Castlemilk Credit Union

Castlemilk Credit Union is a not for profit community lender serving people who live or work in the G postcode area. It is a credit union, which means it is owned by its members and provides loans, savings, bank accounts and other services to them rather than to the public at large¹. To join you must be 18 or over and either live or work in the G postcode area².

It is authorised by the Financial Conduct Authority under firm reference number 213657, and its authorisation has been effective since 2 July 2002³. It also appears on the Bank of England's Prudential Regulation Authority list of credit unions incorporated in the UK⁴. Savings held with it are covered by the Financial Services Compensation Scheme, the same protection that applies to money in a bank⁵.

This page covers what the credit union offers, who can join, how to bank with it, what happens if you fall behind with repayments, how to keep your details safe, how to complain, and how your savings are protected.

What Castlemilk Credit Union is and who it serves

Credit unions are not for profit community lenders providing affordable loans and savings⁵. They exist to help members in need of financial support, and they provide access to fair and affordable credit for people with a poor credit history, including those who cannot access mainstream forms of credit or who may not know about affordable providers⁵. The wider community lending sector, which includes credit unions and community development finance institutions, is a growing source of affordable credit but still has limited reach⁷.

Castlemilk Credit Union follows that model. It is a member-owned organisation, so the people who save and borrow are the people the organisation exists for. You must be a member to get a loan from a credit union, so joining comes first⁸. Membership is not the same as a customer relationship with a bank: members have a say in how the credit union is run, and any surplus is used for the benefit of members rather than paid to outside shareholders.

The credit union's common bond, the rule that defines who it serves, is the G postcode area². That is a geographic common bond rather than one based on an employer or trade, which is the most common arrangement. Credit unions in Great Britain are regulated by the Financial Conduct Authority and the Bank of England's Prudential Regulation Authority⁹.

For a wider picture of how these organisations work and how they differ from banks, see Credit unions: a complete guide.

Who can join: living or working in the G postcode area

To join Castlemilk Credit Union you must be 18 years or over and either live or work in the G postcode area². You do not have to live in Castlemilk itself. The test is the postcode area, so someone who works in Glasgow but lives elsewhere in the G area, or the reverse, meets it.

Credit unions generally set a common bond, and the usual formulation is that a member must either be living or working within that area¹⁰. Some credit unions extend membership to family members: as long as one member of a family meets the common bond requirements and has joined, other family members living at the same address can usually join too¹¹. If you are outside the G postcode area, another credit union may cover where you live or work, and the trade body's finder tool can help you locate one¹².

When you apply, expect to prove who you are and where you live. Credit unions usually ask for two recent documents to prove identity and address, such as a passport, driving licence, student or work ID card, bus pass, birth certificate, bank statement or energy bill¹. The simplest approach is to visit or call the credit union first to confirm exactly what it needs before you gather documents¹².

Accounts for children and young people

Castlemilk Credit Union offers a juvenile account for members under 18. Its guidance states that under 18s can sign up for a juvenile account by themselves or with a parent or guardian². That is a wider route than many credit unions offer: some require a legal parent or guardian to open the account¹³, and others restrict junior accounts to children under 16¹⁴.

The age at which a young person can act alone varies across financial products. From age 16 you can open a bank account without asking your parents¹⁵. A Junior ISA works differently: for children under 16 only a parent or legal guardian can open one, while children aged 16 or 17 can open their own¹⁶. So a teenager has several routes, and the right one depends on what the money is for and how long it will be left alone.

Junior savings accounts at credit unions are usually designed for regular small deposits, with withdrawals restricted to protect the savings. Some credit unions require written approval from the parent or guardian who opened the account before a withdrawal, and both signatures once the child is 7 or over¹⁴. Ask Castlemilk Credit Union what its own junior account allows before you open one.

For the wider picture on children's savings, including Junior ISAs, see Savings accounts: a complete guide and ISAs: a complete guide.

How to bank with Castlemilk Credit Union

Credit unions deliver their services in different ways. Some offer online and phone banking, some run a payroll partnership with your employer, and some operate a local branch or service point you can walk into¹⁷. Castlemilk Credit Union's own website is at www.castlemilkcu.co.uk, where its membership and service information sits³.

How you apply varies between credit unions. Some open accounts instantly if you call into the office with photo and address identification¹⁸. Others let you apply online¹⁹. Some loan applications are made by registering for online access, completing an online application, connecting Open Banking and providing supporting documents²⁰. Payment methods also vary: some credit unions accept deposits and loan repayments in the office, by standing order, bank transfer or chip and pin²¹.

Because these arrangements differ from one credit union to the next, the practical step is to check Castlemilk Credit Union's own site or contact the office to confirm how it takes applications, how you pay in, and whether it offers online access. The general rule for any credit union is the same: visit or call to confirm what information you need to join¹².

For the products themselves, see Savings accounts: a complete guide, Loans: a complete guide and Current accounts: a complete guide.

If you fall behind with repayments

If your circumstances change and you cannot keep up with repayments, contact the credit union as soon as possible so an alternative payment plan can be discussed¹⁹. That is the same advice that applies to any lender: if you think you might miss a payment, contact the lender quickly and talk through your options²².

