Frequently Asked Questions:
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What is the Central Credit Register?
Central Credit Register
The Central Credit Register has been set up by the Central Bank of Ireland under the Credit Reporting Act 2013.
The Central Credit Register is a national database that will, on request, provide:
- a borrower with an individual credit report detailing their credit agreements;
- a lender with comprehensive information to help with credit assessments; and
- the Central Bank with better insights into national trends in the provision of credit.
The Credit Reporting Act 2013 requires us to process your personal and credit information for the Central Credit Register. From 30 June 2017, we will submit personal information to the Central Credit Register that we may already have about you, like:
- your name;
- date of birth; and
- personal public service number (PPSN) – a very important piece of information for matching.
The Central Credit Register needs this information to make sure it accurately matches your loans, including loans that you may have with other lenders. Producing a full and accurate credit report is one of the main aims of the Central Credit Register. We will also submit credit information each month about your loans, if the loan is for €500 or more.
Your loan information will be stored securely on the Central Credit Register where it will be used to create your credit report. The Central Credit Register will not calculate a score or grade for your credit report. Information will be kept on the Central Credit Register for five years after your loan is paid off.
In early 2018, credit reports will become available from the Central Credit Register. Once available, you may request your report at any time and are entitled to one free report each calendar year.
Lenders may only access your credit report:
- when considering an application for a new loan;
- if you ask to change the terms of a loan; or
- if they are reviewing a loan in arrears.
Employers, landlords, or any other person or entity cannot access your credit report without your written consent.
For more information click on the link a-consumer-guide-to-the-central-credit-register
If you have any further queries contact Tipperary Credit Union on 062 80400
What is the Irish Credit Bureau?
What is the ICB?
The Irish Credit Bureau (ICB) is the principal credit reference agency in Ireland and was established in 1965 by a number of financial institutions. The objectives of ICB are:
- To assist in lowering the cost of credit
- To enable faster decision making in the provision of credit
- Aid in the avoidance of over- indebtedness of its member’s customers.
Over 40 financial institutions, mostly banks, building societies and finance companies are members of ICB. Credit Unions were granted membership in June 2004.
The Board of Directors has a responsibility under Credit Union and consumer credit legislation to safeguard the assets of the Credit Union and to ensure that members do not become over-indebted. This means minimizing bad debts and other costs of credit and ensuring that as much information as possible is obtained to assess a member’s ability to repay a loan.
What information does ICB hold?
- Your name, date of birth and address
- The names of lenders and account numbers of loans you currently hold, or that were active within the last 5 years.
- Repayments made or missed for each month of each loan.
- The failure to clear off any loan.
- Loans that were settled for less than you owed.
- Legal actions your lender took against you.
When you sign a mortgage or loan application, you will be asked to sign a Consent Form. This form gives the lender permission to seek information about your credit history from ICB and to send information about you to the ICB.
What type of lenders send information to the ICB?
Lenders send information about borrowers who have mortgages, car loans, personal loans, credit cards, leasing and hire purchase agreements.
What information is available to the Credit Union from ICB?
Details of current borrowings and loans that have been repaid or closed in the last 5 years for all ICB members are shown in response to an ICB enquiry. Details include the loan amount, category and repayment history. The database also shows “footprints” of enquiries made by the ICB members in the previous 12 months
What information is available to ICB from the Credit Union?
The Credit Union provides the same information to ICB and other ICB members. This does not extend to loans taken out or repayment histories prior to the credit union becoming a member of ICB. However, where a loan incorporates an existing loan(ie. a top-up), the new balance is the figure disclosed to ICB. Confidentiality and disclosure of your personal information is subject to the Data Protection Acts 1988-2003 and the Credit Union act 1997.
Will ICB affect my ability to get a loan?
The main factor in determining whether a loan is granted is your borrowing and repayment history with the Credit Union. In common with other lenders, the Credit Union may request information about your income, employment status, living costs and existing loan repayments to help decide whether you can afford to repay a loan. An ICB enquiry is another source of information relevant to lending decision.
