Checking your identity

If you live in Southwark, Lambeth, Westminster or Camden, we can check your identity automatically and you will be asked to give us your consent for this during the application process. If our system fails to identify you for any reason, such as that you are not on the electoral register, haven’t been living at your current address for more than 3 years, etc., we will refer your application to one of our staff to deal with during office hours.

If you work in Southwark, Lambeth, Westminster or Camden, we have most of the employers’ names and addresses in our system and will cross reference against them in order to ascertain where you work. If we are unable to find your employer’s details in our system we will contact you by email to ask for proof of employment. We can only do this during office hours.


Your creditworthiness

In order for us to decide if you can afford to pay the loan, we will carry out a credit check. London Mutual Credit Union reserves the right to carry out a credit search on you when you apply for any loan facility from us. This will leave a foot print on your credit file.

If your online application is refused, and if you have previously defaulted on some of your loans/credit cards, or you have County Court Judgments against you, we will refer your application to one of our staff. We will still consider giving you a small loan, but the application cannot be processed instantly but will be processed during office hours.


Data protection and your information

In accordance with Data Protection Act 2018, and the General Data Protection Regulation 2018, the London Mutual Credit Union Ltd will ensure that your personal data is processed lawfully, fairly and transparently. Data will be collected for specified, explicit and legitimate purposes and not processed in a manner incompatible with those purposes. The personal data that we hold will be accurate and - where necessary be kept up to date. London Mutual Credit Union Ltd will not pass your personal data on to any third parties except where processing by a third party is necessary for the performance of a task or a contract. We will use your data to process your application and to help manage your account(s) and any service you use. Your personal details will be treated confidentially and will only be shared with other agencies for the purposes of credit referencing, fraud prevention and debt recovery. Please read our full Privacy Policy at creditunion.co.uk/privacy-policy or ask us for a copy in branch.

If you apply for a credit product, such as an unsecured personal loan, we will give data to and get data back from specific credit reference agencies. In some cases we may need to carry out a credit search, bank verification search and an Identification check. These checks require the London Mutual Credit Union to pass on necessary information from your application to credit reference agencies, to receive confirmation or other information necessary to make a decision on your application. When we carry out a credit search, the credit reference agency keeps a record of it against your name. This can have an effect on your ability to obtain credit elsewhere for a short period of time.

Before we can open an account for you, we may check your details with fraud prevention agencies, and may make searches at credit reference agencies who will supply us with information, including information from the electoral register, for the purposes of verifying your identity. The credit reference agencies will record details of the search whether or not the application proceeds, but this is not a credit check and will not be seen or used by lenders to assess your ability to obtain credit.

For more information about how Credit Reference Agencies may use your information, please review the Credit Reference Agency Information Notice.

The personal information we have collected from you will be shared with fraud prevention agencies who will use it to prevent fraud and money-laundering and to verify your identity. If fraud is detected, you could be refused certain services, finance, or employment. For further details of how your information will be used by us and these fraud prevention agencies, and your data protection rights, please visit creditunion.co.uk or ask in branch for the full Fair Processing Notice.


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Distance Marketing Directive Policy (DMD)

Cancellation rights

Under the DMD the member will have the right to cancel their membership with the credit union, or their loan agreement without penalty within 14 days of the day of the conclusion of the contract, or from when they received the contractual terms and conditions. You should make it clear to your members how they go about canceling any agreements concluded at a distance. This should normally be done in writing, and should be stated within your policy and procedure for distance transactions.

However if a member needed to borrow within 14 days, this would be deemed to be an acceptance of membership. The credit union will not charge interest accrued on the loan before the member cancels.

It is the normal practices that the new members pay £5 when they apply to join the credit union. If they then decided to take up the DMD option and cancel their membership, the credit union will refund £3 only as £2 will be payable as an administration fee.

If a member does decide to exercise their cancellation rights, the credit union must return, no later than 30 days after the date, any money paid to the credit union.

The credit union reserve rights to request that the members pay for any services provided up to the date of cancellation, provided it does not amount to a penalty.

Exemptions

1) The DMD will only apply where there is ‘an organized distance sales or service-provision scheme run by the supplier’. Therefore the DMD will only apply where the credit union has set up facilities to enable members to deal with the credit union at a distance. If the credit union normally operates purely on a face to face basis then the rules will not apply. A one-off transaction dealt with at a distance will not be required to comply with the rules. (CRED 11.4.1 G).

2) Where the member is recruited by telephone they can give you consent to receive a more limited range of information before the conclusion of the contract. However full information, in a durable medium must be provided immediately after the conclusion of the distance contract.

Workplace Contacts

If an employer simply makes information and application packs available to employees, any resulting contract would be a distance one and would have to meet the DMD requirements regarding disclosure and cancellation. However, if for example a work place rep met face to face with potential members to talk about credit union membership, or terms and conditions of loans this would not constitute a distance contract.

Joint Accounts

Where there is a joint account and only one of the members is physically present at the time of opening the account, this does not constitute a distance contract, as it is not entered into exclusively by distance means.

Our Obligation

London Mutual Credit Union will ensure that Distance Marketing Leaflet is included with the welcome letter, which we sent to all new members when they join.

For new members, a one off Membership Fee of £2 will be deducted from their share account towards administration charges prior to the refund.

If a member does decide to exercise their cancellation rights, the credit union must return, no later than 30 days after the date, any money paid to the credit union. This could include their joining fee.

The credit union reserves the right to request that the members pay for any services provided up to the date of cancellation provided it does not amount to a penalty.

The credit union will not charge interest accrued on the loan before the member cancels.


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