Here at Hoot, we talk about the ‘credit union difference’, but what does it mean? We say we are different to regular loan companies because we are!
We are owned by our community
Hoot, like all credit unions, is owned by its savers and borrowers – our members. Members are represented by elected Board members who lead the development of the business in the interest of members. Profit is shared amongst the members, so everyone who saves benefits from our success.
We promote good savings habits
Loan companies are driven by profit. We care about helping our members access fair and affordable credit; and build savings for the future. That is why all of our members save. When someone takes a loan, a minimum saving amount builds up and acts as collateral against the loan. Account holders have been pleasantly surprised at how quickly this pot can build up.
But you can save without borrowing!
More than just a credit score
We aim to provide fair and affordable loans. This means that we look at individual circumstances when assessing a loan application. Whilst we do take a person’s credit score into account, we also look at affordability and any previous borrowing with us.
Making the most of your money as the cost-of-living crisis continues to bite is more important than ever. Credit unions are committed to financial education, offering hints, tips and tools to help people manage their finances better
If you open a Hoot account or take out a loan you will be able to manage your account online and be reassured that, as a regulated, member-focused co-operative, we have your interests at heart; and run the business for the sake of the community.
At Hoot we want to make applying for a loan as easy as possible, but we feel it is important that you understand what getting a loan with us means.
If you are accepted for a loan you will be asked to sign a loan agreement. This includes the terms of the loan and what will happen if you don’t make the repayments. It is important that you ALWAYS read the terms and conditions of the agreement before you sign. Here are some of the things you should check when you apply.
Are you borrowing what you need?
Is what you want to spend the money on essential? Could you wait and save for what you want? Better to ask what you need to borrow than how much you can borrow.
Can you afford the repayments?
Your repayments will depend on how much the loan is for, how long you agree to repay it over, the agreed interest. You should make sure that by taking out the loan you are not overstretched and can afford the repayments.
How long will it take to repay?
Your loan repayments will include interest payments (This is called Cost of Credit) and is the amount you pay as your charge for getting the loan. Add this amount to your original loan and this is what you will repay altogether.
Are there any extras?
With a credit union loan there is no setup fee, early repayment or late payment charges. So if you want to make extra payments or want to pay early you can with no charges. In fact, if you pay your loan off early you will save on interest!
Are you comparing like with like?
APR% will help you compare loans but you should remember to compare only loans that you would be eligible to get. For example, if you have a poor credit history, comparing with a bank loan with a low APR% that you would need an excellent credit rating for, wouldn’t give you a true picture of what your options are.
What do we look for?
When we look at a loan application, we always take three things into consideration
CASH recovered from illegal money lenders in the North West is to be used to help savers working in Bolton and Bury
Employees of Carrs Pasties and Bury Council are being offered a cash boost to help them save more as part of a new credit union initiative in partnership with Stop Loan Sharks,
Employees who join Hoot Credit Union between February and May this year, and start saving via their payroll, will qualify for a £10 matched savings bonus after four weeks of saving. There is also a chance to get a further £200 savings boost if they carry on saving until May.
The bonus is being paid by the England Illegal Money Lending Team (IMLT), also known as Stop Loan Sharks, and funded by money confiscated from illegal money lenders under the Proceeds of Crime Act.
Chris Canham, Community Engagement Manager at Hoot, said: “Hoot has been providing ethical savings and loans services to the people of Bolton and Bury since 2005, and work with a number of local employers encouraging employees to save through payroll. Building savings is the first line of defence to be able to cope with financial emergencies, and Hoot has 6,000 savers from a wide range of the community.
Sadly, many people in the Borough are falling into the hands of loan sharks.
Many loan sharks will resort to bullying tactics, such as intimidation, threats and even violence to enforce repayment, and often won’t set an interest figure or have any form of paperwork.
“We want to make loan sharks history in our borough, so we’re delighted to work in partnership with England Illegal Money Lending Team (IMLT) to offer this incentive to payroll savers and show people there is a better, safer and more affordable way to manage their money.”
Anyone who thinks they, or someone they know, may have been targeted by an illegal lender in the area is urged to contact the Stop Loan Sharks team’s specialist officers for help and advice.
There is a 24-hour confidential hotline on 0300 555 2222 and a Live Chat facility available on the website Monday to Friday, 9am to 5pm. For more information visit stoploansharks.co.uk
Hoot was featured on BBC NorthWest Tonight on February 9th talking about the benefits of joining a credit union. The piece was part of a bigger story about the dangers of loan sharks and illegal money lenders, and was done in conjunction with the Illegal Money Lending Team.
Filming at our Bolton Town Centre Branch, Chris Canham – Community Engagement Manager talked about the lack of options for affordable credit for people with a poor credit rating or a low income. She went on to say that many people had come to Hoot as their last option for legal and affordable loans, and in doing so, has avoided the clutches of illegal money lenders.
It is estimated that around 8,000 people in Bolton alone may be in the hands of a loan shark. Hoot is one of the many organisations in Bolton working to eradicate this illegal and erroneous activity. These people are paying enormous rates of interest on their loans, with no paperwork and often threats when they miss payments.
If you think you are, or know someone who is the victim of an illegal money lender, contact www.stoploansharks.co.uk to find out how to report confidentially.
