Doorstep Lender Morses Club Stops Lending Money

November 22, 2023 11:11 am Leave a Comment

Biggest dootstep lender in the UK Morses Club goes into administration

Morses Club has stopped lending after 130 years. Once Provident exited the doorstep lending market in in 2021, Morses Club was the largest doorstep lender in the UK. As with any business failure our thoughts are with the 350+ employees that work for Morses Club as they enter into administration however we will not miss a company charging people in our community an eye-watering 343% APR on loans.

We know many people in our community were part of the 140,000 customers that Morses Club provided loans to over the last year and we urge anybody who finds themselves needing borrow this Christmas or into the New Year to contact Northern Community Bank and let us talk you through your options. We have saved our communities hundreds of thousands of pounds since 1982 when compared to loans like Morses Club and the other doorstep lenders, and we continue to be committed to providing affordable borrowing opportunities for all members of the community.

The Debt Camel website provided a detail explanation of why Morses Club has gone into administration which we would recommend reading here.

Do I continue to repay my current Morses Club loan?

You are not expected to repay your loan in full immediately because of the administration, it is very important that you continue to repay as normal because you borrowed the money.

The administrator has stated

“Any payments due in respect of your outstanding loan balances should continue to be paid as normal, as not doing so is likely to impact your credit score and ability to borrow.“

However if you are struggling to make repayments then you are advised to contact the Morses Customer Service team on 0330 045 0719 and ask for a payment arrangement. You can also speak to the National Debtline on 0808 808 4000.

Loans like Morses Club offered are rarely in the best interest of the applicant. They’re in the best interest of the company offering them. Profit is the name of the game after all. As Northern Community Bank is a not-for-profit co-operative, our attention is focused solely on the applicant and their financial situation. That’s why we’re able to offer such competitive interest rates. We’re more than just affordable interest rates though. We pride ourselves on unbeatable service, too. Our experienced staff are on hand every step of the way to guide you through the process. We provide a ‘Save As You Borrow’ scheme in order to create financial stability for the account holder. And we even offer a free bereavement fund benefit on savings and loans.

Morses Club’s loans tended to be for small amounts at relatively high interest rates. Jumping from one high cost lender to another will only result in kicking your finance problems down the road. That’s why family-friendly community banks across the country are now striving to help fill the gap left by Morses Club, but in a fairer, more ethical way.

So before you jump from one high cost lender to another, speak to a member of staff at any of our branches in Burnley, Nelson or Colne by calling 01282 691333 or apply online here, and give us the chance to put your mind at rest.

Budgeting

December 21, 2022 12:24 pm Leave a Comment

What is a budget and how can I do it?

We all know the feeling, we receive our income and the by the time we’ve paid a couple of bills there seems to be nothing left? If you’ve not experienced this great, you don’t need to budget…or is the completely true? Even the most money savvy people want to budget better.

Budgeting can be as complicated as you like, you can mark down every penny you spend, you can portion it off for different expense but it is as simple as

Balancing your expenses with your income. If they don’t balance and you spend
more than you get, you will have a problem. Many people don’t realise that they spend more
than they earn and slowly sink deeper into debt every year “

My money coach

Different budgeting tools

There are a number of ways to check where you are spending your money. Click here for the Money Advice Service budgeting tool which is excellent. Another easy way is with a piece of paper;

Make a list of your incoming money – Wage, benefit entitlement, children’s board, maintenance, pension, and returns on savings or investments
Then make a list of all your regular outgoings or expenses – Food shopping, rent or mortgage, Gas/Electric, council tax, insurance, child care cost, loans and credit agreements, mobile contracts or top-ups, internet, travel expenses such as car/public transport, socialising and any other regular payments
To recalculate income/expenses from weekly or fortnightly to monthly
- Weekly to Monthly: £Figure x 52 divided by 12 = monthly
- Fortnightly to Monthly: £Figure x 26 divided by 12 = monthly

4. Take the monthly income figure and minus the outgoing/expenses figure

If you have a minus number, you have a problem where you are spending more than you receive
If you have a plus number, you have money left over and according to your budgeting sheet have money to spend after paying all expected bills. I’ve got a plus number but know I never have that much left over? At this point you need to re-evaluate whether you have included all outgoings, the Money Advice Service budgeting tool will allow you to dig deeper and identify areas of spending

Another basic model for budgeting is the 50/30/20 method. Nerdwallet explain how your monthly income should be split 50% for things you need, no more than 30% on wants and 20% on debt repayment and savings.

