Reading Njangi of Cameroonians (Rencam) Credit Union

Reading Njangi of Cameroonians (Rencam) Credit Union is a credit union based in Reading, with its website at www.rencam.co.uk¹. It appears on the Bank of England's list of credit unions incorporated in the UK². Its register entry records that it is permitted to accept deposits, so members can save with it as well as borrow¹.

Like other credit unions, it is a not-for-profit community lender: members save together and the money is lent to other members who need to borrow³. Its loan page says rates are fixed regardless of your personal circumstances, unlike lenders that vary the rate depending on status, and that loans are decided by people rather than computers, so individual circumstances are considered⁴.

This page covers what Rencam offers, who can join, how to apply, how to complain, and how savings held with it are protected.

What Rencam Credit Union is: a Reading credit union rooted in the Cameroonian njangi tradition

A credit union is a group of people connected by a common bond, based on the area they live in, the occupation they work in, or the employer they work for, who save together and lend to each other at a fair and reasonable rate of interest⁶. Membership is built on that common bond rather than on how much money you have⁷. Credit unions provide loans, savings, bank accounts and other services to their members⁸.

Rencam's name points to the njangi, the rotating savings tradition in which a group who know each other pay in regularly and take turns to receive the pooled money. A credit union works on a similar principle of members saving together, but it is a formal body rather than an informal arrangement: membership is based on a common bond, such as the area members live or work in, the employer they work for, the trade union they belong to, or the church or other association they belong to⁴. The legal definition of a credit union in the relevant regulations refers back to the Credit Unions Act 1979 or, in Northern Ireland, the Credit Unions (Northern Ireland) Order 1985⁹.

That matters to a saver because it changes what happens if something goes wrong. An informal njangi rests on trust between its members; a credit union is supervised, must consider affordability when it assesses loan applications, and its members' savings are protected by the Financial Services Compensation Scheme⁵.

Rencam's own loan page describes an approach that looks at the person rather than only the score: loans are decided by people not computers, individual circumstances are considered, and the credit union says it often lends to people who may have difficulty borrowing elsewhere, including people on benefits or tenants⁴. That sits within a wider responsible finance approach of looking beyond a credit score or standard lending criteria to understand the person behind an application¹⁰.

Saving with Rencam

All credit unions offer savings accounts and loans⁷. Rencam's register permission to accept deposits is what allows it to take members' savings¹. Members' savings are then used to fund loans to other credit-worthy members of the credit union, which is how the model funds itself⁶.

Credit unions are saving schemes run by their members which also allow you to borrow two or three times as much as you have saved at a low interest rate¹¹. Some credit unions may offer small, interest-free loans to members¹². Credit unions may also choose to pay a loan interest rebate, which is a refund of loan interest paid to all members who borrowed during the preceding financial year⁶.

On the savings side, credit union accounts commonly include features at no cost: paying in or taking out cash at the credit union, having money paid in such as wages, benefits and pensions, online, mobile or telephone banking, and budgeting advice and support⁸. Not every credit union offers every one of those, so it is worth checking what Rencam itself provides before you rely on a particular feature.

Rencam does not publish savings rates on the pages covered here, and this page does not carry rates for any provider. If you want to know what a savings account pays, ask the credit union directly or check its own website for today's figures. For how savings accounts work more generally, including how interest is calculated and paid, see savings accounts, and for tax-free saving see ISAs.

Who can join a credit union like Rencam

Anyone can become a member of a credit union, but you must share a common bond with other members⁷. All credit unions in the UK may only accept members who have a common bond¹³. Common bonds include living or working in the same area, working for the same employer, belonging to the same trade union, or belonging to the same church or other association¹⁴. Credit unions work by all members sharing a common bond, such as living, working, studying or volunteering in a certain area, working in the same industry or for certain employers, or belonging to the same trade union⁸.

Household and family routes widen this. Anyone in the house of a person with a common bond with a credit union can usually join¹⁴. As long as one member of a family meets the common bond requirements and has joined the credit union, the other family members living at the same address can usually join too³.

Eligibility rules do change. One credit union has widened its eligibility to include students, local workers and relatives of existing members, reflecting the way people live and work¹². If you are not sure whether you qualify for Rencam, the credit union itself is the only body that can confirm it.

If Rencam's common bond does not cover you, other credit unions serve different groups. The Association of British Credit Unions is the trade body for credit unions, and its finder service can help you locate one that fits your circumstances¹⁵. For the wider picture, including how credit unions differ from banks, see credit unions.

How to join and manage your account

Rencam's loan page sets out the route for borrowing: apply online by completing the loan application form, and the credit union will contact you to arrange the rest⁴. That is the process described for loans; for joining as a saver, the credit union's own site is the place to check the current steps.

Credit unions generally ask for a membership form, and the pattern across the sector is that you apply to join first and then use the account. One credit union, for example, invites people to apply for a membership form by email or by downloading a form¹⁶. Once you are a member, online access typically lets registered members check their balances, apply for a loan and make payments into their account¹⁷.

A few practical points apply to any credit union account:

• You must be a member of a credit union to get a loan from it¹⁴.
• Some credit unions will lend to you as soon as you become a member, while others will only lend after you have saved for a set period³.
• Affordability is checked against the money you have left after paying your bills³.
• Credit unions always consider affordability when assessing loan applications⁵.

