Justice Act of 1993 and various other pieces of legislation.
The law requires Credit Unions to be audited each year. We are monitored by our external Auditor who is appointed at the AGM and by the Financial Services Agency. Credit Unions all operate on an individual basis however we are required by law to be a member of a National Trade Body.
Credit Union Aims:
The aims of Dumbarton Credit Union Ltd are:
- To promote savings and thrift by members
- To create a source of low cost loans for members
- To assist members in managing their finances
- To promote the welfare of the community