Budgeting wants and Needs – what to do next

If you do not have enough money at the end of the budgeting process, then you need to use the information to list what outgoings you can not live without and what spending you could cut out or reduce.

How do I divide my money after I’ve worked out my budget?

There is no right way to do this, some suggest that you jam jar you income, where as some manage to do this with good money management, without physically moving income around.

Jam Jar – when your income arrives, create ways to split into manageable amounts for your expected outgoing. Things you need first – Food, housing, utilities, childcare, travel, loans and credit. Then the remaining surplus money can be used for ‘wants’ and saving.

Many people use different bank or savings accounts to carry out the jam jarring. Some account holders use physical envelopes, jars or money bags to separate money. At Northern Community Bank we have a Bill Planning savings account which can help you to budget your money in this way.

Budgeting allows you to create a spending plan for your income, it ensures that you will always have enough money for the things you need and then identifies the remaining money for things that you want and are important to you. It does not always work but by having the figures in front of you it allows you greater control over your finances.

How will an IVA or bankruptcy affect me

July 24, 2022 3:04 pm Leave a Comment

Television and newspaper adverts are increasingly telling people how easy it is to wipe your debt off and start again. However are people being shown the full picture when considering an individual voluntary arrangements (IVA) or bankruptcy?

At Northern Community Bank we occasionally come into contact with members of community who have chosen to go down the various routes to wipe their debts but have not always been aware of the consequences that are attached. Some limiting restriction only affect people whilst in the process; however there are side effects that impact on a person ability to borrow in the future or even on household status.

As a Community Bank we encourage any saver or borrower who has an account with Northern Community Bank and feels they are struggling to cope with their debt to get in contact as soon as possible. Any responsible lender should attempt to work with a borrower.

Bankruptcy and IVAs should be seen as a last resort and in many cases may not be necessary. Contacting creditors to arrange informal arrangements to reduce debt within a person’s budget could be a far better solution.

“If you have extreme debts, a formal debt solution – bankruptcy, individual voluntary arrangement or debt relief order may be the only way back. It’s not a step to be taken lightly, and you should ALWAYS seek debt advice first.” – Martin Lewis, Money Saving Expert

The world is awash with companies who promote the idea that they are helping people when clearing debt but many have financial motives at heart. There are a number of independent and free advice services available, we looked to StepChange for some of the negative impact on entering an IVA or bankruptcy.

What impact can an IVA and Bankruptcy have?

And what do an IVA and bankruptcy have in common?

There are a few things that an IVA and bankruptcy have in common, regardless of which one you go ahead with. They would both:

Be recorded on your credit file for six years from the date they begin. While this information is on your credit file you may find it difficult to take out any further credit.
Mean your name is entered on the Individual Insolvency Register. This is an online database of everyone who’s gone bankrupt or been in an IVA or debt relief order.

Will bankruptcy or an IVA affect my job?

Some jobs might be affected if you’re on an IVA or go bankrupt.

The best way to find out if an IVA or bankruptcy would impact on your job is to check with your professional membership body or trade union, or ask to speak to your HR department confidentially.

Bankruptcy is more likely to affect your job than an IVA, and in both cases it’s more likely to cause a problem if you work at a senior level.

How will an IVA or bankruptcy affect my home?

IVAs and bankruptcy will have different effects on your home, and this will depend on whether you rent or own it.

If you rent your home during an IVA: If you rent your home, an IVA should have no effect and it’s very unlikely you’d need to move.

If your rent your home and go bankrupt: If you go bankrupt you can usually stay in the same property if your rent is up to date.

However, some private landlords include a condition in the tenancy agreement which means you could be asked to leave if you go bankrupt, You could also lose your home if you have rent arrears when you go bankrupt.

