Lurgan Credit Union

Lurgan Credit Union is a credit union based in Northern Ireland that offers savings accounts and personal loans to its members. Like all credit unions, it is a member-owned organisation: the people who save and borrow are the members, and it exists to serve them rather than outside shareholders¹. Its personal loans come with free loan protection insurance for eligible members and no penalties for early repayment².

If you are considering joining or already have a loan or savings account with it, the practical questions are what it offers, how repayments work, what happens if a payment is missed, how to complain, and how your money is protected. This page covers each of those in turn.

Lurgan Credit Union loans and savings

All credit unions offer savings and loans, and Lurgan Credit Union is no exception¹. Its savings accounts let members build up funds, and its personal loans are available to members who meet its lending criteria. Credit unions generally offer a range of savings accounts, and larger ones may also provide Christmas savings accounts, ISAs, budgeting accounts, current accounts and debt management services, though the exact range varies by credit union¹.

Lurgan Credit Union's personal loans are designed to be repaid over a set term. Loans of £15,001 to £60,000 must be repaid within 10 years². The credit union states that a borrower must be able to afford the loan repayments, including interest, over the full duration of the loan, and that loans are subject to terms, conditions and credit checks². It also offers flexibility to increase payments and no penalties for early repayment².

Credit unions more broadly are known for offering loan products suited to individual needs and at rates members can afford⁸. They are often listed as an alternative to high-cost short-term credit such as payday loans⁵. If you are comparing borrowing options, the loans guide sets out how different types of loan work and what to check before applying.

For savings, credit unions offer a straightforward way to put money aside. The savings guide explains how savings accounts work, and the credit unions guide covers the sector as a whole.

Free loan protection insurance on personal loans

Lurgan Credit Union provides free loan protection insurance on its personal loans to eligible members². This is a form of cover that pays off the outstanding loan balance if the borrower dies, so the debt does not pass to their estate. Most credit unions offer free life or loan-protection insurance of this kind¹.

The insurance is provided by the credit union to eligible members, and eligibility conditions apply. It is not a product the member buys separately or pays a premium for. If you want to know whether a particular loan qualifies and what the conditions are, the credit union's own loan documentation sets that out.

This is distinct from payment protection insurance or income protection, which are separate products a borrower might choose to take out. The protection guide explains how life, income and illness cover work if you are considering additional cover.

Repaying a loan by Direct Debit

Lurgan Credit Union collects loan repayments by Direct Debit. A Direct Debit is an instruction from you to your bank or building society that lets the credit union collect payments from your account⁹. The credit union does not charge for setting up, amending or cancelling Direct Debits⁴.

It takes three weeks for Lurgan Credit Union to set up a Direct Debit with your bank⁴. By comparison, some other organisations state that setting up Direct Debit payments may take up to 10 days¹⁰. The timescale depends on the organisation and your bank.

If your Direct Debit is due on a weekend or a bank holiday, your account will be debited up to three working days later⁴. The credit union states it cannot debit the money earlier than the day it is due⁴.

Direct Debits continue at the same values unless amended or cancelled⁴. If you want to change the amount, date or frequency, the credit union needs a minimum of one week's notice to process an amendment or cancellation⁴. Separately, a Direct Debit can be cancelled at any time by contacting your bank or building society, though written confirmation may be required, and the organisation should also be notified⁹.

If there are changes to the amount, date or frequency of your Direct Debit, the organisation will normally notify you 10 working days in advance⁴. This reflects the Direct Debit Guarantee, which requires advance notice of changes¹¹.

When a Direct Debit is late, unpaid or still running

If a Direct Debit payment fails, the consequences depend on what the payment was for. Lurgan Credit Union states that if a Direct Debit pays a loan and you do not meet the repayments, your account will go into arrears and this may affect your credit rating⁴. If a Direct Debit is unpaid, the credit union is unable to call it again⁴.

Direct Debits that are still running after a loan is repaid will continue at the same values unless amended or cancelled⁴. This means that if you pay off a loan early or complete the term, you may need to contact the credit union to cancel the Direct Debit if you do not want it to continue.

