In March 2015 the Government announced it would provide funding to help Armed Forces personnel access credit union services.
This funding is being used to establish ‘a payroll deduction’ system which will allow current and former Service personnel in receipt of a military pension, to save with and pay off loans from specific credit unions. Payments will come directly from an individual’s salary or pension at source. Defence Business Services has enabled this process.
Credit unions are financial co-operatives owned and controlled by their members who must have a defined ‘common bond’; in effect they are ethically based, democratically controlled, community owned financial institutions. They offer an alternative to high cost payday lenders and conventional banking in the form of services which meet the needs of their members. Although different credit unions offer different products, the larger ones are able to match banks and building societies with their range of financial instruments.
The MOD has made arrangements for three credit unions to deliver saving facilities and access to safe, affordable loans. The three selected credit unions are Plane Saver Credit Union, London Mutual Credit Union and the Police Credit Union. Due to technical limitations, only these three credit unions are enabled to receive payroll deductions from the MOD pay and pension deliverers.
The three credit unions selected are not endorsed by MOD and financial decisions remain the choice of the individual. Where appropriate, independent financial advice should be sought before entering into any agreement.
Serving personnel wishing to use these facilities can find further information at the link below:
http://joiningforcescu.co.uk/ which contains links to the individual credit union provider websites. You can also use the following links to the individual credit unions:
Plane Saver Credit Union: http://planesavercu.co.uk/
London Mutual Credit Union: http://www.creditunion.co.uk/
Police Credit Union: http://www.policecu.co.uk/
Service personnel are advised to read the literature carefully before engaging in any agreement to ensure that they fully understand their commitment. Any issues with these facilities should be addressed to the appropriate credit union in the first instance. There is further guidance on Credit Unions on the Money Advice Service Website below: