Upload
jack-joseph
View
219
Download
0
Tags:
Embed Size (px)
Citation preview
Affordable borrowing and saving Challenges and solutions from contrasting Credit Unions…..
Sally ChickenRainbow Savers
Mirca MoreiraCircle Housing Money
What is a Credit Union?
Credit Unions are financial co-operatives offering an alternative to high street, doorstep andhigh cost lenders
Credit Unions are regulated and protected by:
• Financial Conduct Authority (FCA)• Prudential Regulation Authority (PRA)• Financial Ombudsman Scheme (FOS)• Financial Services Compensation Scheme (FSCS)
You can recommend a Credit Union without any worry about being viewed as a financial promoter
Head Office: 229 London Road South, Lowestoft, Suffolk, NR33 ODSPeterborough Shop: 3 Cattlemarket Road, Peterborough, PE1 1TW
Website: www.rainbowsaver.co.uk
Fenland:Oasis Centre: St Michael's Ave, Wisbech PE13 3NR, Thursday 12-2pm
Rosmini Centre: 69A Queens Rd, Wisbech PE13 2PH Tues 2-4pm
Barclays Bank: Wisbech by appt
Local Cambridge groups:City Centre: Mandela House, Regent St, Mon & Thurs 11-1pmCherry Hinton: Baptist Church Family Centre, off Fishers Lane, Tues 2-4pm (temp closed for refurbishment)Histon/Impington:St Andrew’s Café, School HillHiston CB24 9JE Fri 11am -1pm
Who do we help – Rainbow Savers
– People who have been refused a bank account – People who have a post office card account– People whose basic bank account is so limited it is no use
to them – People with inadequate ID/Address documents– People with literacy limitations or mental health issues– People with chaotic lifestyles i.e. homeless or substance
abuse– People who have a finance related criminal record– People who have a current or previous DRO or
bankruptcy– Anyone who wants an alternative to a bank account– People who want a small loan alternative to a doorstep
lender or predatory lender
Our main services – Rainbow Savers
• Budgeting and Savings accounts: Xmas Club, Junior Savers,
• Jamjar Budgeting accounts• Group accounts • Cheque processing at no charge• Housing Benefit Processing• Wages or DWP benefit processing• Pre-paid Visa Debit Card • Loans of up to £2,000 (average £300)• Local training to volunteer groups
Circle Housing Money – who do we help?
• Circle Housing Money (CH Money) is our partnership between Circle Housing and Leeds City Credit Union (LCCU)
• It supports the delivery of a consistent package of affordable financial services, including savings accounts, affordable loans and alternative banking products, to customers and colleagues, no matter where they live
• Available to Circle Housing customers, Centra Care and Support customers and Circle Housing (and Centra) colleagues
• Supports Circle’s mission of enhancing life chances – support customers to live independently and be more financially resilient.
Credit Unions support people towards financial resilience
Confident managing money
(confidence, knowledge, skills, motivation, ability to make informed
choices)Less stressed about financial
situation or money issues
More able to deal with financial shocks
Able to meet outgoings(Including
rent)
Able to meet aims & aspirations – life
chances(e.g. support back
to work, skills, education, health)
1,300Circle customers
have incurred a bank charge in last 12
months
57%Circle customers who prefer to use cash to
pay for things
63%Circle customers say they don’t know how they would cope with
less money30%Circle customers say thinking about their
finances keeps them awake at night
4%Circle customers are
without a bank account
38%Circle customers save
regularly
34%Circle customer
borrowing in last 12 months came from high
cost credit sector
35%Circle customers have incurred a bank charge
in last 12 months
30,762People sought help with payday loans between
Jan – June 2013, nearly the same
amount as for the whole of 2012 (StepChange)
What products does CH Money offer? Savings Accounts
•Membership Account•Christmas Club •Regular Saver•Loyalty Saver•Young Saver
Transactional Banking Products
•Current Account•Bill Paying Account•Pre-paid Card
Affordable Loans
•Affordable and Responsible Loans
Instant Savings Accounts – comparing services
CH Money
Membership Account
•Basic entry level, instant access savings account , which every adult member gets
•£5 automatically gets deposited into this account on joining
•To use the Membership account members need to save £13 per month if they earn a wage, or £5 per month if they are unemployed
Rainbow Saver
Membership account
•£2 in account at all times
•No minimum saving requirement
Savings compared (cont.)
