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POLICIES TABLE

              1. Christmas Club Policy
              2. Dividends Policy
              3. Withdrawal Policy
              4. General Policy
              5. Loan Policy
              6. Auto Loan Policy

 

1. CHRISTMAS CLUB POLICY

A Christmas club is available through payroll deduction starting each year in October. There can only be one deduction through the company, which means your current deduction may have to be increased to include the amount of your Christmas club deduction. This can only be changed by signing a payroll deduction card at the Credit Union.

All existing accounts from the previous year that were not closed out during the year will be automatically rolled over for the new year at the same amount, unless changed. Any changes in the amount, cancellations or new account must be made by October 31st of the new Club year.

The credit union allows ONE withdrawal from the Christmas club account without closing the account. Any Christmas club accounts that are closed out before September 25th will be charged a $15.00 cancellation fee.

Dividends are paid on Christmas club accounts. Rates are available upon request.

*The Credit Union can hold your Christmas club check and apply it to any delinquent loan balance.

2. DIVIDEND POLICY

Dividends are based on Credit Union earnings and are subject to change. Current rates and APY are available on request. Dividends are paid on a scale in the following tier categories effective January 23, 2023:

  • $100.00 to $4,999.00      0.50%
  • $5,000.00 to $9,999.00      0.75%
  • $10,000.00 and over           2%

Dividends are paid quarterly on the 1st of January, April, July, and October. Statements are mailed to each member quarterly (for no fee). KEEP THESE STATEMENTS!! They are the records of all transactions on your account and show the dividends earned on savings and interest paid on loans. This information will be needed when you file your Federal Income Tax returns. Any member requesting re-prints of quarterly statements will be charged $15.00 for each quarterly statement requested.

3. WITHDRAWAL POLICY

Withdrawals under $100.00 cannot be mailed.

If a check is lost in the mail due to your negligence in informing the Credit Union of an address change, a fee will be charged for a stop payment as per bank charge.

Any withdrawal over $50,000.00 will take 2 (two) business days. No exceptions.

Credit Union is open Monday through Friday for transactions (unless it’s a holiday).

The Credit Union does not print checks after 3pm Monday through Friday.

4. GENERAL POLICY  (STRICTLY ENFORCED)

To become a member you must sign a membership card and a payroll deduction card at the Credit Union office. You must also have two forms of ID (passport, work identification card, drivers license, social security card) when opening up an account. All accounts must keep a minimum balance of $100.00 at all times.You can make deposits directly to your account in addition to the payroll deduction.

The company allows you to select any amount in $5.00 increments to be deducted weekly from your paycheck. All changes must be made in person at the credit union except members residing out of state.

If any member causes a loss to the Credit Union, the Credit Union will deny any future membership to that member (Strictly Enforced).

Credit Disability Insurance is optional. If Credit Disability Insurance coverage is elected it will be in addition to the loan amount requested and will be included in the amount financed.

5. LOAN POLICY

To All Members:

 

Due to sound investment and safe lending policies, our Credit Union can pass along to its

Members, benefits, and advantages that the banking industry, in general, cannot.

 

  • FICO scores and Debt Ratio will be used to determine interest rate on all loans except fully secured loans.

INTEREST RATES

LOAN POLICY
  • 6.5%, 7.5%, 12.5%,14.5%, or 17.5%
 Based on individual applications, for unsecured loans.
  • 5.5%
 For loans fully secured by shares.
  • 7.5%
 Student loans (1-year loan)

 

LOANS CANNOT BE REFINANCED MORE THAN TWICE PER YEAR, AND ONLY WHEN 25% OF THE ORIGINAL LOAN HAS BEEN PAID OFF; providing you are qualified based on loan application requirements.

 

Loan applications are taken Monday through Friday from 9am to 3pm.

 

LOAN APPLICATION & APPROVAL POLICIES

 

APPLICANTS MUST (STRICTLY ENFORCED):

 

  1. Be a member in good standing. (A member who has caused the credit union a loss is not a member in good standing.)
  2. New credit union members/accounts must wait thirty (30) days before applying for a loan.
  3. Re-opened credit union accounts must wait two (2) weeks before applying for a loan.
  4. Have sufficient dollar amount, at time of application, to secure amount of loan applied for, plus $100 for membership.
  5. Income verification required. Most current check stub (no disability, worker’s comp, or vacation checks accepted). Only regular hours are acceptable. Overtime will not be calculated in the debt-to-income ratio. Bank statements are acceptable only to show proof of child support income.
  6. Driver’s license (Non-expired), State ID, or US Passport.