If you own your home during an IVA: You won’t be forced to sell your home but you might be asked to remortgage it six months before the end of your IVA. You’ll only have to remortgage if it’s affordable, and if you can’t, you might have to either pay an extra 12 months of payments into the IVA, or raise money from a third party instead.

If you own your home and go bankrupt: If you’ve got equity in your house it’s very likely that the official receiver (who deals with your bankruptcy) will make you sell it. If there isn’t any equity in it, you may be able to keep it.

Owning a car during bankruptcy or an IVA

If you apply for an IVA you’ll normally be able to keep your car (or van, or motorbike) as long as it’s a moderately priced make and model.
If you apply for bankruptcy the official receiver will expect you to sell your car (or van, or motorbike) unless it’s essential (for example, you couldn’t get work without it) and it’s got a low value.

Many people are surprised when they finish an IVA or come out of a bankruptcy order that they still struggle to obtain credit and have a poor credit rating. It can be difficult to obtain a mobile phone contract, let alone a bank account or mortgage.

As a Community Bank we encourage you to contact us and try to agree a solution within your budget before going down a route that could affect you for many years to come.

Using 0% credit cards smartly

December 26, 2021 12:48 pm Leave a Comment

0% Credit Cards

There is no doubt that 0% credit cards and balance transfer can be helpful if used smartly. At Northern Community Bank we talk to many people who took out 0% credit cards with the intention of using them correctly and taking what is often considered the cheapest from of credit. However problems occur when balances start to increase and making repayments get more difficult.

With a 0% credit card you make purchases and do not pay interest for set number of months. 0% balance transfer credit cards are often used to switch credit card debt from one lender to another, if used correctly it gives the borrower time to reduce the balance whilst paying no interest. However the 0% interest period will not last forever and to use the transfer effectively people need to concentrate of clearing the balance, not increasing, before the period finishes.

Only paying the minimum payment once the 0% period finishes

Credit card companies offer the low or 0% periods because they judge that a number of borrowers will not clear or reduce their balances before the introduction period finishes. We have found that over the years problems start to occur when the 0% period finishes and borrowers are unable to switch to another 0% credit card. When credit card users only pay the minimum monthly payment it really starts to get expensive and difficult to get out of

£2,611 – Average household credit card debt in the UK
24.65% – APR Average interest rate on credit cards in the UK, with 48.6% UK credit cards bear interest
27 years – How long it will take to clear the average balance when making the minimum monthly payment on a credit card

The Money Charity calculated that the minimum repayment in the first month would be £74. If £74 were paid every month, the debt would still take 4 years and 11 months to clear with no extra spending.

We turned to U-switch, one of the UK’s leading comparison and switching services to find out what interest rates the different credit card providers charge.

Representative interest rates means that only 51% of applicants have to be accepted for the advertised rate, meaning a large number can end up being charged a higher rate of interest on balances. At Northern Community Bank on loans over £3000 all borrowers who successfully apply for a loan are charged 12.7% APR.

Credit cards have been used in the UK for over 50 years however the last 20 years have seen a large increase in their use, with some balances spiraling out of control. Northern Community Bank has been available in the communities to help to relieve the financial stress caused when 0% credit card deals end and repayments feel like they are going nowhere.

Speak to one of our highly trained members of staff today if you think we may be able to help your situation.

Is it worth saving?

December 14, 2021 1:39 pm Leave a Comment

Many of us find saving difficult.

Wouldn’t it be a dream to have a lump sum in your local Community Bank saved for your future plans whilst providing you with financial security in times of uncertainty? For most of us I’m sure the answer is yes!

For some the coronavirus pandemic has really highlighted that more savings would have been beneficial at a testing time.

