General Enquiries: 020 7561 1786 or Email: info@credit-union.coop      |       CU Loan Repayment Issues Only: 020 3763 8397  or Email: loansupport@credit-union.coop

Ethical Savings

We promote mutual self-help rather than charity, & saving rather than borrowing, with savings being pooled and “reinvested” into the community in the form of low-cost ‘Saver Loans’. This provides a real alternative to loan sharks. These low-cost loans can then be accessed as an alternative to high interest credit used by less advantaged people in our community. Any saving with us is an ethical investment that benefits the community. Most members save a little regularly, but others choose a Community Investment, a one- off withdrawable deposit (£500+) to a Credit Union savings account

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Ethical Savings

We promote mutual self-help rather than charity, & saving rather than borrowing, with savings being pooled and “reinvested” into the community in the form of low-cost ‘Saver Loans’. This provides a real alternative to loan sharks. These low-cost loans can then be accessed as an alternative to high interest credit used by less advantaged people in our community. Any saving with us is an ethical investment that benefits the community. Most members save a little regularly, but others choose a Community Investment, a one- off withdrawable deposit (£500+) to a Credit Union savings account

 Why should I Save with Community Investments?

For many people, the ability to borrow money can make the crucial difference in being able to replace a broken cooker, fridge or simply being able to buy the school uniforms. More and more people are having to take out loans and a lack of options means that they are often forced to turn to high interest providers. With some well-known payday loan companies charging APR’s of 7,000%, these loans cost people a fortune and often leaves people unable to buy basic foodstuffs.

Access to the Credit Union’s low cost credit is essential for such people. Our ‘Saver Loan’ is lent at a rate of just 12.7%apr on the reducing balance and greatly reduces the costs of borrowing for some of society’s poorest members. Recent financial analysis concluded that for every £1 we lend to members, they save a full £1.25 over the course of a year in interest payments, bank charges and fees.

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How does the ‘Saver Loan’ help people in the long term?

When someone takes out a ‘Saver Loan’ with the Credit Union, part of their repayments are allocated to a savers account which they cannot access until the loan is repaid. In this way, over time, members move from being borrowers into being savers and are more likely to build up the savings necessary to overcome problems themselves when they arise.

How much does it cost me?

It costs nothing to make a Community Investment. The money you invest remains your money and can be withdrawn on demand, normally within 5 working days. Savers are also paid an annual dividend on their savings which is a distribution of surplus in the lending business.

Is my money safe?

Your savings with the Credit Union are protected under the Financial Services Compensation scheme (FSCS). This guarantees repayment of savings of up to £85,000 per person if the Credit Union were to fail. The FSCS will automatically compensate savers without their having to apply. The FSCS aims to compensate the majority of savers within seven days and pays any remaining claims with twenty working day

The benefits of your investment

£5000 invested in our ethical savings plan:

after 1 year

The value of your investment to the community is

£6,250

After 2 Years

The value of your investment to the community is

£12,500

after 3 years

The value of your investment to the community is

£18,750

Making deposits into your Credit Union account.

We are not able to have DWP or HMRC payments made to your credit union account, other than child benefit.

Standing Order & Bank Transfer

These payment methods are suitable for one-off deposits and/or recurring payments into savings from your bank account.
The easiest way to set up a Standing Order is to use online banking or to contact your bank.

You must use your membership number (or NI Number) as the reference for every payment.

Our Bank Name: The Co-operative Bank

Our Sort Code: 08-92-50

Our Account Name: London Capital Credit Union
NB Some banks may say account does not match the name because our full name, London Capital Credit Union Ltd., is too long. You can ignore the error message and use these details.

Our Account Number: 67003299

Your Reference: Your credit union membership number or your NI number in order that we can credit the payment to the correct account.

Salary Savings Schemes

Many people can make regular savings deposits or loan repayments directly from salary. CLICK HERE to access the Online Salary Savings Schemes Form.

Cash

We only accept cash for initial deposits. If you make your first deposit by cash the maximum we can accept is £50.

Cheques

Cheques should be made payable to 'London Capital Credit Union' or payable to yourself. We can also accept cheques payable to yourself. You should note that it will take at least 12 working days before you are able to draw on funds paid in by cheque.

Save with your Child Benefit

Once you have your credit union membership number you can save by having your Child Benefit paid directly to your savings account. complete the form below. You will need your membership number and your child benefit reference number to complete the form.

