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Seamus G

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Review of the Clockwise Credit Union, Personal loans:

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Nottingham Credit Union Loan Charges - over 42%

I've always been supportive of Credit Unions and have always promoted them as my local credit union was a family lifeline when I was growing up in the 70s and 80s. I helped to develop a community credit union which eventually merged with the newly formed Nottingham Credit Union about 15 years ago. In Early 2024, I read an article saying that Credit Unions needed to lend out more quality loans. I had just returned from honeymoon, had a bank overdraft from Christmas costs and my company messed up my January and February salary so I was experiencing a mini financial crisis. So I approached the Credit Union as someone who had borrowed at least 12 loans previously to consolidate my debts of £6,000 to be repaid at £800 per month as my salary was now sorted and I could afford it. The Loans Officer got back to me to say that the decision was to provide me with a loan of £3,000 over 24 months @ 42.6% APR - yes you've read that correctly - 42.6% APR or 3% per month. I told them that I just wanted to support my Credit Union but it wasn't feasible to change my overdraft at 18% into a Credit Union loan at more than twice the APR. And that I only needed the debt for about 6 or 7 months and that I didn't want to be indebted for two full years. He said that their charges were loan industry standard. I just couldn't believe the poor advice I was being given and felt saddened that my Credit Union has turned into a higher-cost loan provider. So I just asked my bank for the £6,000 which was in my account within 9 minutes @ 14.2% - one third the cost that the Nottingham Credit Union was trying to charge me as a member of 22 years with no payments missed. So my advice is to use the Credit Union for very small loans under £1,000 but be careful what they charge you for higher loans above £1k - they say they are ethical but they didn't prove it on this occasion. I'm no longer a member. Reviewed on: 15th May 2024

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