Croydon Caribbean Credit Union

Croydon Caribbean Credit Union is a not-for-profit credit union for people who live or work in the London Borough of Croydon. It takes savings from members, lends that money back out as loans, and pays a dividend rather than interest when the year goes well. Membership is open to anyone who meets the common bond, which here is where you live or work, and members get one vote each in how the credit union is run¹.

The practical shape of it is simple. You need a minimum to open a savings account and must keep at least that amount in it to keep it open, with a lower maximum deposit for young savers than for adults². There is a non-returnable joining fee, and after that no account fees, maintenance costs or charges². Loans are only available to members, and you can pay a loan off early, make lump sum repayments or increase your regular repayments without a penalty¹.

Savings with the credit union are protected by the Financial Services Compensation Scheme, the same scheme that covers money in a bank or building society². The sections below set out each product, who can join, how to pay in and take money out, and where the protection stops.

What Croydon Caribbean Credit Union offers members

The credit union does two main things: it takes savings and it makes loans. That is the standard model across the movement, and all credit unions offer savings and loans⁵. Members' savings are used to fund loans to other credit-worthy members, which is why the two products are inseparable: your deposit is somebody else's borrowing⁶.

Alongside the core savings and loan accounts, the credit union provides insurance cover for eligible members at no direct cost, and pays a return on savings through an annual dividend and a loan interest rebate³. Members enjoy equal rights to vote on a one member, one vote basis⁴.

Credit unions generally are not-for-profit community lenders providing affordable loans and savings, and larger ones add services such as Christmas savings accounts, cash ISAs, budgeting accounts, current accounts and debt management⁵. Some credit unions offer current accounts to members, though features vary between them⁸. Croydon Caribbean's own product set is narrower than the largest credit unions, so if you need a current account or an ISA it is worth asking what it can offer before you assume.

For the wider picture of how these organisations work, see credit unions: a complete guide.

Saving with Croydon Caribbean: how shares and deposit limits work

Your savings at a credit union are technically your shares in it, which is why the language of "shares" and "savings" is used interchangeably. The limits matter more than the label. Croydon Caribbean sets a maximum deposit for adults and a lower one for young savers, and you must keep a set minimum in the account to keep it open².

Those ceilings are typical of the sector rather than unusual. The reason is prudential: a credit union's lending capacity is tied to its capital, and a very large single deposit cannot be lent out proportionately.

Two practical points follow. First, if you are saving towards a large sum, a credit union savings account is not designed to hold it indefinitely, and you would need somewhere else for anything above the limit.

For how credit union savings compare with other accounts, see savings accounts: a complete guide.

How savings earn a return through dividends

Credit unions do not usually pay interest. Instead, if the year produces a surplus, the members agree a dividend at the annual general meeting and it is paid out on savings¹⁰. The credit union describes the return on your savings as coming through annual dividends and a loan interest rebate³.

The mechanics are worth understanding because they change what you can expect. Profit made by a credit union is shared evenly among savings accounts as a dividend, with some reinvested to improve services⁵. Dividends are normally paid annually, and the amount depends on how much you have saved and how much profit the credit union made¹¹.

The consequence for a saver is that the return is not guaranteed and not fixed in advance. A dividend is agreed only once the annual accounts are approved and only if there is sufficient profit after setting aside the required reserves¹⁴. In a poor year there may be no dividend at all. That is the trade-off for a mutual structure where members, not outside shareholders, receive the surplus.

Croydon Caribbean loans: early repayment without penalty

Loans are available to members only, and you have to be a member of Croydon Caribbean Credit Union before you can apply¹. The credit union advertises competitive loan interest rates and describes its loan products as suited to individual needs at rates members can afford³. Applications are made by visiting or calling to discuss your needs and collect an application form¹.

The feature that stands out is flexibility on repayment. You can pay off your loan early, make additional lump sum repayments or increase your regular repayments, without a penalty¹. That is standard across the credit union sector rather than unique to Croydon Caribbean: Willowfield, Pomeroy, Sion Mills, Capital, Islay & Jura, Ulster Federal, Termonmaguirk, Bannvale and Cambrian credit unions all state the same absence of an early repayment charge¹⁵.

Depending on the amount you borrow and your credit history with the credit union, you may be asked for recent current account or credit card statements, mortgage statements or confirmation from a mortgage lender, proof of purpose, and copies of benefits or pension information if you are on social welfare¹.

One caution that applies to credit union borrowing generally: credit union loans are not automatically cheaper than a bank personal loan, and independent guidance notes they are often more expensive than personal loans from a bank or building society²⁴. The advantage is usually access and flexibility rather than headline price. For the wider market, see loans: a complete guide.

Insurance cover included with membership

Eligible members get Loan Protection, Life Savings and Death Benefit insurance at no direct cost². Your credit union loan is insured, subject to terms and conditions, at no direct cost to you¹. Life Savings Insurance protection applies to savings that are kept intact⁴.

The three covers do different jobs. Loan protection means that if a borrower dies, the loan is settled by the insurance rather than falling on the estate. Life savings insurance pays a multiple of savings to a nominated person on the member's death, provided the savings have been left in place. Death benefit insurance pays a fixed sum towards funeral costs.

