NORWICH CREDIT UNION

EVERYDAY LOAN
TERMS & CONDITIONS

1. The lender will lend and the borrower acknowledges that they have received, the sum borrowed under this agreement. The borrower will repay the loan (i.e. the Total Amount Owing) by the repayments set out in the ‘Loan Details’ section.

2. Interest will be calculated daily on the unpaid balance of the loan.

3. The borrower has the right to settle the Agreement early at any time by paying in full the balance of the loan and any unpaid interest outstanding. The lender will, on request, provide the borrower with a written statement of the sums which have been paid and which remain outstanding under the agreement.

4. The borrower acknowledges that the details given on the Loan Application for this Agreement are correct and complete to the best of their knowledge and will inform the lender immediately of any change in financial circumstances which may reduce their ability to repay the loan or of any change in their contact details (address and, as applicable, telephone number(s) and email).

5. If the borrower fails to pay any amount due to the lender under this agreement, or breaches any of its terms, the lender has the right to demand early repayment of all or part of the balance of the loan outstanding, together with any unpaid interest. The lender will give the borrower written notice not less than seven days before taking any action to recover any such sum, with notice deemed to be served to the last know address of the member.

6. The borrower acknowledges that, if any loan agreements are not paid, or are paid after the agreed time, this may result in the total interest payable being greater than stated. This will also increase the Total Amount Payable under the Agreement.

If larger or more frequent loan repayments are made, this will result in reduced interest being payable and a smaller Total Amount Payable.

7. The Borrower will be liable for any costs the lender incurs in recovering sums due under the Agreement.

8. The borrower agrees that on default of repayments, information about the loan may be passed on to the Department of Work and Pensions (and successor agencies) for their consideration of deductions from the benefits that the borrower is or will become entitled to.

9. During the term of the loan the borrower will pay to the lender the amount of savings specified in the loan agreement when each loan payment is made. Borrowers can save more than this if they so wish, but these specified payments shall be placed in a separate share account, which shall not be withdrawn during the term of the loan but shall be freely available to the borrower when the loan is repaid. These savings will attract a return at the same rate as other share account savings. The borrower assigns the lender as security for payment of the loan, interest, and any costs payable under this agreement all paid shares and payment on account of shares which have been made or will be made in the future. The lender has the right to set off or apply any such shares towards payment of those sums.

10. The borrower authorises the lender to make searches at credit reference agencies before granting the loan and if they default on an agreement to use their services or that of a debt collection agency to trace the borrower’s whereabouts and recover debts owed.

11. The borrower authorises the lender to search, link and/or record information at credit reference agencies about them and a guarantor if used.

12. We are unable to offer our Everday Loan to anyone who is currently bankrupt, in a DRO, IVA or Debt Management Plan. We are also unable to lend if you have unaddressed CCJs or have defaulted on current credit in the last 12 months.

Loan Insurance: In the event of your death any outstanding loan balance will be repaid via the CreditUnion Loan Insurance Policy. However there will no payment under the policy if the death occurs:- within 6 months of setting up the loan and is due to a pre-existing medical condition if the loan is set up after your 80th birthday. NB In the event that your loan is not covered by the Insurance Policy then any shares attaching to your account will be used to reduce the outstanding loan balance and we may seek to recover the outstanding debt from your estate.

Disputes: If you dispute the amount of loan outstanding, or any other matter in connection with your loan, complete a Complaints Form (obtainable at any Collection Point) and send it to the Complaints Officer, at our registered office: Norwich Credit Union, 26 Pottergate, Norwich, NR2 1DX