Riverside Credit Union

Riverside Credit Union is a not-for-profit, member-owned financial cooperative that exists for the benefit of a group of members, and it has been running since 1989¹. It is a Liverpool credit union: anyone who lives or works in a Liverpool postcode can join, and you have to be a member before you can borrow².

Its main products are savings and loans. The loan range covers Saver loans, Starter loans (also called Instant loans) and secured loans, and the Instant Loan is the one most people ask about: you can apply for up to £2,000 if you are a member and you receive Child Benefit and pay it into your credit union account¹. Loans are subject to approval and to funds being available, so not every application is granted³.

Money with Riverside Credit Union is covered by the Financial Services Compensation Scheme, which protects eligible deposits up to £120,000 per member if the credit union fails⁴. Members can also take complaints to the Financial Ombudsman Service, and the credit union says all complaints should be resolved within 8 weeks, with a copy of the resolution in writing for your records⁵.

What Riverside Credit Union offers members

Riverside Credit Union is a not-for-profit, member-owned financial cooperative, established in 1989, that exists for the benefit of its members rather than outside shareholders¹. Credit unions in the UK all offer savings and loans, and many add other products such as junior savings accounts, Christmas savings accounts, prepaid debit cards, insurance products and cash ISAs, and in some cases mortgages². Riverside Credit Union's own range centres on savings and loans, with the loan side split into named products covered below.

The wider credit union model is worth knowing because it shapes what you get. A credit union provides loans, savings, bank accounts and other services to its members, and the interest rates on its loans are capped⁷. For free, members can usually pay in or take out cash at the credit union, have money paid in such as wages, benefits and pensions, use online, mobile or telephone banking, and get budgeting advice and support⁷. Some credit unions also offer electrical and household goods that you pay for in weekly instalments and that are much cheaper than the ones you may find on the high street⁸.

Riverside Credit Union's own accounts and services are set out on its site, and the general shape of what a credit union offers is covered in our guide to credit unions. If you are weighing up where to keep your savings, our savings and ISAs guides explain how those accounts work elsewhere.

Who can join: the Liverpool postcode common bond

Each credit union serves a defined group, called a common bond. Riverside Credit Union's common bond is anyone who resides or is employed in a Liverpool postcode². That is wider than it sounds: you do not have to live in Liverpool if your workplace is there, and you do not have to work there if you live there. Other credit unions set their common bond differently, for example by county, so the rule is specific to each one⁹.

You need to be a member of Riverside Credit Union to apply for a loan¹. Only members aged 18 to 79 may apply³. If you are outside that age range, or outside the common bond, you cannot borrow from this credit union, though you may be able to join one that covers your area.

To find a credit union that covers where you live or work, the Association of British Credit Unions runs a search, and you can also call 0800 015 3060¹⁰. The finder website at findyourcreditunion.co.uk does the same job¹¹.

Loan types: saver, starter and secured loans

Riverside Credit Union's loans fall into three named groups, and the rules differ between them.

Saver loans are for members who have built up a savings record. They are only issued to members who have saved for a minimum of 10 weeks, or who have made three consecutive monthly standing order payments³. Lump sum deposits do not count as a regular payment or pledge³. The maximum repayment period for a first Saver loan is 12 months³.

Starter loans, also called Instant loans, are only issued on receipt of a Child Benefit payment³. The maximum repayment period for a first Starter loan is 36 weeks³.

Secured loans are available for members over 79³. Secured lending means the loan is tied to an asset, and the most common form of secured lending is a mortgage¹². Secured debt carries more risk than unsecured debt because the lender can take the asset if you do not keep up payments¹².

Across all of them, the minimum repayment term is 10 weeks³. For the wider picture on how these products compare with borrowing elsewhere, see our guide to loans.

Instant loans are linked to Child Benefit

The Instant Loan is Riverside Credit Union's flagship product and it works differently from the others. To qualify, you need to become a member of Riverside Credit Union and transfer your Child Benefit payments into your credit union account¹. You can then apply for an Instant Loan of up to £2,000¹.

Because the loan is tied to Child Benefit, changes to your benefit matter. You must report certain changes, including if the person you live with moves in with their partner¹³. If your Child Benefit stops or changes, that affects the payment stream the loan is built around, so it is worth telling the credit union early if your circumstances change.

If you are waiting on a Universal Credit payment rather than Child Benefit, Universal Credit will give you a decision straight away when you apply for an advance¹⁴. That is a separate route from the credit union's Instant Loan and is handled by the Department for Work and Pensions.

How loans are calculated and repaid alongside saving

Riverside Credit Union calculates all its loans on the repayment plus interest method². Each loan is paid into your nominated bank account³. There are no penalties for early settlement: if you decide to repay all the loan capital early, that is your choice and there are no penalties².

Saving alongside borrowing is a feature of credit union lending rather than an optional extra. You must save with Riverside Credit Union the required amount set out in your loan agreement³. Across credit unions generally, you usually need a history of saving before you can borrow, and some will ask you to build savings first¹⁵. You need to be a member to get a loan, and some credit unions ask you to build up savings first¹⁷. If you join a credit union and start saving, you will also be able to apply to borrow once you have proved you are a reliable saver¹⁸.

