If you don't work for an organisation which offers salary deduction, you may be asked to arrange to repay your loan via direct debit instead.
A direct debit enables you to make your repayments from a bank or building society account you hold elsewhere. Once it is set up, the payment happens automatically, so there's no need to worry about missing or forgetting repayments.
How to set up a direct debit
We're in the process of developing an online service for this, but in the meantime, you'll need to complete a paper form to do this. The form can be returned by post or email.
- Download and complete the direct debit form here
- Decide how much you'd like to pay in each month, and on which date.
- The amount needs to be at least the amount specified on your loan agreement, to ensure there is enough to cover your repayments.
- Anything left over after your loan repayment will go into your Credit Union savings account. Many members choose to pay a little bit extra, so they build up a little savings pot at the same time as they repay their loan.
- Usually, you'll want to choose the date you receive your salary/wages
- Provide the details of the bank or building society account the money will come from.
- Under 'reference', write in your credit union membership number. To receive a reminder of your membership number, text memnumber to 60060, and you'll receive an instant response.
- Return the form to firstname.lastname@example.org or by post to
'FAO Loans Department, London Mutual Credit Union, 4 Heaton Rd, London, SE153TH'