But what if we told you that saving a proportion of your income doesn’t have to be difficult, time consuming or limiting? Simply taking a moment to calculate an affordable amount you could save whilst identifying a goal amount could help you take control of your future savings. The next crucial step is making the transaction to deposit this money in to a savings account. Northern Community Bank has a range of free savings accounts to suit all financial needs including specifically designed accounts to help people who find it difficult to save for certain occasions or expensive periods like Christmas. In this blog we will look at:

Which free savings accounts Northern Community Bank provide, how to open, make deposits and why you should choose a credit union

Northern Community Bank Savings Accounts

Long Term Savings – this account is where account holders save through regular deposits. When joining Northern Community Bank all account holders automatically open this account whereby you can save as little or as much as you wish. This money can be accessed at any time, unless it is attached to an outstanding loan balance. Many account holders are shocked how quickly the saving balances can build up.

Easy Access Savings – This is the in and out savings account, which is easily accessible. There are no minimum savings levels, and there is not a maximum number of withdrawals permitted. Available to all adult account holders. Importantly this account is not affected by an outstanding loan balance, so is perfect for those looking to save whilst repaying a loan.

Christmas Saving Account – This account enables you to save throughout the year but withdrawals can only be made during November and December. This means that Christmas savings really are just for the Christmas period, reducing the need to be reliant on credit at this festive time of year. Last year our account holders saved £273,000, 30% of that being from Family Loan and saving scheme account holders.

Young Savers – With over 860 young savers accounts for children and young people, under the age of 18 years old, our account gives young people the opportunity to learn how to manage money and therefore helps to build financial foundations for their future.

How to deposit

Once the savings account you choose has been opened, you can deposited through a standing order, BACS transfer, card payments, benefit payments, straight from your wage through our payroll deduction scheme if your employers is a Northern Community Bank partner or finally by a cash payment in one of our 3 town centre branches. This means that you can add to your savings at any time through whichever method is most convenient to you. Although it’s worth mentioning that making these transaction automatically and regularly, without the need to even think about it, is likely to produce better results long-term!

What are the extra benefits of a Northern Community Bank savings account?

Unlike most savings accounts Northern Community Bank pays a dividend to its account holders instead of interest. This is because Northern Community Bank is a not-for-profit financial cooperative, meaning all account holders receive a share of the profit in the form of a dividend each financial year. This year our account holders received a 1.5% dividend
All savings are covered by a FREE bereavement fund benefit, so that if in the event of your untimely death your savings would be given and could be increased with the fund amount to the person you nominated (subject to rules)
All money is fully protected by the Financial Services Compensation Scheme up to the value of £120,000.
All account holders have access to our secure ‘Online Account Area’. Where balances can be viewed, withdrawals can be requested via BACS transfer and loan applications can be submitted.
As a financial cooperative the money you save helps us to facilitate more ethical loans to members of your community – it’s literally people helping people!

How to open a savings account at Northern Community Bank

If you’re already an account holder at Northern Community Bank and would like an additional account it is very easy, telephone a branch to talk to a member of staff or use the Northern Community Bank app. If you’re new to the community bank you can join online here, with the easy to follow step-by-step guide or call a member of staff for more information

What happens to my savings?

All Northern Community Bank account holders are encouraged to save with us from joining. This is because savings are very important in allowing a Community Bank to function. Although the money you save is fully secure in your account, we use this money to create a common pool of savings. This allows us to issue affordable loans to members of the community, where remaining profits generated are returned to account holders in the form of dividend.

Northern Community Bank has £14million in savings from people in your community – Join them today and support local people whilst improving your financial future

Last minute Christmas loans can be a real festive lifesaver

December 9, 2021 10:36 am Leave a Comment

When we say last minute Christmas loans are a real festive lifesaver we’re not exaggerating. Whether you’re a person who starts buying their presents in the summer, or somebody who is usually seen frantically running around shops in December; keeping track of Christmas expenses can be a little tricky.

Nobody wants to look at their bank balance a few days before Christmas only to be left wondering how they’re going to get through the festive period. But it happens, a lot. That’s why at Northern Community Bank we provide loans right up until Christmas Eve and into the New Year. These last minute Christmas loans are perfect for helping fill up the fridge full of all tasty festive treats or simply buying a few last minute presents to really spoil your loved ones with. They’ll even stop you worrying about the January payday that never seems to come soon enough.

