We know that terms and conditions aren’t the most exciting thing to sit down with a cup of tea and read. However, they are an important part of being an account holder with PCCU.
PCCU’s regulators, the Financial Conduct Authority (FCA), have introduced updated rules designed to further protect customers of the financial services industry in the UK. This has prompted PCCU to update our Terms and Conditions. The FCA aims to ensure honest and fair markets by protecting consumers, protecting the financial markets, and promoting competition. The FCA have outlined why they have introduced the New Consumer Duty
Our new Duty sets higher and clearer standards of consumer protection across financial services, and requires firms to put their customers’ needs first.
PCCU terms and conditions is broken into three main sections; General Savings, Loan and Continuous Payment Authority terms and conditions.
- The General terms and conditions cover savings accounts and being a member of PCCU. They give information on payments of dividends, statements, Engage accounts, Life Cover, how we use your information, making complaints and the Financial Services Compensation Scheme.
- The Loan terms and conditions are for any account holder who has a loan with PCCU. They cover things such as your cancellation rights, making payments and loan duration.
- Continuous Payment Authority terms and conditions where PCCU offers its members who are experiencing difficulties and are in arrears the opportunity to set up a Continuous Payment Authority, whereby members can safely and securely provide their debit card details and PCCU will take the payment following the parameters laid out by the member.
Due to the New Consumer Duty introduction we have had to make some updates to our terms and conditions. To make it easier for you though we have highlighted the sections and the text changes in blue.
General Terms and Conditions updates
These terms and conditions are available online on www.pccu.co.uk/terms-and-conditions/ or can be requested at any time. You can request these by calling us on 01282 691333, emailing us at firstname.lastname@example.org or requesting them in person. If you require alternative format of the document, please contact email@example.com.
1.2.2 There is a one-time £1 account fee for all adult members.
1.2.3 Your membership will automatically start when you have deposited £2 (£1 account fee and £1 to keep your account open).
1.2.5 If you do not make any transactions on the Member Account for a period of 12 months your account may become dormant.
1.3 Payment of Dividends/Interest
1.3.1 If a surplus has been achieved, the Board of Directors will recommend the rates of dividend payment for agreement by the Members at the Annual General Meeting (AGM) held within 6 months of the accounting year end.
1.3.2 The dividend is calculated based on the daily balance of shares held by members in the relevant financial year (which runs from 1 October to 30 September).
1.3.3 Membership must be held at the time of the AGM in to be eligible for dividend. That means any members withdrawing from membership before it is paid will forfeit any dividend that may be payable.
1.3.4 Any dividend shall be declared at the AGM, on all full shares held during the preceding accounting year. The dividend will be paid for every full month of membership of the account year. New members joining the credit union during the accounting year will be entitled to a proportional part of the dividend on any shares held for less than the full year. For new Members who join after the accounting year end but before that year’s AGM, the dividend will be paid after the following year’s AGM.
1.3.6 Dividends will be paid to active members. Members with status dormant, deceased, left or bad debt will not accrue dividend or loan interest rebate.
1.3.7 Dividend and loan interest rebate will be withdrawable in the same financial year it is paid.
1.5 Rules around different types of savings accounts:
1.5.1 Regular savings – your regular savings are locked against your active loan balance. Once your loan balance falls lower than your savings you can take out the difference, otherwise, once your loan is fully repaid you will have full access to withdraw or continue these savings. Please note, this rules only apply if member has an active loan, otherwise withdrawals are permitted without any limitations.
1.5.2 Easy access – These can be accessed at any point, regardless of your loan and savings balance.
1.5.3 Christmas Club – These can only be accessed between the 1st of November and 31st of December. Please note, if funds are withdrawn outside of this period account will be closed for remainder of that calendar year.
1.5.4 Bill Paying – These can be accessed at any point, regardless of your loan and savings balance.
1.5.5 Junior Savings – Savings account for anyone under 18 years old, without borrowing facility. The account holder is not in control until they reach 18 years old and need consent to withdraw. Anyone can deposit into the account, but restrictions are placed on who can access or withdraw from account. At the age of 18, we will write to advise that the junior account will be converted to that of a full member and that the junior will have full control of their account, subject to the provision of suitable identification. Alternatively, the funds can be transferred to the account of the Guardian and the Junior account will be made dormant.
1.6 Corporate Accounts
1.6.1 Membership is available to unincorporated associations and corporate bodies such as companies, partnerships, and co-operatives.
1.6.2 Identification of all signatories to the account is required. Individuals representing the organisations will be required to produce identification documents giving proof of name, date of birth and address in accordance with the credit union’s normal identification requirements. In addition, we will require details of all shareholders, directors or beneficial owners holding more than 25% of shares in the organisation who are not signatories. A list of additional documents proving the organisation is bone fide is detailed on the application form.
1.6.3 Loans will not be offered to Corporate and Unincorporated Accounts.
1.7.1 You can request a free statement of your account at any time, which will show your saving/ loan balance, repayments/ deposits and interest paid.
1.8 Transactions and Payments
1.8.1 Transactions can be made online, by email, telephone or in person at our office.
1.8.3 Funds that are paid into the Credit Union by Standing Order or benefit will only be available for you to withdraw on the same day as receipt following processing.