CH Money
Christmas Club Account
•Lets you save as much or as little as you want throughout the year
•Customers can save from January to October and get access to their money on 1st November
Rainbow Saver:
Christmas Club account
•Save minimum £2 per week
•Many members choose more
•No restrictions on deposits or
withdrawals
•Minimum opening amount is £2
•Funds released on 1st November
Affordable and responsible Loans
CH Money
You can apply for a loan once you a member of Circle Housing Money. The amount customers can borrow will be based on how much they can afford to repay, from £100 to £15,000. As a credit union, interest rates are capped at a maximum of 42.6% APR, each loan is assessed on individual merit and appropriate interest rate applied.
The interest on loans is calculated on a daily basis so as you pay back the money, the extra you have to pay goes down too. And there's no extra charge if customers decide to pay back the loan earlier than expected.
Rainbow Saver
Exactly the same except maximum loan is £3,000, rates vary from 12.7% APR to 42.6% APR
No set up fees and no hidden charges
Flexible Banking
CH Money
Current Account
•Will receive income from wages, pensions or benefits e.g. UC payments
•Customers can withdraw cash from ATM’s and can upgrade to a debit card after 3 months
•Quarterly statements and customers can keep track of their money online
•Transparent banking so we are clear about monthly fee and small charges that apply to this account:
Rainbow Saver does not have a current account, uses the pre-paid VISA Debit card service instead
Flexible Banking (cont.)
CH Money
Bill Paying Account
This is an excellent budgeting tool for customers who want help with managing their money when they move onto Universal Credit :
•Customers pay in a fixed monthly amount to cover the cost of agreed bills like rent and then they are paid for them to make budgeting easier
•Bills can be set up to be paid either weekly or monthly
•£2 monthly fee and 5% is added in case any bills go up unexpectedly
Rainbow Saver
Jamjar accounts
•Chosen by member, some choose
lots with different names, some just
choose a generic one.
•Member needs to show bill for the
customer ref number to be put on our
computer for ease of payment
•No charge for paying out to creditors
•Bills paid on request by email or
post or phone call, or set up to pay a
set amount each week/month
Flexible banking
CH Money
Pre-paid Card
•Allows you to withdraw cash from ATMs or buy things in shops or online and get cashback
•Customers choose how much to load onto the card
Customers can check their
balance by phone, text or online
•No overdraft facility so there are no charges for going overdrawn
• There are small charges that apply to this account
Rainbow Saver
Pre paid card
Any income can be paid in i.e. wages, DWP benefits including UC, cheques, cash using PayPoint card or local access point.
Online access to pre-paid Debit card spending, can check balances by phone or text message to
Very low cost of card, 50p per load, 75p to use ATM but instore cashback is at no charge, online shopping no charge
From 2016, 25p per week account charge
CH Money
New Tenants Package
Offering membership, small loans to cover settling in & household appliances and budgeting accounts & encouraging saving where possible
Partnership in place between LCCU and Coop Electrical offering discounted new white goods and other household appliances
Innovation……some examples
Rainbow SaversLife insurance
In discussion at present with a not-for-profit company to offer a lump sum pay-out in the event of death, available to 18-65 year olds
Annual charge estimated to be £15 for £5,000 pay-out
We expect to tie this in with a Funeral Jamjar for people over 55 to start saving towards a funeral bond to purchase at age 65 when they reach the age limit
Any Questions?