Community Lives Consortium

LASA CREDIT UNION

From January 2003 employees of the Community Lives Consortium can join LASA and have savings deducted from payroll. If you wish to join then you must complete a green application form and authority for deduction from salary and this can be obtained by contacting the Personnel Department and returning the form to them. Application forms are also held in reception at the Walter Road Office.

LASA (Loans and Savings Abertawe) Credit Union Ltd is a socially responsible provider of financial services for anybody who lives, works or volunteers within the City & County of Swansea. LASA are a community savings and loan service which is open to all, regardless of employment or financial standing.  Overall LASA Credit Union is run 'By the People for the People' of the City & County of Swansea.

A Credit Union is ...

...a voluntary run, financial co-operative. It is set up by local people for the benefit of local people. It works on the mutual principle that members save on a regular basis creating a pool of money which is used to fund low cost loans for themselves and other members of the credit union. In the UK there are around 700 Credit Unions.

...democratically owned and run by its members. To join, members pay a one-off fee, currently £5.00, and buy and agreed minimum share of £1. Everybody who joins becomes a co-owner. LASA is run by volunteers who can be elected on to the Board of Directors or other committees. Members have one vote regardless of how much they have saved or borrowed.

Credit Unions Abroad

Credit Unions are described as Britain's best kept secret. In Ireland, nearly half the population below to their local credit union. Credit unions also thrive in America, Austrailia and throughout Europe. Here, they are major players in the financial services market providing cheque accounts and mortgages.

Savings

Savings can be deposited at collection points, which will be setting up throughout Swansea, by standing order, or by deduction directly from the member's wages. Withdrawals are normally permitted with 7 days notice. Members who invest more than they borrow are very important to credit union for without them money would not be available to lend those in need.

Dividends

An annual dividend may be distributed to credit union members. A decision on the level of the dividend is taken at the AGM each year.

Loans

Any member over 18 years old who has been saving regularly with the credit union is eligible to apply for a loan. The maximum size of loan is decided by the Board. Currently the first loan may be up to twice the balance of the member's savings with subsequent loans set at three times the balance. The first loan is usually paid back within 12 months but further loan repayments can be spread over three years. No loan may exceed the members level of savings by more than £5,000.

Cost of Borrowing

The cost of borrowing with a Credit Union is fixed by law at a maximum of 1% per month on the decreasing balance of the loan (12,68%). This means that interest charged on a loan of £100 repaid over 12 months would amount to just £6.50.

Ethical and Local

A credit union provides an ethical and local choice to mainstream financial providers. It is a non-profit making community organisation which means, once running costs are covered, the surpluses are either distributed as dividends to members or held in reserves by the credit union. There are no third party shareholders. A credit union is socially responsible and can make a valuable contribution to the challenge of financial exclusion.

Insurance and Safeguards

Credit Unions are insured against theft and fraud and are closely regulated by The Financial Services Authority (FSA). Under the FSA's compensation scheme members of a credit union are afforded the same protection as a customer of any high street bank or building society. There are strict legal guidelines on how a credit union is run with regular checks and audits.

Other Benefits

Other benefits of belonging to a Credit Union include:

• - Life insurance on savings - provided by the credit union at no direct cost to members. If a member dies their nominee received a benefit equal to the member's current level of savings.
• - Loan Protection - paid by the credit union at no cost to members. If a member dies their outstanding debt will be cleared in full (providing repayments are up to date at the time).
• - Volunteers may receive training, learn new skills and meet new people.
• - A Credit Union brings people together, boosts community spirit and empowers people to take a greater control over their own lives. Credit unions are all about ....

If you would like further information please contact:

Loans & Savings Abertawe (LASA) Credit Union Ltd.
Undeb Credydd Bethyciadau a Chynilion Abertawe Cyf
Registered Office / Swyddfa Gofrestredig:
10 Calvert Terrace
Swansea
SA1 6AR
Tel / Ffon: 01792 643632
Fax / Facs: 01792 643634

e.mail: lasa@creditunionswansea.co.uk