How do I see my credit history?
You can get a copy of your credit history by completing and signing an application form which is sent to the ICB, with a fee of €6, payable by bank draft or postal order only. One form should be completed per person and contain a contact telephone number. Please check the ICB website at www.icb.ie for more details.
How do I apply for a loan?
Loan applications can be made online, by phone or by calling into any of our branches.
How do I repay my loan?
Loan repayments can be made by direct debit, electronic fund transfer, by calling into any of our branches or we can take card payments over the phone.
What is Life Protection Insurance?
What is Loan Protection Insurance?
In Tipperary Credit Union, the outstanding loan balances of eligible members are automatically insured at no direct cost to the member. This means the loan debt will be wiped clean in the event of the members death. Banks and other financial institutions charge a separate insurance premium on top of loan repayments for this service. You can take out a credit union loan in the full confidence that your dependants will not have to pay it off should you die or suffer total and permanent disability for any occupation. Note: Terms and Conditions Apply
Under the basic policy, insurance cover ceases on the member’s 70th birthday. However, Tipperary Credit Union has the “Over 70 Rider” which extends the cover until the members 85th Birthday. Members over 16 years of age who were not eligible for insurance cover (because they were in ill health at the time a loan was granted to them) can be insured up to an amount of €8,000.
- For death All members’ loans (up to age 85) are automatically insured up to €8,000.
- For disability All members’ loans (up to age 60) are automatically insured up to €4,000.
- Loan balances greater than these limits are subject to completing a Member Declaration on the back of the loan application form and/or a Declaration of Health Form. The underwriters have the right to decline or restrict cover for members with serious medical conditions.
In the event of Death
To make a claim please provide Tipperary Credit union with a copy of the Death Certificate. If a Nomination is in place, monies will be paid out as requested in the Nomination.
If a Nomination is not available please provide details of the Solicitor handling the member’s estate and a copy of the Will (if applicable).
Please note just one copy of the Death Certificate is required to claim for all 3 insurance services; Life Savings Insurance, Loan Protection Insurance and Death Benefit Insurance.
In the event of Disability
Claims Forms are available in Tipperary Credit Union. Once filled in please return to Tipperary Credit Union and we will submit your claim on your behalf.
It is important that you keep in contact with your Medical Practitioner to ensure that your claim form is filled in full and in a timely manner.
For further information please contact Tipperary Credit Union on 062 80400
Our Car loan V PCP
How does a PCP work?
A PCP is a type of hire purchase agreement. You don’t own the car until you have made the final repayment. With a PCP, repayment is broken down into three parts:
The deposit – the deposit is typically between 10% and 30% of the value of the car, depending on the finance provider. Your deposit can be paid in cash or if you already own a car, you can trade this in for part or all of the deposit, depending on its value.
Monthly repayments – PCP agreements are usually made for terms between three and five years. PCPs generally have low monthly repayments, which can make them seem more affordable when compared to other forms of finance.
Guaranteed Minimum Future Value (GMFV) – The GMFV is the amount you will have to pay to own the car at the end of the agreement. It is calculated by the finance company and is based on its estimate of the future value of the car at the end of the agreement, e.g. 3 or 5 years. It takes into account such things as, the car you are buying, length of agreement, the condition of the car at the end of the agreement and your annual mileage.
When your agreement ends: At the end of the PCP agreement, there are a number of options depending on whether you want to carry on or end the agreement:
Pay a final payment (the GMFV, also known as a ‘balloon payment’) and keep the car.
Hand the car back. Be aware that if you do opt to hand the car back, while you generally don’t have to pay the dealer anything, you might end up having to pay a penalty if you have not complied with all the terms and conditions. You also will no longer have the car.
Put the car down as the deposit on another car and enter into another PCP agreement. It is important to be aware that the deposit you put down for the first car will not be given back to you if you use the car as a deposit for a new PCP agreement. The equity you have built up in your monthly repayments and the difference of the GMFV is what you put towards the new car. All you have to put towards the new deposit is whatever equity you built up from the first PCP. This equity may be less than the deposit required for the new PCP, so be aware that you might have to top the deposit up. This could amount to a couple of thousand euro.
