Credit Union terms changed, nothing in writing, is this legit?

NeverShareAgain

Hello Money Savers. I'm a posting n00b, but I've been an avid reader on the forums for ages.

I have my salary paid into my bank account, but I also hold savings with a credit union as I like to support local initiatives. Maintenance and family allowance are paid into my credit union, where I save some, pay towards a small loan I had to do up my daughter's room, and have the remainder accessible for clothing, toys or anything else she needs, whilst keeping it separate to my earnings.

I joined the CU 13 months ago, when we moved to the area with literally nothing. It has been a long process doing the place up, and since we don't use our boiler at all now, as I have posted on the long running NIBE thread, I applied (using their online form) for a loan to get carpets (we have nothing apart from flooring in the bathroom and kitchen area), the carpet fitting, and some new curtains, ready for winter. This was at the start of August.

I was told via phone that my application would not be processed unless I took out an Escape card with them for the loan to be loaded on to. The card would come with usage fees added by them. Loans used to be given over the counter by cheque, or via bank credit. On their site and leaflets, Escape cards are portrayed as an "option", or "another feature" of the CU, and a "choice"- the wording is not clear and I know it may be semantics, but... here's the email I sent 5 days ago. They always previously replied the same day, or next working day:

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Hello. (membership number)

I joined your credit union, and took out a loan with you a good year before the "Escape" prepaid cards were brought in as an "optional facility". I applied for a subsequent loan last month, and was told that it is now a requirement that one must take out an Escape card with you, before a decision can even be made as to whether or not a loan will be offered.

I'd like to see this in writing please, as I have searched your website in the six weeks since my application, expecting to read updates to reflect this change in your terms, but have been unable to find any revisions to this effect, or indeed any updates at all.

I downloaded the "Escape t&c" as advised when I rang yesterday asking if staff could let me know where to read relevant policy changes, but did not notice any clause there stating that one must have an Escape card. The information did not mention ******* Credit Union's loan policy, or link Escape to ****** Credit Union, but was just a pdf of Escape's t&c from their own site.
Your own t&c from your site regarding an Escape card do not mention it is a requirement of taking out a loan with you, and differ from the ones' on Escape's own site only by the fact you add a weekly charge of your own.
The only information I have had so far has been verbally put to me, no disrespect to your staff intended.. they do a grand job and it is not about disbelieving them, but about my learning/comprehension disabilities dictating my need for a hard copy of anything important as reference for times when I am struggling with confusion and "brain fog"

When it comes to financial matters, I like to have all relevant conditions in writing, as a memory aid and reminder of my commitments. I am sure you will agree that when it comes to money, it's a good idea to make damn sure you know what's what, lest you rely on something only to find the goalposts have changed.

I was also sent an email a while ago that looked very much like a phishing scam.. an application form to be completed and signed online for an Escape card. It was unsolicited by me. I have a "cash plus" card already that I'm happy with and that affords me greater freedom than Escape does (according to the T&C I have read for it) and so I am reticent about having to pay another £5 a month for a further card, before I can even get an answer as to *if* I can take a further loan or not. I have since found this was a legitimate email sent by yourselves, but with no introductory note, you can understand why I was concerned about an unsolicited card request.

I had been intending to increase the amount of money I pay into my account with you, but I am put off by conditions changing unannounced in the time since I have become a member, and while I appreciate the need to update and move forward I do feel that forewarning and clarity are important when it comes to finances.

In all honesty, if this thing with the Escape card was clearly available to scrutiny when I was researching your CU before joining, I'd have decided not to become a member.

Yours Faithfully,

Miss *** *.



I feel fobbed off, and belittled by the fact that a simple request is treated as an inconvenience. I get that most people they deal with take things at face value. I am one of those annoying people that likes to know my rights, as I have been lied to and manipulated hither and thither in small ways over the years, until I realised that it's a good idea to research things that ring alarm bells or that matter to you. Knowing what my cash does matters to me
I hate the assumption that I'm stupid.

forgotmyname

Bit sneaky of them.

Close the account if your not happy, Have you worked out the actual cost of the loan does it
work out cheaper then getting one from elsewhere?

Big companies make similar mistakes (Littlewoods) so it doesnt surprise me a credit union may make silly
mistakes.

NeverShareAgain

Forgotmyname, I have two payments to make so I'm going to pay it off this week and withdraw my "shares" as they call it and close the account, and see what I can get done using those.

I hate sneakiness. Its just a shame that isn't regulated :cool: