Loan – Terms and Conditions

1. Loans can be made to members over the age of 18 years of age.
2. The maximum interest rate charged on loans shall be no higher than 3% per month on a declining balance, 42.6% APR. This amount may be varied in the event of a change of legislation and members will be kept informed of any such change.
3. The Lender will lend, and the Borrower acknowledges that they have received, the sum borrowed under the loan agreement. The Borrower will repay the Loan (i.e., the Total Amount Owing) by the repayments set out in the loan agreement.
4. Interest will be charged monthly on the unpaid balance of the Loan and any unpaid interest at the rate set out in the Loan Agreement.
5. Shares cannot be withdrawn while paying a loan unless the share balance is higher than the loan balance, all your shares up to the outstanding loan balance will be attached to the loan and you will not be able to withdraw these.
6. The Borrower has the right to settle the Agreement early at any time by paying in full the balance of the Loan and any unpaid interest outstanding. The Lender will, on request, provide the Borrower with a written statement of the sums which have been paid and which remain outstanding under the agreement.  There are no penalty fees for paying of your loan early.
7. The Borrower acknowledges that the details given on the Loan Application for this agreement are correct and will inform the Lender immediately of any change in financial circumstances which may reduce their ability to repay the Loan or of any change in their address.
8. Members encouraged to save at the same time while you pay back your loan, at a minimum of £4 per month.
9. Loans of less than £2000 will be paid in cash and loans greater than £2000 will be issued via bank transfer or cheque. 
10. If the Borrower fails to pay any amount due to the Lender under this agreement, or breaches any of its terms, the Lender has the right to demand early repayment of all or part of the balance of the Loan outstanding, together with any unpaid interest. The Lender will give the Borrower written notice not less than seven days before taking any action to recover any such sum. The Borrower acknowledges that, if any loan agreements are not paid, or are not paid after the agreed time, this may result in the Total Amount Payable under the Agreement being greater than the sum set out in the Loan details.
11. The Borrower will be liable for any costs the Lender incurs in recovering sums due under the Agreement.
12. Loan interest is calculated daily, paying later or earlier will mean a higher or lower sum of interest charged. Paying higher than repayment detailed in the Loan Agreement will reduce the total amount of interest charged on a pro-rata basis.
13. By signing the loan agreement, the member consents to registration of these present and of any such Certificate as aforesaid for preservation and for execution.
14. By signing the loan agreement, a member agrees if they default on repayments, information about the loan may be passed on to the Department for Work and Pensions for their consideration of deductions from the benefits that they are or will become entitled to.
15.  We may report arrears and defaults to a Credit Reference Agency which may make it hard for you to obtain credit in the future. Information on how we will use your information can be found on our website or provided on request. 
16. Any Guarantor under a loan agreement will be liable for sums due under it which the Borrower fails to pay.
17. Members agrees to inform Tail O’ The Bank Credit Union immediately if they give or receive notice of termination of employment, change of address or any other circumstance which will affect their ability to make the agreed loan repayments, so that alternative methods of payment may be arranged.
18.  If circumstances change, and you have difficulty meeting the repayments of your loan, please contact the Credit Union as quickly as possible. We will try to help our members who have run into difficulties, but it becomes more difficult to help if arrears have been allowed to mount up without contacting us promptly.
19. The borrower agrees to comply with the terms of the loan agreement and will let Tail O’ The Bank Credit Union know if you will be absent on holiday or other planned absence so that loan repayments can be made in advance, or agreed to be deferred until your return, with a consequent effect on the overall amount of interest paid.
20. Although the Credit Union will do what it can to assist members who have genuine reasons for falling behind with repayments it should be noted that all legal measures will be taken to recover the loan arrears.
21. Should you default on any repayment of the loan, all of your shares up to the outstanding loan balance will be attached to the loan and you will not be able to withdraw these.
22. Should the loan be in arrears we can use funds from your savings to repay the loan, interest and any costs and expenses incurred by us the under agreement. We will contact you if we need to do this.
23. All loans are subject to approval and availability of funds.
24. Members personal details will only be used in accordance with the Data Protection Act 2018
25. Members personal details will only be shared with licensed credit reference agencies and for debt recovery purposes, should this be necessary.
26. We have loan protection cover that covers your loan in case of death. Subject to terms and conditions, restrictions apply based on age and cover limits.
27. We may make searches about you at credit reference agencies who will supply us with credit information as well as information from the Electoral Register. The agencies will record details of any search whether this application proceeds. We may use credit scoring methods to assist the application and to verify your identity. Credit searches and other information which is provided to us and/or the credit reference agencies about you and anyone with whom you are linked financially, or other members of your household may also be used for debt tracing and the prevention of money laundering as well as the management of your account. In addition, we may ask you to provide physical forms of identification and/or we may telephone you to confirm your identity.
28. To prevent or detect fraud or to assist in verifying your identity, we will make searches of group records and at fraud prevention agencies who will supply us with information. We may also pass information to financial and other organisations involved in fraud prevention to protect ourselves and our customers from theft and fraud. If you give us false or inaccurate information, details will be passed to fraud prevention agencies. We may use this information if financial or motor, household, credit, life or any other insurance decisions are made about you or others at your address(es). This information may also be used for tracing and claims assessments and verifying identity.
29. The maximum loan repayment period that the credit union can make loans over is 4 years for unsecured loans and 7 years for secured loan or such other term prescribed by law.
30. The maximum amount that can be loaned to a member is dependent upon the amount of capital held by the credit union and will be determined by the Financial Services Authority handbook, CREDS.