Missed repayments and your credit rating

Missing loan repayments has consequences beyond the immediate arrears. Lurgan Credit Union states that if you do not meet the repayments on your loan, your account will go into arrears, which may affect your credit rating and limit your ability to access credit in the future².

Missed payments are recorded on your credit file and can make it harder to get credit in future¹². A default usually happens after you have missed between three and six months' payments¹⁴. When you miss payments on a debt and cannot get up to date within 14 days, this is a default¹⁶.

If you miss payments on a credit union loan, the credit union may be able to use your savings to repay the loan¹⁷. This is a feature of credit union lending that borrowers should be aware of: savings held with the credit union can be offset against a loan in arrears.

If you are struggling with repayments, free and impartial help is available. StepChange Debt Charity and National Debtline both provide free debt advice. The debt guide sets out the options, and the credit scores guide explains how missed payments affect your credit file.

Making a complaint to Lurgan Credit Union

Lurgan Credit Union has a complaints procedure. A complaint can be made in person, by letter, by telephone or by email, in writing or orally to an officer or volunteer, at any place the credit union conducts business⁶.

The credit union aims to resolve complaints to the complainant's satisfaction by the close of business, three business days after the day on which the complaint was received⁶. If the complaint cannot be resolved within three business days, an acknowledgement will be sent including the name or job title of the person handling the complaint and the internal complaint handling procedure⁶.

If the complaint is still unresolved within 8 weeks of receiving it, the credit union will send a final response, or a response explaining the delay and advising when a final response can be expected⁶.

A complaint can be made by a credit union member or minor depositor, a potential or former member or minor depositor, or a nominated beneficiary or personal representative of such a person, who is a private individual⁶.

If you are unhappy with a lender's response and have received a final response letter, you can contact the Financial Ombudsman Service to make a complaint about the lender¹⁹. You have the right to complain to your lender if they gave you credit irresponsibly and you are now struggling financially as a result¹².

Taking a complaint to the Financial Ombudsman Service

Lurgan Credit Union is covered by the Financial Ombudsman Service⁶. If you are dissatisfied with the credit union's final response, you may refer the complaint to the Financial Ombudsman Service within 6 months of receipt of the final response⁶.

The Financial Ombudsman Service is free to consumers. Consumers who feel they have been given unaffordable credit, or that the lender acted irresponsibly in providing the product, may be able to complain to the Financial Ombudsman Service²⁰. Under the Consumer Credit Act 2006 there are rights to complain to the Financial Ombudsman Service about how your lender treated you²¹.

If you are unhappy with the service you have received from a claims company, for example the results of your claim or the fees they have charged you, you can complain to the Financial Ombudsman Service²². If you are unhappy with a response from a firm, you can take the matter further by referring it to the Financial Ombudsman Service²³.

The Financial Ombudsman Service can determine if a provider treated you fairly and reasonably²⁴. If you are not happy with your lender's response and have received a final response letter, you can contact the Financial Ombudsman Service to make a complaint¹⁹.

How your savings are protected

Credit union loans and savings are protected by the Financial Services Compensation Scheme⁵. This means that if a credit union failed, eligible members' savings would be covered up to the FSCS limit. The FSCS is the UK's statutory compensation scheme for financial services.

Lurgan Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority⁶. It appears on the Bank of England's list of credit unions incorporated in the UK²⁵.

The credit union's registered permission is accepting deposits²⁶. Its website is www.lurgancu.com²⁶.

A firm's status and permissions can be checked on the FCA Register, the official source. The consumer protection guide explains how regulation and compensation work in the UK.

Contacting Lurgan Credit Union

Lurgan Credit Union can be contacted in person, by letter, by telephone or by email⁶. Its website is www.lurgancu.com²⁶. The website sets out its loans, savings and services, and its complaints procedure.

To find other credit unions in the UK, the Find Your Credit Union website at www.findyourcreditunion.co.uk can help you locate one near you¹. You can also search by visiting the Association of British Credit Unions' website or calling 0800 015 3060²⁷.

In Northern Ireland, Consumerline can refer a complaint to the Trading Standards Service for investigation or to the Financial Conduct Authority, which authorises lenders²⁸.