As a Credit Union, the money we lend out belongs to other members in the Credit Union. Due to this, we have a responsibility to manage our members money and lend it out in an ethical way. This is why we must ensure that when we approve a loan, that the borrower has the capacity and ability to meet the repayments over the entire term of the loan.

Where a member cannot evidence the ability to meet their repayments as well as their other financial obligations, we may be unable to lend on the account.

As part of the loan assessment process, we may request a member to supply a full Credit Report which will enable us to see an applicant’s credit history. A member’s credit history with Teachers' Credit Union and other creditors in the past is one of the principal factors that we take into account when deciding on loan applications as it shows their affordability and ability to repay outstanding credit.

When taking out a loan, a member signs a credit agreement. This is a legal document committing a member to repay the loan with interest. If a member’s financial circumstances change and they are unable to meet the terms of the credit agreement, our highly skilled credit team can assist with making arrangements to help the member. If we are unable to make contact with a member, and we are unable to come to an arrangement they may lose their credit union membership and all its benefits, including the ability to access future borrowing, until the original loan and outstanding interest is repaid in full. This may involve taking legal proceedings to recover the outstanding debt.

One of the main factors that Teachers' Credit Union takes into account when assessing a loan application, is the amount of total debt serviced by a member monthly as a percentage of their income. This is known as a Debt to Income Ratio (DTI) If you have a (DTI) ratio which is over 40%, your loan application may need additional assessment.

Where we feel that a members DTI is excessive, we may decline a loan application.

There is nothing illegal about gambling. However, we do have a duty, under regulations, to lend responsibly. If gambling transactions are evident, we will consider whether these transactions are reasonable and responsible. We will particularly look at the frequency of these transactions and the size of the transactions in relation to a member’s income.

Where it becomes evident that gambling transactions are having an impact on a member's ability to maintain current financial commitments, we may decline a loan.