Find out how

The Jeremy Hopgood Rooms, Caxton House, 129 St John's Way, Archway, London N19 3RQ
Tel: 020 7561 1786 (Multilingual advisers available)
Email: info@credit-union.coop

If you have a loan from us and need a little help managing repayments then
please call us on 0203 763 8397 to speak with one of our friendly Loan Support Officers who will find a way to help.

© 2026 LCCU  |  Complaints  |  Privacy Policy

© 2026 LCCU  |  Complaints  |  Privacy Policy

How We Decide to Whether to Offer a Loan – The Basics

The Credit Union’s primary objective is to help members avoid or escape from debt by promoting a culture of saving. When we offer loans, we only do so if the borrower agrees to save a little while they repay. The establishment of a savings habit is proven to reduce the harms and risks of long-term borrowing becoming problem debt. Basically, when we get a loan application our decision is based on the following two principles:

1. Do we trust the applicant to repay the loan?

2. Can the applicant afford the loan repayment

This guide is designed to help members understand our thinking so you can best prepare if you should need to apply or re-apply for a loan.

1. Key Points in Our Assessing Trust of the Applicant

a) Has the applicant started saving? The money we lend is members savings so, especially at busy times, we have to give priority to loan applications from members who have made at least one savings payment. That first payment is good evidence that you are a real person and helps us confirm identity.

b) Proper Proof of ID & Address? What forms of proof of identity and address has the member provided? If you are able to connect your bank account through ‘open banking as art of the loan application process it a good way of proving ID. First time loans may be required to use online Open Banking.

c) Previous Borrowing History. Has the applicant borrowed and repaid us previously? Previous good repayment record supports any application.

d) Did the applicant inform us of other money owed? Failure to list all debts in the application process is likely to result in the loan application not being approved. It suggests that the applicant is either not in control of their money or not being completely honest with us and in either case we cannot put our members savings at risk by lending. Credit Reference Agency checks are used to show us what money is owed and to whom.

e) Is the member sensible with money? When we review the bank transactions of the loan applicant, we often see patterns of expenditure that suggest the applicant is not taking a sensible approach to expenditure. Changes in the way they manage their finances would suggest that the loan would not really be necessary. We want to help people be in control their finances and do not want to lend members savings to people who are not deemed sensible with the way they spend. This may be things like gambling, excessive shopping and/or eating out/takeaway food deliveries.

f) Always be ‘up front’ in your application. Honesty pays. We do not judge.

2. Key Points in Our Assessing Affordability for the Applicant

a) Is this loan in the member’s best interest? The value of the loan application in comparison with your income is a key measure of affordability. The loan interest members pay on loans pays our staff salaries, but we are not out to profit from you, rather we want members to borrow less over time and take control of their finances.

b) Positive Bank Balance at Month End? Is there money left in the members bank account at the end of the month that would be sufficient to cover the loan repayment if approved? If not, the member must explain how the loan would become affordable, for instance, by reducing expenditure in other areas.

c) Is the applicant struggling with existing debts? When we review the bank transactions of the applicant we can see income and expenditure. If the loan applicant tells us how the loan will clear other debts and reduce their expenditure this will help us understand affordability.

d) Is the purpose of the loan considered sensible? If the applicant is not paying essential bills such as mortgage or rent then a loan for a car or holiday is likely to be unwise and unaffordable.

e) Has the applicant fully explained why they need to borrow? Always feel free to email or call us explaining the circumstances that mean you need to borrow. The reasons for needing to borrow are complex, but being honest and explaining the circumstances can often help the ordinary humans on the Loans Team at the Credit Union to be able to assess trust and affordability. You briefly explaining your thinking about affordability gives us confidence that you are thinking sensibly about money, and sometimes allows us to suggest alternatives that may well be in your best interest.

f) Is the loan to clear other more expensive debts? Credit Reference Agency checks are used to show us what money is owed and to whom. If your loan application is to pay off other debts, stop and list every one of those debtors.Work out the cost of each. Consider clearing one or two at a time if its your first Credit Union loan. Pick them off one or two at a time, the most expensive first.

g) Has the applicant stopped to think about affordability? The ‘Your Money’ section of our website provides access to a budget planner which, if used and shared, gives us good evidence of affordability. Particularly helpful for loan applicants in financial stress. We hope this gives you an idea of how we decide yes or no to loan applications. The decision is by one or more other credit union members on our Loans Panel. We hope this helps you understand our thinking so you can best prepare if you should need to apply or re-apply for a loan.

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