How much you can borrow against your savings varies. Credit unions usually, but not always, give loans if you have saved a certain amount with them first¹⁹. You can usually borrow at least two or three times the amount you have in savings, depending on the loan policy of your credit union²⁰. Repayments on credit union loans are typically calculated on your reducing balance, so you pay less interest with each repayment²².

Free loan life insurance and its medical exclusions

Loan Life Insurance is provided free for all members aged 18 to 79³. This is standard across the sector: most credit unions offer free life or loan-protection insurance, and when you borrow you normally get free life insurance to cover the value of the loan, so the loan is repaid if you die before paying it back in full²³.

The cover is not unconditional. Riverside Credit Union states that all members must be aware of the pre-existing medical condition clause that applies to any loan³. That clause is the part to read carefully, because a pre-existing condition can affect whether the insurance pays out.

The insurance is arranged as part of the loan rather than sold to you as a separate product, so there is no separate premium to compare. If you want to understand how protection products work more generally, including the difference between cover that clears a debt and cover that pays an income, our guide to protection insurance sets it out.

How to apply for a loan with Riverside

The process starts with membership. You need to be a member of Riverside Credit Union to apply for a loan¹, and you must be aged 18 to 79³.

A loan application form must be fully completed for all loans, and a loan agreement must be completed and signed before funds are paid out for any loan³. Your first loan with Riverside Credit Union is a trial loan and must be paid off in full and to the terms of the agreement before you can take a further loan².

If you want to top up an existing loan, you must have paid half of your original loan, or six months must have passed since your last application². Top up loans are unlikely to be granted in November and December, subject to available funds and loan officer discretion². All loans are subject to approval and to the availability of funds within Riverside Credit Union³.

What happens if you miss repayments

Riverside Credit Union takes a pragmatic line on arrears. Members who do fall behind are able to come to an arrangement with the credit union, and are able to have another loan in the future without arrears adversely affecting their credit rating². Failure to repay and respond, however, may lead to court action².

The formal rule is firmer. Should you miss more than two consecutive loan repayments without consultation or permission from the credit union, it reserves the right to periodically deduct any outstanding interest from your shares without prior notification³. In other words, your savings can be used against the debt. That reflects a general feature of credit union lending: if you miss payments on a loan, the credit union may be able to use your savings to repay the loan²⁰.

If you default on repayments, information about your loan may be passed to the Department for Work and Pensions for its consideration of deductions from benefits³. Persistent non-payment can lead to a county court judgment against you, bailiffs attending your property, an attachment of earnings, a charge on your property, deductions at source from state benefits, or other penalties the law allows³.

Missing payments generally has consequences beyond the credit union. The provider and credit reference agencies count a stopped payment as a missed payment, recorded on your credit file, and several missed payments put your account at risk of defaulting²⁵. If you catch up quickly, missed payments may not be recorded on your credit file, but interest and charges including late payment charges will be added²⁶. If you are struggling, free help is available from StepChange and National Debtline, and our guide to debt explains the options.

Complaints and appeals: how to raise a problem

If a loan application is turned down and you disagree, the appeal goes to the top of the organisation. Riverside Credit Union's loan terms state that if a member disagrees with the decision they must appeal in writing to the Board of Directors, and the appeal will be discussed with a loan officer present³.

For a service complaint, Riverside Credit Union will provide a copy of its internal complaints procedure on request⁵. You can raise a complaint by email at Info@RiversideCreditUnion.co.uk, or in writing to 2-4 St Mary's Road, Garston L19 2RY⁵. Within 3 working days from the date your complaint was received, if it is not resolved you will receive a written letter confirming the complaint is being looked into⁵. All complaints should be resolved within 8 weeks, and you will receive a copy of the resolution in writing⁵.

If you are unhappy with the resolution, or the credit union has not provided one within 8 weeks from the date it received your complaint, you have 6 months to escalate the complaint to the Financial Ombudsman Service⁵. Riverside Credit Union belongs to the Financial Ombudsman Service together with banks and building societies⁴. Credit union complaints can be taken to the free Financial Ombudsman Service if you are unhappy with the final response or the timeframe has passed⁷.

The ombudsman service is free and covers complaints about regulated debt where you are not happy with the final response²⁷. Consumers who feel they have been given unaffordable credit, or that the lender acted irresponsibly, may be able to complain to the Financial Ombudsman Service²⁸. If a debt collector or creditor has broken the terms of the Standards of Lending Practice, that can also go to the ombudsman²⁹.

How your savings are protected

Riverside Credit Union is covered by the Financial Services Compensation Scheme, which protects eligible deposits up to £120,000 per member in the unlikely event of the credit union failing⁴. Credit unions, like other UK financial organisations, are members of the scheme, which provides a safety net should a bank, building society or credit union collapse². Loans and savings are protected by the Financial Services Compensation Scheme³⁰.

The limit applies to each member's total eligible deposits with the credit union, so balances held across more than one account with the same credit union count together towards it. Savings held with a different credit union are covered separately, because each has its own protection. If you hold more than the protected amount, the credit union can tell you how the scheme would treat the balance.