How long does it take to receive Northern Community Bank’s last minute Christmas loans?

It’s not unusual for some loan applications to take days, weeks, even months. At Northern Community Bank, we deal in hours because we know when it comes to needing money, time is almost always of the essence. This is even more pertinent around the festive period.

We don’t want people thinking about having to apply for a loan in August, just so they have money in time for Christmas. We want people to know that even on December 20th, if somebody urgently needs money for presents, nights out, or even a turkey, our last minute Christmas loans are there for them. Our loan decisions are made by real people, not computers, and we aim to have an answer within 24 working hours. And this can be done from the comfort of your own home, away from all that winter rain and wind.

Apply online, receive a decision online, sign online. It couldn’t be more straightforward.

Let Northern Community Bank help take the stress out of Christmas

Our last minute Christmas loans are not something we just cooked up this year. We’ve been helping families for nearly four decades. In that time we have been of service to thousands of people during the festive period by providing Christmas loans at affordable rates. You can borrow as little or as much as you’d like with repayments based on affordability, meaning you won’t spend the beginning of next year wondering how you’re going to cope financially. Another Northern Community Bank perk means that if you do want to pay off your loan early, there won’t be any penalty fees to worry about.

Speak to us today if you would like more information on last minute Christmas loans. Our friendly and knowledgeable team can be contacted on 01282 691333.

What is the difference between the ‘interest rate’ and APR on a loan?

December 3, 2021 9:34 am Leave a Comment

Interest rate vs APR when choosing the right loan can be confusing. How do you know if you’re getting a good value loan? Often we are left scratching our heads trying to figure out what the difference between interest rate vs APR on a loan is. Many lenders use different words to describe the cost of borrowing but the APR is the best figure to compare. Some interest rates look more enticing and cheaper than others, we aim to explain and make it simple.

Interest rate and APR must be the same?

Unfortunately not, as Troy Segal explained the difference

The interest rate is the cost of borrowing the money. When evaluating the cost of a loan or line of credit, it is important to understand the difference between the advertised interest rate and the annual percentage rate (APR), which includes any additional costs or fees.

Annual Percentage Rate (APR)

The official rate used to help you understand the cost of borrowing. It takes into account the interest rate and additional charges of a credit offer. All lenders have to tell you what their APR is before you sign a credit agreement.

Unlike some lenders, Northern Community Bank do not offer different interest rates on loans purely based on your credit history. You will not be charged more or less to borrow money because of your credit score. Also the interest is charged on your decreasing loan balance, so as it decreases – the amount of interest you pay decreases.

Different lenders use different terms for interest on loans, we’ve listed a few but remember by law they have to give you the APR when you sign for credit or a loan. Knowing the what the different terms mean and keeping an eye on the APR could save you lots of money.

Representative APR

You will see this term used by many lenders, including the high-cost lenders through to the high street banks. The representative APR is an advertised rate that at least 51% of those accepted for the credit will get.

Crucially that means that almost half the people who are approved for the loan or credit (49%) may not be eligible for the advertised rate, that means the interest rate will be higher and they will have to pay more. This usually means the lower your credit score is, the cost of borrowing will be higher.

Personal APR

A personal APR is the rate you’re actually given by the lender or bank. This could be the same as the representative rate, or it could be higher, depending on your eligibility. The lender will usually decide what rate to offer you based on how your credit and financial information matches their criteria.

It would be beneficial to know your personal APR with a lender before you shop around, hopefully making it easier to compare, however in many cases to get a personal APR you would have to do a hard credit check with a lender – which could make it harder when you search for lenders!

At Northern Community Bank it is easy to compare loans with other lenders – speak to a member of staff for a free loan quote with the interest showing today.

Fixed Rate Interest

A fixed rate is simply an interest rate that remains the same throughout the life of the loan or credit. This is often used on mortgages.

What is the difference between interest charged on a reducing balance and flat rate?

Not only do you need to be aware of the terms lenders use for rates but also the difference between a loan where the interest charged is paid on a reducing balance or a flat interest rate.

