Credit Union Debit Card-Will it cost you?

DavidLGrieve

I noticed that our local Credit Union here in Scotland, has recently started to distribute Fliers advertising a Debit Card Scheme, run by them.

On first glance it looks good- If you are in receipt of Benefits or on a low Income, and agree to have your Income from either, paid directly into the Credit Union, they will :-

(1) Provide you with a free Debit Card, with no credit checks, that you can use at any ATM or High Street or On-line Shop.

(2) Automatically transfer your set Rent/ Mortgage and/or Council Tax Payments directly from your Account, immediately your Benefit or Wages are transferred into your Account, so to prevent you running up any Arrears.

(3) Allow you to set up and pay, any Direct Debits or Standing Orders, on your Account.

HOWEVER.............

I've just read (in very small text on the Flier) that "Fees may apply.."

On checking, it seems that there are "Fees"...

(1) When a Payment is made into your Account

(2) For Standing Orders or Direct Debits going out

(3) For transferring set amounts to your Landlord/Mortgage Provider, or Council Tax Offices, immediately your Benefit or Wages are paid into your Account.

Other "Fees" apparently are also payable in addition to those shown above.

This really worries me- it seems to be a premium pre-paid Debit Card Scheme, that will cost anyone who uses it money, and has been set up as a profit-making enterprise.

What do other people think of it? Is it worth the bother, or a waste of time and money?

Dave.

grumbler

I've never heard of a prepaid card charging for incoming bank transfers.

tomtontom

It depends on a) how much the fees are, and b) whether you are capable of handling your own finances or not. Link to more information?

Something like this?

http://www.engageaccount.com/about/#classic-account

They do offer a fixed fee account also.

colsten

OP, what's the name/URL of the credit union?