Hillingdon Credit Union

London Community Bank is the name Hillingdon Credit Union uses with its members, and it is a member-owned financial co-operative rather than a bank. It offers savings accounts and four types of loans, with a minimum regular saving of £2.50 per week or £10 per month where loans are below £1,000, and £20 per month where loans are above £1,000 [S72]. Members' savings are protected by the Financial Services Compensation Scheme, currently up to a total of £120,000 per member¹.

It takes savings from members and lends to members, and it offers four types of loan². Savings are protected by the Financial Services Compensation Scheme up to £120,000 per member¹. The maximum deposit balance it will hold is £80,000, and £1 must stay in the account to keep your membership³.

Savings and loans at London Community Bank

London Community Bank is the name Hillingdon Credit Union uses with its members. It offers savings accounts and four types of loans, and it is a member-owned financial co-operative rather than a bank. The credit union is authorised to accept deposits and to enter into regulated credit agreements as a lender, excluding high-cost short-term credit, bill of sale agreements and home collected credit⁴. That last point matters to a reader: the firm is not set up to sell the kind of very short, very expensive credit that payday lenders offer, and a credit union loan is a different product from that.

Credit unions generally work on a simple principle: members' savings are used to fund loans to other credit-worthy members⁶. That is why the two sides of the business are described together here. What you save does not sit idle, and what you borrow comes from the pool rather than from a bank's balance sheet.

The dividend is the credit union equivalent of a profit share, and credit unions generally distribute it annually⁷. The firm says it pays a competitive dividend and points to a separate page for recent rates, so the current figure is on its own site rather than here³.

If you are comparing this with a bank, the savings accounts guide sets out how ordinary deposit accounts work, and the credit unions guide explains the sector as a whole.

Who can join and borrow

Membership is the gate to everything else. Credit unions describe themselves as open to anyone who meets their membership criteria, and the same wording appears across the sector: anyone who meets the criteria can join and start saving and borrowing⁵. Only members may borrow, which is a rule credit unions state plainly on their loan pages⁸.

For London Community Bank specifically, the loan page states that you can apply for a loan if you are an existing member or on day one of joining, and that you must be aged 18 and above². So joining and borrowing are not separated by a waiting period in the way they are at some credit unions, though the firm still applies its own checks.

Those checks are the part that decides the outcome. London Community Bank says all loans are subject to its affordability checks, and that it will need to confirm your income, whether wages or benefits, and see a recent bank account statement less than 3 months old². For new members there is one extra condition: the first standing order payment must be made before drawdown².

A common feature of credit union lending is the link between saving and borrowing, and it is worth understanding before you apply. Credit unions usually expect a history of saving before they will lend, particularly for larger or longer-term borrowing⁹. The practical effect is that a member who has saved steadily for a few months is in a stronger position than one who joins and applies the same day, even where the firm accepts applications from day one.

How the savings account works

The savings account is a straightforward deposit account with a few rules that are specific to credit unions. You start a regular savings plan from as little as £2.50 per week³. You must keep at least £1 in the account at all times to retain your credit union membership³. The maximum deposit balance the firm will hold is £80,000³.

Members are paid a dividend rather than interest. Credit unions distribute profit shares to members annually and call them a dividend⁷. The firm describes its dividend as competitive and directs readers to a separate page for recent rates, so the current rate is published there rather than in this article³.

There is a conflict in the firm's own published figures on minimum regular saving. Its savings page gives £2.50 per week³, while its loan page describes a minimum of £2.50 per week or £10 per month for loans below £1,000². The two documents give different figures for what looks like the same requirement, and the difference is not resolved by anything in the material available. If the exact minimum matters to your budget, confirm it with the firm directly.

Loans: four types, fixed rates and no lending fees

London Community Bank offers four types of loan². The firm does not charge lending fees, processing fees or early repayment fees, and all its interest rates are fixed, so repayments do not move when the Bank Rate changes². That combination is unusual in consumer credit and is one of the clearest differences between a credit union loan and a payday loan or a typical bank overdraft.

The wider credit union sector makes the same claims in similar terms. Ulster Federal Credit Union states there are no hidden fees or transaction charges on credit union loans¹⁰, and Newington Credit Union states there are no application fees and no early repayment charges, with a fixed interest rate so repayments will not change¹¹. These are other firms' words, not London Community Bank's, but they show the pattern the sector follows.

Because the rates are fixed, the cost of a loan is settled at the point you take it out. There is no exposure to a Base Rate change during the term². For a borrower on a tight budget that is the main attraction: the repayment you agree is the repayment you make, unless you renegotiate it.

The firm does not publish its rates in this article, and this site does not carry the rates of named providers' products. Its own loan page sets out the key features of each of the four loans and the current rates². If you are weighing a credit union loan against other borrowing, the loans guide explains how the different types work and what each one costs in principle.

How saving is linked to borrowing

This is the feature that most surprises people who are used to a bank. When you borrow from London Community Bank, you must also save. The firm sets a minimum saving as a condition of the loan: £2.50 per week or £10 per month where the loan is below £1,000, and £20 per month for loans above £1,000². The savings account attached to the loan is locked until the loan is paid off².

So a borrower is building a savings balance at the same time as repaying. The money is not available to spend while the loan runs, but it is there at the end. That is a deliberate design: it gives the member a cushion and it gives the credit union the funds to lend to the next member⁶.

The wider sector describes the same arrangement in terms of what it enables. Credit unions usually let members borrow up to two or three times the amount they hold in savings, depending on the individual credit union's loan policy¹². Other guidance puts it at at least two or three times the savings balance, again depending on policy¹³. These are sector norms rather than London Community Bank's own published figures, and the firm's own limits are set out on its loan page².

The practical consequence is that the amount you can borrow tends to grow with the amount you have saved. A member who has built up a savings balance over a year is likely to be offered more than one who has just joined, even though the firm accepts applications from day one².

Applying for a loan and what you need

Applications can be made online through the members area, by downloading an application form and posting it, or by phone on 01895 250958². The firm says it aims to give you an answer within 24 hours once it has all the information².

What it needs from you is proof of income, either wages or benefits, and a recent bank account statement less than 3 months old². New members must also make the first standing order payment before the loan is drawn down².

Other credit unions ask for more. Calderdale Credit Union asks for three months of bank statements, three months of wage slips or proof of benefit income, and Housing Benefit and Council Tax Reduction notifications where they apply¹⁴. Bacup Credit Union asks for a completed loan application form and a promissory note¹⁵. Pennyburn Credit Union says it may request additional documents or a guarantor¹⁶. The pattern across the sector is that a credit union will want to see that the repayment is affordable from documented income, and that the paperwork is heavier than a payday lender's.

One rule that applies across credit unions is worth stating plainly: you need to be a member to apply for a loan¹⁷. At London Community Bank that means being an existing member or joining on the day you apply².

Making repayments and what happens if you miss one

Loan repayments are normally made direct from your savings account¹⁸. For one-off payments you can use a standing order from your bank account, your Engage Visa card, or a faster payment from your bank account¹⁸. Whichever method you use, the firm asks you to quote your member number in the reference field¹⁸.

Missing a payment has defined consequences. The firm says your loan will be in arrears if you miss one agreed repayment, and in default if you miss 3 or more¹⁹. All arrears and defaults are reported to its credit agency¹⁹. That reporting is the part that follows you: missed payments can affect your credit rating and make it more difficult to get credit in future²⁰. The credit scores guide explains how that record is built and how long entries stay on it.

If your circumstances change, the firm says it can often agree an alternative repayment schedule¹⁹. Other credit unions take the same approach and ask members to make contact as soon as possible so an alternative plan can be discussed¹⁴. Contacting the firm early is the difference between a rearranged plan and enforcement.

Where a member does not make contact or does not cooperate, the firm says it will take enforcement measures to recover what is owed, including transfer of savings, recovery by a debt recovery agency or bailiffs, or a county court judgement¹⁹. The transfer of savings is the one to understand: credit unions may be able to use your savings to repay the loan if you miss payments²¹. That is why the savings attached to a loan are locked².

How to bank with London Community Bank: online, card, phone and payroll

Members can save by standing order directly from their bank or Engage card, or by payroll deduction if they work for a participating organisation³. The payroll route is the one that makes saving automatic for employees of the organisations the credit union has agreements with.

