M for Money Credit Union

M for Money Credit Union is a not for profit community lender in Wales that offers savings and loans to its members. Its main product is a loan repaid over up to 60 months, with no arrangement fee, no credit checking fee and no charge for paying the loan off early or making additional payments¹. New Member Starter Loans run for 12 months¹.

Members' savings are used to fund loans to other credit-worthy members, which is how credit unions work generally². That link between what you have saved and what you can borrow is the defining feature of credit union lending, and it shapes both the products on offer and who they tend to suit.

M for Money Credit Union Limited is authorised by the Financial Conduct Authority, firm reference number 216633, and appears on the Bank of England's Prudential Regulation Authority list of credit unions incorporated in the UK³. Savings with it are protected by the Financial Services Compensation Scheme up to £120,000 in total across all accounts you hold with the credit union⁵.

What M for Money Credit Union offers its members

Credit unions provide loans, savings, bank accounts and other services to their members⁷. All credit unions offer savings and loans, and members' savings are used to fund loans to other credit-worthy members². M for Money's own product range is built around lending, with savings as the route in and the source of the funds it lends out¹.

The wider credit union sector gives a sense of what a member might expect beyond the core savings and loan pairing. Many credit unions offer junior savings accounts, Christmas savings accounts, prepaid debit cards, insurance products, cash ISAs and in some cases even mortgages⁸. Larger credit unions offer extra services such as Christmas savings accounts, cash-based Child Trust Funds, ISAs, budgeting accounts, current accounts and debt management, though features vary⁹. Some credit unions also offer electrical and household goods that members can pay for in weekly instalments, often much cheaper than high street equivalents¹⁰.

What credit unions do not do is chase profit. They are not for profit community lenders providing affordable loans and savings, with the aim of helping members in need of financial support⁹. That structure shapes what is on offer: the products are designed around members' needs rather than around selling the widest possible range.

For a member of M for Money, the practical starting point is a savings account, because credit union borrowing is normally linked to what you have saved. If you are comparing credit unions with other ways to save, the credit unions guide sets out how they differ from banks and building societies, and the savings guide covers the wider market.

Loans linked to your savings: how much you can borrow

Credit union lending works differently from a high street bank loan. If you are a member of a credit union, you can usually borrow at least two or three times the amount you have in savings, depending upon the loan policy of your credit union¹². That link between savings and borrowing is the defining feature of credit union lending, and it is why building up a savings record with the credit union matters before you apply.

M for Money states that all its loans are subject to its loan policy and the loan amount is also subject to your ability to repay your loan¹. So the multiple of your savings is a starting point, not a guarantee: the credit union will also look at whether the repayments are affordable for you.

Credit unions can lend small amounts of money for all purposes, and some can lend larger amounts over longer periods, for example to buy a car or for home improvements⁷. That range matters if you are weighing up a credit union loan against a personal loan from a bank, where you can usually borrow between £1,000 and £25,000, although loans for as much as £50,000 are available from some lenders¹⁴. Credit union loans tend to suit smaller sums and members who value the savings link; the loans guide explains how the different types of borrowing compare.

Loan charges: no arrangement or early repayment fees

M for Money states that it makes no charge for arranging the loan or for credit checking, and no charge for the early repayment of loans or for making additional payments to your loans¹. Those are the two charges borrowers most often run into elsewhere: an arrangement fee added at the start, and an early settlement charge if you clear the balance ahead of schedule.

That is not a universal rule across the sector. Under the Green Deal scheme, for example, you can pay the loan off early but there may be extra costs¹⁵. So the absence of an early repayment charge is a feature of M for Money's own terms rather than something you can assume of every credit union or lender.

Interest is the main cost of any loan, and it is charged on the amount you borrow over the term. M for Money does not publish its loan rates in the facts behind this page, so the rate that applies to you depends on the loan you take and the credit union's current terms. Its own site is the place to check today's figures before you apply.

The term also drives the total cost. A longer repayment period lowers the monthly payment but means interest is charged for longer, so the total repaid is higher. M for Money allows up to 60 months on its loans, and 12 months on New Member Starter Loans¹. Working out what a loan actually costs over its life, rather than just the monthly figure, is the same exercise whatever the lender, and the loans guide walks through it.

Who can join and borrow, including junior savers

Credit unions serve members who share a common bond, which is usually based on where you live or work. M for Money is a Welsh credit union, and the guide to money in Scotland, Wales and Northern Ireland explains how credit union rules and the wider financial landscape differ across the UK nations. The credit union's own site sets out its current common bond and who is eligible to join.

To borrow, you must be a member and meet the age requirement. Just Credit Union, another credit union, states that you must be aged 18 years or more and a member to borrow from the credit union¹⁶. That is the standard position for credit union borrowing.

Saving is different. Junior savings accounts are widely offered across the sector, alongside Christmas savings accounts, prepaid debit cards, insurance products and cash ISAs⁸. So a child can typically hold a savings account with a credit union long before they could borrow from one, and a parent or grandparent can open one on their behalf.

Membership usually starts with a small deposit, and the savings stay yours. Because members' savings fund other members' loans, your balance is both your own money and part of the pool the credit union lends from². If you are deciding where to save more generally, the savings guide and the ISA guide cover the alternatives.