1.8.6 Any increase or decrease to Payroll payment need to be made via employer, please contact us for any other enquiries about payroll.
1.8.7 Withdrawals for payments that have been made by card within 30 days will be paid to the same card.
1.9 Engage account terms and conditions
1.9.1 Engage account terms and conditions can be found on www.engageaccount.com/terms-conditions/.
1.12 Proof of Identity
1.12.1 We are required by law to verify the identity and address of all new members. We will usually do this via an electronic identification search as part of your application online. PCCU reserve the right to request additional documents at any time.
1.12.2 PCCU can request an ID&V check at any time of membership.
1.12.3 PCCU will carry out screening of membership which will be completed by a 3rd party checked scanning company semiannually, this will search for matches on the Sanctions list and any Politically Exposed Persons.
1.15 Account Closure, Freeze or Membership Refusal
1.15.1 Pennine Community Credit Union can close or freeze your account for reasons such as:
- Acting abusively, offensively or violently towards our staff or volunteers,
- Misuse your account,
- Your account was dormant over 12 months,
- Act dishonestly with us,
- Act in any way to give rise to reasonable suspicion of fraud or other criminal activities.
1.17 Life Cover Terms and Conditions
Life Protection is automatically provided with membership at no extra cost, to members from 0 up to the age of 80.
It may double the balance of your savings and clear any outstanding loan balance you may have with us, subject to the following criteria:
– Savings are covered up to a maximum of £5,000 across all accounts with 100% cover for funds deposited up to the age of 64 years and 364 days and 25% cover for funds deposited between the ages of 65 to 79 years and 364 days. Loans are covered up to a maximum borrowing of £7,000 across all loans held per Member up to the age of 80.
– There is a pre-existing medical condition clause that is included as standard. The terms are as follows:
- Each new savings deposit or loan agreement that you make is governed by a six-month pre-existing medical condition clause.
- Benefit will not be paid on your outstanding savings or loan balance if death results from a pre-existing illness or injury for which medical advice, consultation or treatment was received within six months prior to making the savings deposit or loan.
- The pre-existing medical condition clause lasts for a period of six months from the start date of each savings deposit or loan. If you were to die six months or more after the date of the savings deposit or loan, this would not apply.
- Please note each case is subject to terms and conditions of CMutual Insurance, which can be found on www.cmutual.co.uk/terms-conditions.
- War: Life cover benefits may not be payable if a Member is injured, becomes ill or dies resulting from an insurrection of any war, declared or undeclared, or service in the armed forces of any country.
- Suicide: Benefits are not payable with respect to any savings deposit or loan paid into a Member’s account if a Member commits suicide, while sane or insane, within six months from the date of the savings deposit.
- Loans with no repayments within 3 months prior to death.
Loan Terms and Conditions updates
2.2 Making payments
The date of your first payment is shown on your loan agreement and then your regular repayments will be due in line with the repayment frequency you selected. This is also documented on your agreement. Your first and regular repayments will be of the same value, your final repayment will be slightly different. If repayments vary from the loan agreement, interest charged will differ.
If you need to change your payment date, you must inform us of this.
If you fail to make repayments, interest will still be charged and payable on the next repayment received.
Family Loan –If you have taken the Family Loan product, you will be asked to sign a letter to be sent to the DWP arranging for your Child benefit payment to be switched to your PCCU account. This may take up to 6 weeks to be completed and these delayed payments will be added to the end of your loan term, extending this where necessary.
Please note, daily interest charges will be occurring. You may make manual payments via card or bank transfer in order to avoid this.
Loan repayments must be paid via child benefit on this product unless an alternative method of payment is agreed with the Member Solutions Team.
Remainder of child benefit, which is requested in member’s bank account will be received by the end of working day we receive the money.
If you intentionally stop your Child benefit repayment coming into your PCCU account without first discussing this with us, you are in breach of this loan agreement, and we may proceed with Court action to recover the outstanding loan balance.
2.8 General terms
2.8.1 You must be a member of PCCU to be eligible for a loan.
2.8.2 You can request a free statement of your account at any time, this will show you your balance, repayments so far and how much you have paid in interest.
2.8.3 A regular savings repayment is required alongside your loan repayments. This varies between £1.00 per week and £5.00 per week depending on the loan product.
Continuous Payment Authority Terms and Conditions update
3.2 Initial one – off payment
Payment can be set up by members with an active loan by contacting PCCU or via portal, which can be found on pccu.myselfserv.co.uk.
3.3 Reoccurring Payments Agreement
Your payments will occur at regular fixed intervals.
PCCU will ask you to allow the same amount to be debited from your card automatically at a regular fixed interval.
This allows payments to take place at a regular fixed interval.
Payments can run for a fixed period.
A regular agreement can initiate the payment whenever it is required.
The amount only has to be specified once by you, when the regular agreement is created.
You can change the amount once the agreement has been created.
Note that the change must be made at least 2 working days before the next payment is due.
An agreement can be cancelled by you at any time, however we would advise you to set up another payment method as otherwise you will be in breach of your loan agreement.
3.9 If a transaction is refused by your financial institution.
If your regular payment is declined for any reason, including insufficient funds, closed account, or unauthorised account your payment plan might be extended.
The full Loan Terms and Conditions can be found here.