Flat Interest Rates

Lenders sometimes use a Flat Interest Rate to make a loan look cheaper, but be careful as it does not always make it cheaper than a loan with a higher APR.

The big, and sometimes expensive difference between a flat rate and an APR is that you consistently pay interest on the amount of money that you borrowed at the beginning of the loan throughout its lifetime. It does not take into account any money you have repaid.

Interest charged on a Reducing or Decreasing Balance

A reducing rate or a decreasing balance rate, as the term suggests, is an interest rate that is calculated on the decreasing outstanding loan amount. Each time you make a repayment on the loan, the amount of interest you pay will decrease. Basically, the interest for your next loan payment will be calculated based on the updated unpaid loan amount. This is how the interest on a Northern Community Bank loan is calculated.

The key points to remember when comparing loans

While the interest rate determines the cost of borrowing money, the APR is the best way to compare loans. All UK lenders have to provide the APR when you sign for a loan or take out credit. Although some rates seem temptingly low, whether you would be accepted or are eligible for that rate is questionable.

At Northern Community Bank loan quotations are free. We do not charge set-up fees and the interest rate is not based on your credit history. You can use this calculator

Or easily get a quote from a member of staff to compare us to other lenders.

Big or small Christmas loans – Northern Community Bank can help cover the costs of Christmas affordably

December 2, 2021 10:24 am Leave a Comment

Make this festive period even more special with…small Christmas loans.

Ok, we know it doesn’t sound all that special, but a little extra money in the run-up to December 25th can make a huge difference to a person’s enjoyment – and stress – levels. You won’t need us to tell you that Christmas expenses have a habit of snowballing. The gifts, the food, the parties; it all adds up. And while budgeting may keep things on track for a while, bank balances can quickly become next year’s concern as we put every single penny into enjoying every single second of the holiday season.

There’s certainly nothing wrong with wanting a Christmas to remember, especially after last year’s diluted celebrations. But budgets are meant for stretching, not breaking. That’s why at Northern Community Bank we offer small Christmas loans; so you can take care of Christmas comfortably without worrying about how you’re going to get through January.

How much can I borrow from Northern Community Bank?

While small Christmas loans are the perfect stocking filler for most families, sometimes a little more is required. Maybe you’re planning an extra special gift this Christmas, or you’re wanting to take the whole family away for a spot of winter sun…travel restrictions permitting, of course. Our competitive interest rates make us a far more appealing proposition than payday loan companies, but more than that, our ethical lending status makes us a fairer proposition as well.

When assessing applications for big or small Christmas loans, we will always take into account an individual’s personal circumstances. We believe repayment terms should be based around affordability, meaning anybody who comes to us for help over the festive period will not be left wondering how they’re going to get by next year. And if you do wish to repay the amount in full before the final settlement date, there will be no early penalty fees.

Why small Christmas loans will help get you ready for Christmas next year

Hundreds of local people borrow money from Northern Community Bank for Christmas each and every year in order to fund their festivities. We love helping families, and we love helping a community we have been a part of now for four decades. But we also want to see our account holders on sounder financial footing, not just in the short term, but in the long term. That’s why alongside borrowing big or small Christmas loans you will be required to save. This is one of the community bank’s biggest benefits, one that means by the time next year’s festivities come around you’ll have your own pot of money ready to spend. Account holders are always pleasantly surprised at how quickly saving balances build up, just by making small but regular payments.

Christmas should be the most magical time of the year for families. Northern Community Bank’s small Christmas loans may be able to add a little extra sparkle to yours. Speak with a member of the Northern Community Bank team today on 01282 691 333 if you have any questions or apply online today in time for your festive celebrations.

School uniforms on the mind as we finish the holidays

August 18, 2021 3:16 pm Leave a Comment

As the school holidays are about to finish, for some families the realisation that they have not bought school uniforms yet is really hitting home. Unfortunately many of our account holders are very aware that schools reopen soon and that means they need to buying school uniforms urgently.

Of course buying school uniforms actually means buying much more than just the uniform; the list includes sports gear and equipment, joining clubs, calculators and for those guardians lucky enough to have children who want to participate in the after school lessons, that might mean an expensive guitar or clarinet.