How to apply for an M for Money loan

M for Money sets out a straightforward application route: complete the respective M For Money Loan Application form and hit the 'submit' button, or apply when logged into your M for Money online account¹. Applying through the online account means the credit union already has your membership and savings details to hand.

Before you apply, it helps to have the basics ready:

• proof of identity and address
• details of your income and outgoings
• a clear idea of how much you need and over how long you want to repay it

The credit union will assess affordability as well as the savings multiple, because the loan amount is subject to your ability to repay¹.

If you are applying for a New Member Starter Loan, the term is fixed at 12 months, so the monthly repayment is set by the amount you borrow¹. For standard loans, you can choose a term of up to 60 months, and the term you pick determines both the monthly payment and the total interest you pay¹.

It is worth checking your credit report before applying, since the credit union will look at your borrowing history as part of its assessment. The credit scores guide explains what lenders see and how to check your own file. If you are already struggling with existing debts, the debt guide sets out the free advice services and the options available before you take on more borrowing.

Making a complaint to M for Money

If something goes wrong, the first step is a formal complaint to the credit union itself. Consumers may choose to complain to the firm and to seek redress from it, and refer the complaint to the Financial Ombudsman Service if the firm does not satisfy the complaint and it is appropriate¹⁷. Credit unions have eight weeks to investigate and give you their final response⁷.

Put the complaint in writing and keep a copy. Set out what happened, when, what you want the credit union to do, and include any documents that support your case. If the credit union does not resolve it, the paperwork you have kept becomes the basis of an ombudsman complaint.

The eight-week clock matters. If you have not had a final response within eight weeks, you can take the complaint to the ombudsman without waiting any longer¹⁸. If you do get a response and you are unhappy with it, you can also escalate¹⁸.

Complaints about credit and lending have a specific route. Consumers who feel that they have either been given unaffordable credit, or that the lender acted irresponsibly in providing the product, may be able to complain to the Financial Ombudsman Service¹⁹. Under the Consumer Credit Act 2006 there are rights to complain to the Financial Ombudsman Service about how your lender treated you²⁰.

Taking a complaint to the Financial Ombudsman

The Financial Ombudsman Service is free to consumers. You make a formal complaint to the company first, and if they do not send you a final response letter within eight weeks, or you are unhappy with their response, you can bring the complaint to the ombudsman using its complaint form¹⁸. A case handler is then assigned and may ask for more information²³.

The ombudsman aims to give answers to complaints within 90 days, but complex cases can take longer²⁴. It can consider complaints from microenterprises and small and medium-sized businesses as well as consumers, so a small business member is not shut out²⁵.

The service covers a wide range of financial complaints, including savings and investments, debt collecting, and financial difficulties with mortgages¹⁸. Where a complaint concerns a payment scam, banks and payment providers should investigate and respond within 15 days²⁷. The ombudsman also publishes guidance for businesses on staying safe from scams, which reflects how often fraud sits behind the complaints it sees²⁸.

If your complaint is about a claims management company rather than the credit union, there is a separate route: complain to the Financial Ombudsman Service 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 you¹⁸. The government also sets out how to complain about a claims company²⁹.

Where a firm has refused you a basic bank account, the rules require it to tell you in writing and free of charge why, how to complain to it, and that you can complain to the Financial Ombudsman Service³⁰. That is a useful reminder that the right to escalate is built into the rules, not a favour.

FSCS protection for your savings

Savings with M for Money are protected by the Financial Services Compensation Scheme, which protects you if your bank, building society or credit union runs into financial difficulty³¹. The scheme protects up to £120,000 in total across all accounts you hold with the credit union⁵. Loans and savings at credit unions are protected by the scheme⁹.

The limit is per person, per firm, and it applies across all the accounts you hold with that credit union rather than to each account separately. For a joint account, the scheme assumes the money is split equally between the account holders unless evidence shows otherwise, which gives coverage of £240,000 in total for a joint account with a partner³².

If the credit union failed, you would not need to claim. The scheme returns your money automatically up to its compensation limit³³. In most cases it will return your money within seven working days from the date your credit union failed⁵. Deposit failures are paid within seven days of making a claim, and most commonly in two or three days⁶. Payments are typically made within seven days of the firm failing, although complex claims may take longer³⁴. Standard cases are paid within seven working days, while more complex cases including temporary high balance claims take longer³⁵.

Money held in other accounts with the same credit union counts towards the same limit, so spreading savings across accounts with one credit union does not increase your protection³⁶.

You can check whether your money is protected using the Financial Services Compensation Scheme's checker³⁷. Mutual insurers do not appear in the checker, except credit unions that can take deposits, so a credit union should be findable there³⁷. If a firm is not listed, the scheme explains what to do next³⁸.

Protection has boundaries. The scheme protects mortgage advice, for example, but credit insurance claims are not eligible for protection³⁹. The scheme also covers some debt management claims where the firm failed after 1 April 2018⁴¹. For a straightforward savings balance with a credit union, the deposit protection rules are the ones that apply, and the consumer protection guide explains how the scheme fits with the ombudsman and the other protections around financial products.