Example of a typical 0% APR PCP repayment schedule
|Monthly repayments (for 36 months)||€196.83|
|Guaranteed Future Value (final payment)||€7,086|
Comparing a PCP with a personal loan
The main difference between a PCP and a personal loan is that with a personal loan you borrow the money, pay for your car, and own it immediately. With a PCP agreement, you don’t own the car, you are essentially hiring it for an agreed period of time, typically 3-5 years. You only own it when you make the final repayment. This is important because if you were to run into financial difficulty during your PCP agreement, you cannot sell the car to pay off your debt.
How flexible is a PCP?
These agreements are among the least flexible forms of finance. Because the repayments are fixed for the term of the agreement, you usually cannot increase your repayments each month if you wish to do so. If you want to extend the term, you may be charged a rescheduling fee.
What to watch out for
Before you sign up to a PCP make sure you know who is providing you with the finance, that you fully understand the terms and conditions attached and you know what other things you need to look out for such as:
Mileage: At the outset you agree the number of kilometres you are going to clock up over the period of the agreement. If you keep to this, the car will have a GMFV at the end of the agreement. If you exceed the agreed annual mileage you may find that you owe more on the final payment than you think – even if you were to hand the car back it would cost you money. This is often charged at a set fee per kilometre over the agreed estimate.
Half rule: The ‘half rule’ allows you to end a PCP agreement at any time and return your car, but you have to pay half the purchase price. If you have not yet paid half the purchase price you can still return the car but you will owe the difference between the repayments you have made and half the purchase price. If you find yourself in financial difficulty, returning the car using the half rule may be a good option for you because the finance company may decide to repossess the car if repayments are not met.
Small print: At the beginning of the contract you will agree to a number of different terms and conditions. For instance, the cap on the number of miles/kilometres you are allowed to clock up over the period of the agreement. They may also request that you commit to certain car servicing requirements. Always read the small print before you sign up.
Finance options: When comparing finance options, take the time to compare the total amount payable on a personal loan (cost of credit) with the PCP cost (the deposit, plus monthly repayments and final payment). Use our personal loan cost comparison to help you. Make sure you also compare the terms and conditions of each option.
Fees and charges: Always enquire about any additional fees and charges. You are entitled to a list of all additional charges and fees, so ask the garage for this before you sign up to any agreement. For instance, ask if there is any documentation fee for setting up the agreement, missed repayments fees or repossession charges.
How is interest charged?
If interest is charged, the rate on PCPs will vary depending on the finance company and the car you are financing. Interest is calculated at a fixed rate on the total amount you borrow for each year of the agreement. If you pay off the agreement earlier than planned, this type of agreement will often work out more expensive than if you had taken out a variable rate personal loan. Also, the deposit you pay at the beginning of the contract will have an impact on the amount of interest you pay.
Can your car be repossessed?
With a PCP, your car can be repossessed if the terms of the agreement are broken, for example, by missing repayments. If you have paid less than one-third of the purchase price, the car finance company can take back your car without taking legal action against you. If you have paid more than one-third of the purchase price, a lender cannot repossess the car without taking legal action. In addition the car cannot be repossessed from your home, regardless of how much money you’ve paid back.
If your car is repossessed, the finance company will generally sell the car and the money goes towards the outstanding debt, but you will still have to make repayments until the entire debt is paid off.
PCP and your credit record
As with other types of credit, when you take out a hire purchase agreement, your lender will send details of the repayments you make to a credit-reference agency, such as the Irish Credit Bureau (ICB). Find out more about what information is shown in your credit history.
It is worthwhile checking the registration documents of a second hand car to make sure that it is not already owned by a finance company, in which case the person trying to sell you the car does not actually own it and therefore does not have the right to sell it to you.
Note: Our loans have a variable rate which means that the rate, and your loan repayments, can go up or down during the term of your loan.