There is a specific feature of credit union lending to understand. If you miss payments on a loan, the credit union may be able to use your savings to repay the loan²³. Because members usually borrow against a record of saving, the savings and the loan are linked in a way they are not at a bank. That is worth knowing before you borrow, because it means money you have set aside may be applied to the debt.

Missing payments has consequences beyond the credit union. A default usually appears on your credit file after you have missed between three and six months' payments²⁴, and extra charges are added if you miss payments on credit card debt²⁵. If you do not meet the repayments on a loan, your account goes into arrears, which may affect your credit rating and limit your ability to access credit in future²⁰.

If money is tight, free and impartial help is available. StepChange and National Debtline both offer debt advice at no cost, and the credit union itself should be your first call. For the full range of options, see Debt: a complete guide to help, solutions and your rights.

Keeping your security details safe

Castlemilk Credit Union defines your security details as the unique information you provide online, over the phone or in person that identifies you and your accounts²⁸. Its own guidance lists account number, National Insurance number and address as examples²⁸. Other credit unions use the same definition and add a password, PIN number and security questions to the list²⁹.

The rules the credit union sets out are straightforward:

• Memorise your security details and securely destroy anything containing them as soon as you have received and remembered it²⁸.
• Never allow anyone else to use your security details²⁸.
• When you set or change them, make sure they cannot be easily guessed²⁹.
• Always be sure you know the person you are sending money to and that you are comfortable with the reason you are sending it²⁸.

Good habits beyond the credit union help too. Check your bank and credit card statements regularly for suspicious activity and monitor your credit report³⁰. Store documents carrying personal information, such as your driving licence, passport, bank statements and utility bills, in a safe and secure place³¹. If documents are lost or stolen, report them to the issuer, check your statements and credit report, watch out for phishing, use strong passwords and multifactor authentication, and consider applying for Cifas protective registration³².

What happens if fraud is suspected on your account

Tell the credit union straight away if you suspect or discover that someone else knows your security details, or if you believe your security details may have been misused²⁸. Monitor your accounts and tell the credit union about any activity or transactions you do not recognise²⁸.

If fraudulent activity is suspected, the credit union may suspend your account until it is satisfied your account is safe²⁸. That is a standard response across credit unions, not a penalty: the account is frozen while the position is checked. If you think your card, online bank account or cheque book has been stolen or hacked, speak to your bank, building society or credit union straight away³³.

There is help beyond the firm. Speak to your bank, building society or credit union, which can protect and reimburse victims of certain types of fraud, and report the matter to Action Fraud³⁴. If fraud has been committed against you, for example if someone has used your identity, there may be a marker against your name to protect you, and you will be able to see this on your credit file³⁵.

For more on spotting and reporting fraud, see Scams and fraud: a complete guide and Credit scores and credit reports: a complete guide.

Making a complaint to Castlemilk Credit Union

You can make your complaint known to Castlemilk Credit Union in person at the branch, over the phone, by email or in writing⁶. The credit union acknowledges complaints within 3 working days from the date the complaint was received, and states that all complaints should be resolved within 8 weeks, with a copy of the resolution sent to you in writing⁶. It will provide you with a copy of its internal complaints procedure on request⁶.

That timescale matches the wider rule. Credit unions have eight weeks to investigate and give you their final response¹. Across the sector, most routine complaints are resolved within two working days, and the credit union will attempt to resolve the matter within eight weeks of receipt³⁶. Complaints can be made in person, by email or by letter, and verbal complaints are entered on a complaints form³⁶.

Credit unions and other FCA authorised consumer credit firms must have a formal complaints procedure³⁷. If you want to be sure your complaint is being handled correctly, ask the company for a copy of its complaints procedure³⁸. If eight weeks pass without a final response, or you are unhappy with the outcome, you can take the complaint to the Financial Ombudsman Service¹.

If you are in Northern Ireland, the Consumer Council runs a complaints handling service that requests copies of all communication between you and the company, contacts the company on your behalf, reviews the complaint and keeps you informed of the response³⁹. You can submit a complaint to it online, by phone, letter or email⁴⁰.

How your savings are protected

Loans and savings with credit unions are protected by the Financial Services Compensation Scheme⁵. All shares, which is what savings in a credit union are called, are eligible for protection under the scheme⁴¹. This is the same protection that covers money held with banks and building societies, and it means your savings are not lost if the credit union fails.

The scheme is the backstop, not the first line of defence. Credit unions are regulated by the Financial Conduct Authority and the Bank of England's Prudential Regulation Authority, which set the rules they must meet on capital, lending and how they are run⁹. Castlemilk Credit Union Limited is authorised by the FCA under firm reference number 213657, effective from 2 July 2002, and appears on the PRA's list of UK incorporated credit unions³. You can check a firm's status yourself on the FCA register.

One point to understand about credit union savings is that they are shares in the organisation rather than deposits in the ordinary sense, which is why the term shares is used. That does not change the protection: the scheme covers them⁴¹. Any dividend paid on savings is not guaranteed and is added after the annual general meeting, so savings should not be treated as a fixed return product⁴².

For how this compares with other places to hold money, see Savings accounts: a complete guide and Consumer protection in UK financial services: a complete guide.