How we can help with the cost of school uniform

Northern Community Bank staff have years of experience helping our account holders during the summer, when the financial stress of paying for holidays and school uniforms combine. We also know how the rules about buying particular school uniform items from certain shops is not only frustrating but often pushes the price up.

Every year people come to Northern Community Bank and tells us that they wish they’d have found the community bank last summer, when they’d felt their only option was to borrow from high-interest lenders or illegal loan sharks to purchase the school uniform items that their children needed.

Anyone who borrows from Northern Community Bank to buy school uniforms is encouraged to save alongside their loan repayments, so as the loan balance decreases – savings build up, resulting in a savings pot when the loan is finished that can go towards next year’s school uniforms.

We hope you are enjoying the school holiday, if you are thinking about how you are going to fund buying all the bits and pieces that your child needs for the start of school then contact Northern Community Bank about an affordable school uniform loan today. You can apply online or make an appointment with a friendly member of staff in Burnley, Nelson or Colne today.

Once you’ve provided us with the information we need we’ll try to make a decision as quickly as possible. We understand how vital help with school uniform costs can be and so we aim to deal with all applications within two days and, wherever possible, by the very next day. As soon as we’ve decided, the money will be transferred into your account, which puts you in the happy position of being able to start shopping for school uniform items without having sleepless nights over how you are going to pay for it all upfront.

Coop principle no.7 Concern for Community

July 5, 2020 8:00 am Leave a Comment

As Coop Fortnight 2020 draws to an end we take a look at a guiding cooperative principle that is close to Northern Community Bank’s heart – Concern for the community.

Throughout the last two weeks we have looked at the cooperative values and principles that shape the way our community bank is run. The only reason that Northern Community Bank operates is to benefit the local community. Although this cooperative principle was only adopted as an official principle in 1995, many coops including Northern Community Bank, have been living the principle since they started.

Concern for Community

Co-operatives work for the sustainable development of their communities through policies approved by their members

What does ‘Concern for Community’ mean to Northern Community Bank?

Cooperatives as businesses operate to help the people who join them and the people in the wider community. Some cooperatives work to solve problems for the community and others offer local people the opportunity to join together to solve their problems – Northern Community Bank tick both boxes. Our founders recognised that people in the community needed safe savings accounts and access to affordable loans.

Thirty eight years ago Northern Community Bank was created and run by members, just as it is today. In those years we have identified financial issues that needed to be addressed and designed products to answer those needs. For example when members of the community highlighted difficulty saving for Christmas, we introduced the Christmas Savings Account which has gone on to be a great success, helping families at one of the most stressful times of year by providing an opportunity to save as little or as much as a member wants throughout the year but only being accessed during November and December.

We work tirelessly to offer an alternative to high interest lenders that target the community, whether it be payday lenders, pawn shops or rent-to-own pay weekly stores.

Concern for the community has always been at the top of the agenda for co-operatives like Northern Community Bank. As members, if you see an area that we could help the finances of the community in – please get in touch.

How ‘Cooperation Among Cooperatives’ has enabled Northern Community Bank to grow

July 3, 2020 6:11 am Leave a Comment

Coop fortnight 2020 – principle no.6 Cooperation Among Cooperatives

Throughout the last two weeks Northern Community Bank has taken the opportunity to assess why cooperative values and principles make us different from many businesses. The current COVID-19 crisis has highlighted that when communities cooperate, we can see changes in society for the better.

Northern Community Bank is a financial cooperative providing savings accounts and affordable borrowing. The only way that we could have continued to develop and grow over the past 38 years is by cooperating with other community banks in the region and nationally.

Cooperation Among Cooperatives

Co-operatives serve their members most effectively and strengthen the Co-operative Movement by working together through local, national, regional and international structures.

What does the 6th principle ‘Cooperation Among Cooperatives’ mean to Northern Community Bank?

Northern Community Bank participate in many forums with local, nation and international community banks where we share best practice and ideas. Many of these forums are supported and facilitated by our trade body ABCUL. This may be a community bank that has developed or identified software that will benefit our members or a supplier of stationary which will reduce costs for the community bank. A recent example is the Nivo app that we successfully launched in November 2019. To say that it has been welcomed warmly by members would be understatement – the majority love the ability to complete loan application, transfer money or e-sign documents without visiting a branch. We were introduced to Nivo by friends from South Manchester Community bank, who showed us the app in action and how it could benefit members.

Other community banks have used their partnerships with businesses to bring best practice from corporate companies to the credit union model. Training session with Barclays Bank staff that have helped Northern Community Bank, were initiated through a Director at CashBox Community bank in Tameside.

We are also part of the Cooperative UK network which brings thousands of co-operatives together under one umbrella. It is often encouraging to see where we have similarities we take for granted or areas where we can improve or promote our cooperative values and principles. Northern Community Bank also share our knowledge and skills to help the credit union movement regularly. We recognise that we are stronger when we cooperate.

We believe co-operative solutions can help to rebuild the economy and benefit the whole community #KeepCooperating

Education, Training and Information- how Northern Community Bank put coop principles into practice

June 30, 2020 1:40 pm Leave a Comment

Coop fortnight – Education, Training and Information

During Co-op Fortnight (22 June to 5 July 2020), we have been looking at the principles that mould our community bank and see how they fit into a plan to channel the positive co-operation many people in the community have been part of during the testing coronavirus period. There have been many inspiring stories which have come out of this current crisis. There are lessons to be learned for the future. We believe if we #KeepCooperating the whole community can benefit.

Northern Community Bank is a financial cooperative providing ethical savings and affordable loan accounts, we have operated throughout the coronavirus pandemic to make sure people in our community have had access to the money they needed.

Education, Training and Information

Co-operatives provide education and training for their members, elected representatives, managers and employees so they can contribute effectively to the development of their co-operatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of co-operation.

What does the 5th principle ‘Education, Training and Information mean to Northern Community Bank?

All the co-operative principles are important however we understand that in order to provide a high quality services to members, firstly our board of directors, management team and staff team need to be equipped with the most up to date training, knowledge, policies and procedures relating to the credit union model.

All members of the board and staff are enrolled on the training suite designed by the largest trade association for UK community banks. The ABCUL Academy incorporates a learning management system, compliance content and training modules specific to British credit unions. Northern Community Bank can access and complete on-line training courses and search for learning opportunities to assist in the growth and development of staff knowledge. The fresh content helps to keep both board and staff members up to date with the latest developments and best practice.

All board and staff members are invited to participate in annual planning and training session, participate with national and regional community bank training sessions, whilst younger members of staff are encourage to join the variety of excellent training opportunities such as the CU Futures programme.

As a community bank we listen to member’s feedback and deliver information on a range of topics through print and digital channels, such as the Northern Community Bank blog, that aims to inform anything from the best way to compare loans, what’s the point of budgeting to the best way to take the stress out of Christmas by saving early. When there are changes to accounts or protections such as the FSCS we get the message to account holder as soon as possible.

We are continually looking at the best ways to communicate with members, whether in branch, on the telephone, through the post or with the introduction of the Nivo app where we invited members to ask questions and get the information they need.

What can I do?

If you need more information regarding your account then please get in touch and the friendly staff team will be happy to help. Keep an eye out on our social media channels, as Facebook and Twitter are regularly updated. Take a look at the Northern Community Bank blog and monthly email with what the community bank is up to.

Finally we work hard to tell the community what we are doing at every opportunity, if you think someone you know could benefit from our services – recommend Northern Community Bank to a friend or neighbour.

We believe if we #KeepCooperating the whole community can benefit.

Main Navigation

Useful Links

Open Additional Account

All Savings Accounts

Long Term Savings

Instant Access

Northern Saver

Fixed Term Savings

Christmas Savings

Dream Saver

Young Saver

Bill Planning

Save the Change

Family Loans

Standard Loans

Car Loans

£500 Family Loan

£300 Starter Loan

£750 Payroll Loan

Holiday Loans

Home Improvement Loan

Wedding Loans

Pet Loans

Christmas Loans