These are not products the credit union underwrites itself. It is a legal requirement that all credit unions have insurance in place to cover members in the event of dishonesty or robbery, and the member covers are arranged through an insurer²⁵. If you want to know who provides the cover and exactly what the terms and conditions exclude, ask the credit union for the policy documents, because eligibility conditions apply and the covers are not automatic for every member in every circumstance.

Fees and charges

There is a non-returnable joining fee, paid with your application². After that the credit union states there are no account fees, maintenance costs or charges, and no hidden fees or transaction charges on its loans¹. Ask the credit union for the current amount of the joining fee and the minimum savings balance, because these are set by the credit union and can change.

That is a simpler structure than many credit unions operate.

Because Croydon Caribbean's own fee position is stated as no charges beyond the joining fee, the main thing to check is whether any fee applies to a specific service you want, such as a same-day withdrawal or a replacement card. Ask before you use the service rather than after.

Who can join Croydon Caribbean Credit Union

Membership of a credit union is based on a common bond, which is what all members have in common¹. At Croydon Caribbean the common bond is where you live or work: you can join if you live or work in the London Borough of Croydon². If you qualify through your employer rather than your address, you will need a letter from your employer².

The common bond is the defining feature of the whole sector. Anyone can become a member of a credit union, but you must share a common bond with the other members, such as living in the same area or working for the same employer⁸. In practice this means you cannot simply pick any credit union in the country: you join the one whose bond you fall within. Anyone in the house of a person with a common bond can usually join as well, so a partner or child living at the same address may qualify through you²⁷.

If you are not sure which credit union covers you, the sector's own finder service can help you locate one⁵. For the general rules on eligibility and how the model works, see credit unions: a complete guide.

How to join: application form and identification

You need to complete a member application form and present two forms of identification³. The two forms come one from each of two sections: evidence of identification and evidence of address².

Evidence of identification must show proof of your date of birth and a recent photo, such as a current valid passport or a current valid driving licence². Evidence of address confirms where you live. If you are joining through your employer, a letter from your employer is also required².

The pattern is consistent across the sector. Islay & Jura Credit Union asks for a membership form taken to a collection point with photo identification and proof of address dated within the last six months²⁸. Muckamore Credit Union asks for a membership application form and two forms of identification, one photographic and one confirming your address²⁹. Because credit unions vary in what they accept, the general advice is to visit or call your chosen credit union to confirm what information you need before you turn up⁸.

Once you are a member, applying for a loan is a separate step: visit or call, discuss what you need, and collect an application form¹.

Paying in and withdrawing money

You can pay into your savings or pay off your loan by standing order without calling in³. A standing order is set up with your own bank so that money transfers automatically each month from your current account to your savings account, and you can set one up through online banking³⁰.

The credit union also accepts bank transfer, debit card payment over the telephone, a salary savings scheme, and payments from Child Benefit and Universal Credit¹⁴. Across the sector, members can pay in by payroll deduction or through benefit direct accounts, through retail payment networks such as PayPoint and PayZone, by standing order or direct debit, or in cash at local offices and collection points⁸. Some credit unions accept cash, cheque or debit card in branches, by telephone, or online through a member area¹⁶.

On withdrawals, you can take your savings out provided they are not pledged as security on a loan⁴. Where shares are pledged against borrowing, they are not instantly available, because the credit union holds them as security³². Credit unions generally pay withdrawals by cashing a cheque at a local Post Office, in cash at the credit union office, by payment directly into a bank account, or by debit card at a cash machine where the credit union operates a current account⁵.

How your savings are protected

Savings with Croydon Caribbean are protected by the Financial Services Compensation Scheme². Eligible deposits in Croydon Caribbean Credit Union Ltd are protected by the FSCS, and an eligible depositor is entitled to claim up to £120,000². Loans and savings at credit unions are protected by the scheme, and credit unions are not-for-profit community lenders providing affordable loans and savings³⁴.

The £120,000 figure is the one to work from now.

Two limits are worth separating. Protection also depends on the firm being authorised: Croydon Caribbean Credit Union Limited is authorised by the FCA under reference 213308, with a status effective date of 02/07/2002, and it appears on the Bank of England's list of UK-incorporated credit unions³³.

If something goes wrong with a credit union, the Financial Ombudsman Service can look at complaints about firms it regulates, and the FSCS handles claims if a firm fails. For how these protections work in general, see consumer protection in UK financial services and credit unions: a complete guide.

Contacting Croydon Caribbean Credit Union and complaining

The credit union's own website is at www.cccreditunion.co.uk, and it publishes a loans page, a savings page, a membership page and a frequently asked questions page¹. Applications and loan discussions are handled by visiting or calling, and the credit union asks members to get in touch to discuss their needs and collect an application form¹.

If you have a complaint, the route is the same as for any regulated financial firm. Raise it with the credit union first and give it the chance to put things right. If you are not satisfied with the final response, you can take it to the Financial Ombudsman Service, which is free to consumers. The FCA Register entry confirms the firm's authorised status and reference number, which you will need when you complain³³.

If you are struggling with debt more broadly, free and impartial help is available from MoneyHelper and from debt advice charities such as StepChange, and credit unions themselves are cooperative financial institutions rather than commercial lenders²⁷. Some credit unions run confidential and free support for members struggling with loan or mortgage payments, with no judgement³⁶. If you are behind on payments, the earlier you ask, the more options there usually are.