The firm's contact number for calls from the UK is 01895 250958, and the number given for calls from overseas is +44 0895 250958⁵. The Engage card reporting line, for a lost or stolen card, is open 7 days a week, 24 hours a day⁵. General phone lines are not open around the clock, so check the current hours on the firm's own site before calling.

Applications for loans can be made online through the members area, by post, or by phone². The firm's address for correspondence is CR1, Civic Centre, High Street, Uxbridge, Middx, UB8 1UW²².

Credit unions in general offer a narrower range of access than a high street bank. Some provide online banking and a mobile app alongside telephone, email and an accessible office²³, and some offer a current account with online banking and a mobile app²⁴. London Community Bank's own channels are set out on its site³. If a full current account with a debit card and overdraft is what you need, the current accounts guide explains what banks and building societies offer and how switching works.

Making a complaint and going to the Financial Ombudsman

You can complain by email to info@Londoncb.co.uk, by phone on 01895 250958 between 10am and 2pm Monday to Friday, by letter to CR1, Civic Centre, High Street, Uxbridge, Middx, UB8 1UW, or through the online secure message service²².

The firm publishes two different response timescales depending on what the complaint is about. For complaints about products and services it says it will endeavour to conclude its investigation and issue a formal response no later than 8 weeks from receipt²². For complaints about the provision of payment services or electronic money it aims to complete its investigation and respond within 15 business days, extended to 35 business days in exceptional circumstances, with a holding letter explaining the delay²².

If you are not satisfied with the formal response, or no formal response has been issued eight weeks from first contact, you have the right to refer the complaint to the Financial Ombudsman Service²². The Ombudsman's own guidance is that a formal complaint to the company comes first, then the Ombudsman complaint form, after which a case handler is assigned to investigate²⁵. The service is free to consumers²⁶.

The eight-week deadline is a sector-wide standard rather than a quirk of this firm. Credit unions generally have eight weeks to investigate and give a final response²⁶, and credit union terms commonly state that the firm will aim to resolve a complaint and send a final response within eight weeks of receipt²⁷. Some credit unions resolve routine complaints much faster, within two working days, and acknowledge others in writing within five business days²⁸.

FSCS protection and staying safe from fraud

Savings with London Community Bank are protected by the Financial Services Compensation Scheme, currently up to a total of £120,000 per member¹. Credit union savings are protected by the FSCS in the same way²⁹.

The FSCS covers deposits and, separately, protects mortgage advice³⁰. If you suspect fraud involving the FSCS itself, you can report it through its contact page³¹. If you have been scammed, the FSCS advises speaking to your bank, building society or credit union, which can protect and reimburse victims of certain types of fraud, and reporting to Action Fraud³².

On fraud specifically, London Community Bank states that it will never ask you to transfer money to a new account, and that such calls or texts should be ignored⁵. It also states that it, the police or any other genuine organisation will never ask for your help in investigating crime⁵. If it needs to contact you about a potential fraud on your account, it says it will do so through a secure channel including SMS or email⁵. If you have just taken a suspicious call, it advises waiting at least 10 minutes after hanging up before making contact⁵.

The Bank of England makes the same point in its own guidance: no genuine organisation will ask you to move money for safety or to release funds³³. Card fraud guidance is consistent across sources: if your card is lost or stolen, it is reported to your bank immediately⁸. The Information Commissioner's Office advises reporting all lost or stolen documents containing personal information, such as passports, driving licences, credit cards and cheque books, to the organisation that issued them³⁴. Northern Ireland's guidance is the same: speak to your bank or building society straight away if you think your card, online bank account or cheque book has been stolen or hacked³⁵. Identity theft guidance repeats the point: lost cards, licences or passports are reported immediately to the issuer³⁶.

The firm's own security advice includes using fingerprint detection on mobile devices and a PIN with more than 4 numbers where possible, using 3G or 4G and 5G instead of public Wi-Fi when entering personal information, cancelling lost or stolen credit and debit cards immediately, and never giving your card PIN to anyone⁵. The scams and fraud guide covers the wider picture, including how to report a scam and what protection applies.