If you are opening an account and want your wages, benefits or pension paid in, it helps to have the account details to hand before you start. For the general steps in opening and running an account, see current accounts and everyday money tasks.

Borrowing from Rencam

Rencam's loan page describes fixed rates regardless of your personal circumstances, unlike other lenders who vary the rate depending on status, and decisions made by people rather than computers, with individual circumstances considered⁴. The credit union says it often lends to people who may have difficulty borrowing elsewhere, including people on benefits or tenants⁴.

Across the sector, all 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 improvements³. Credit unions offer loan products suited to individual needs and at rates members can afford¹⁸. Credit unions are not-for-profit community lenders providing affordable loans and savings⁵.

One important limit to understand: the Consumer Credit sourcebook does not apply to most of the loans credit unions provide, and the standards applied, for example the level of checks a lender may have needed to do before lending, will typically be lower than those imposed on lenders and loans covered by that sourcebook¹⁶. That does not remove your rights, but it does mean the affordability rules you may have read about for other lenders do not map exactly onto a credit union loan. Any lender regulated by the Consumer Credit Act must complete affordability checks¹⁹.

If you are weighing up borrowing, credit unions appear among the alternatives to same-day loans, alongside budgeting loans, bank overdrafts and salary advances²⁰. For how borrowing works more generally, including what lenders look at and what a loan costs, see loans and credit scores and credit reports.

Checking Rencam's registration before you pay in

Before paying money to any financial firm, check it on the Financial Services Register. Rencam's entry shows the website www.rencam.co.uk, and accepting deposits among its permissions¹. The credit union also appears on the Bank of England's list of credit unions incorporated in the UK, under the same name².

Two checks are worth doing:

1. Search the register using the firm reference number rather than the name alone, so a similarly named firm cannot be mistaken for it¹.
2. Compare the website address on the register with the one you are using, since the register lists www.rencam.co.uk¹.

If you are refused credit by a lender, you have a right to ask whether the finance company used a credit reference agency, and it must give you the agency's name and address²¹. If a complaint about a credit reference agency is not resolved through the agency's own complaints procedure, you then have the right to complain to the Financial Ombudsman Service²¹.

Complaints: going to Rencam first, then the Financial Ombudsman

If something goes wrong, the first step is always the firm. It only looks at complaints the business has had an opportunity to deal with first, and consumers can go to the ombudsman if they are unhappy with the decision or the business does not respond within the time limits²².

The usual sequence is: complain to the company, and if you do not get a final response within eight weeks, or you are unhappy with the response, complain to the ombudsman using its complaint form¹⁸. The ombudsman's own guidance puts it the same way: talk to your lender or broker, give them the chance to put things right, and contact the ombudsman after their final response if you are still unhappy²³.

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 Service¹⁶. Under the Consumer Credit Act 2006 there are rights to complain to the Financial Ombudsman Service about how a lender or debt collection agency has behaved²⁴.

The ombudsman can look at a wide range of money complaints, including complaints about financial difficulties affecting your ability to repay a mortgage, mortgage arrears and charges, and not being able to change or move your mortgage or take a payment holiday²⁵. It also handles complaints about the service received from claims companies, for example the results of a claim or the fees charged²⁶, and complaints about insurance, such as storm damage to a home²⁷.

If you are unhappy with how a scam report has been handled, you can take the matter further by referring it to the Financial Ombudsman Service²⁸. Complaints about credit-repair companies can also go to the ombudsman²⁹.

Free, impartial help is available if you are struggling with debt or need advice on a complaint. StepChange and National Debtline both provide free debt advice, and the Financial Ombudsman Service is free to consumers. For the wider picture on rights and remedies, see debt and consumer protection.

FSCS protection for savings held with Rencam

Savings held with a credit union are protected by the Financial Services Compensation Scheme, which is set up to protect you if your bank, building society or credit union runs into financial difficulty¹¹. Credit unions' loans and savings are protected by the Financial Services Compensation Scheme⁵. The scheme also protects mortgage advice³¹.

That protection is the main reason a credit union account is different from an informal savings arrangement. If the credit union fails, the scheme exists to step in, rather than the saver relying on the group's own funds.

Two limits are worth knowing. First, the protection applies to the firm, so money held with the same credit union counts together towards the limit rather than being protected separately for each account. Second, the scheme covers deposits and certain advice, not every financial product; the Financial Services Compensation Scheme's own pages set out what is and is not covered³¹.

For how protection works across banks, building societies and credit unions, including the limits and how joint accounts are treated, see consumer protection and credit unions.

Where to get help

If you need free, independent help with money, several organisations provide it. The Association of British Credit Unions can help you find a credit union, and its finder service is open to anyone¹⁵. StepChange provides free debt advice and explains how the ombudsman works³². National Debtline publishes free guides on saving money and on dealing with creditors¹¹.

For a complaint, the Financial Ombudsman Service is free and does not require a lawyer²³. For debt problems, free advice services can talk through your options before you borrow more. For the wider picture on borrowing alternatives and what to do when money is tight, see debt and getting started.