Your questions answered
A credit union is a community savings and loans provider that exists to provide financial services to a common group of members. Credit unions are owned and controlled by their members and offer a real alternative in the community for safe savings and affordable loans. Members of the credit union pool their savings to provide the funds from which loans are made. The interest on loans pays for the running of the credit union and members get a share of the profit known as a dividend. They are committed to doing business in a way that contributes to the community and meets the needs of members. Money is kept in the community by the savings on loan interest by borrowing from the credit union and because profits are shared amongst the people who use the credit union – the members.
Yes. Member savings are protected by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a credit union is unable to meet its financial obligations. Most depositors – including most individuals and small businesses – are covered by the scheme. Find out more about the Financial Services Compensation Scheme.
We are also authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. This means that we meet strict conditions for trading, we are required to submit information on our financial performance to the regulators every three months.
Anyone who meets the criteria for membership for a credit union can join. To join Hoot Credit Union you must be 16 years of age or older and live, work or study in the BL0-BL9, M25-M29, M38, M45 and M46 Postcode areas or be employed by a partner employer. For more details click here.
Hoot savings accounts do not earn interest but as a co-operative you are a shareholder and will get a share of the profit (a dividend) in proportion to your savings each year (subject to credit union performance).