 

LOAN APPLICATION PROCEDURES

  1. The debt that the member owes will be taken from the credit report and including any rent payments, and any outstanding loans with Division 819 Credit Union, as well as any civil judgments (example: payment plans or garnishments).
  2. The formula for determining total monthly income is as follows:

 

Hourly Rate * Regular Weekly Hours * 52 / 12

 

Exception: Pension and Social Security are already paid monthly. Therefore, the gross amounts will be added to total monthly income.

  1. Debt-to-Income-Ratio Worksheet will include new loan payment amount for new and refinanced loans.
  2. Current notarized letters and/ or lease agreements may be required to show proof of rent/mortgage or auto payments. (Rent receipts are not acceptable).

 

* The Division 819 Transit Employees Credit Union is an equal opportunity lender and prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance.

 

Experian

An Experian credit report with a FICO 08 must be ran for every application.  All active debt including debt that is late will be added to the debt-to-income ratio worksheet. The credit union will not count deferred education payments, charge offs or collections as active debt. Any derogatory information on report must be explained in full (STRICTLY ENFORCED).

 

DEBT RATIO   CREDIT SCORE
LOW RISK UP TO 25% +20 POINTS
MEDIUM RISK 26% – 35% NO CHANGE
HIGH RISK 36% – 45% -20 POINTS
GREATER THAN 45% DENIED  

 

 

CREDIT SCORE INTEREST RATE AMOUNT AVAILABLE
More than 740  6.5% 100%
700 – 739  7.5% 100%
630 – 699 12.5% 100%
551 – 629 14.5% 75%
500-550 17.5% 50%
Below 500 Declined DECLINED

*On all loans of $5,000.00 or more, credit scores of 551-629 will only be allowed 75% of the loan amount.

*On all loans of $5,000.00 or more, credit scores of 500-550 will only be allowed 50% of the loan amount.

 

  1. For any civil judgment over $250, we must have receipt of payments in full or the credit union will pay with loan proceeds. If any arrangements have been made with a creditor to pay any of the above and has been paid for at least 6 months consecutively, this will be acceptable.

 

2.Anyone without a FICO score will be subject to the following procedures:

A. Debt to Income Ratio

B.  Three (3) or more collection accounts, the interest rate on the loan will be 17.5%.

C. If a collection account has been settled and is still showing on the credit report a letter of payoff will be required.

 

DEBT RATIO PERCENTAGE NO SCORE
LOW RISK UP TO 25% 12.5%
MEDIUM RISK 26%-35% 14.5%
HIGH RISK 36%-45% 17.5%
GREATER THAN 45% DECLINED  

3.All loan applications are not guaranteed to be approved due to the years of service with Local 819 members.  Credit history is a major factor in the approval process of all loans.

4. Any member who becomes eligible for a loan cannot have any outstanding collection accounts more than three thousand dollars ($3000.00).

5. Any member who becomes eligible for a loan and has five (5) or more collection accounts must pay collection accounts down to four (4) with the proceeds from the loan or out of pocket prior to receiving loan. Any additional outstanding collection accounts cannot exceed three thousand dollars ($3000.00).

STUDENT LOANS

  1. Interest rate for student loans is 7.5%.
  2. Tuition statement from school required at time of application with address of school and student id number.
  3. No security is required for student loans.
  4. Loan payment will be made payable to the Department of Education, directly to the institution, or other financial institution.
  5. Maximum Student Loan amount is $5000.00.
  6. Student loans can be used to pay any educational loan on their credit report.

 

HOLIDAY LOANS

  1. Holiday loans are accepted between November 1st and the last Friday before Christmas each year.
  2. No security is required for Holiday Loans.
  3. Maximum holiday loan is $2,500.00.
  4. Holiday loans have a 12-month term.

 

Credit reports are required for all loans except for those fully secured by shares.  These

reports are obtained through Experian and your account will be charged $5.00 at the time

of application.

Members are eligible for a loan after 90 days of service with NJ Transit. 

LOAN SCHEDULE

  

$500.00 to $999.00 $50.00 Secured plus $100.00 membership
$1,000.00 to $1,999.00 $100.00 Secured plus $100.00 membership
$2,000.00 to $2,999.00 $200.00 Secured plus $100.00 membership
$3,000.00 to $3,999.00 $300.00 Secured plus $100.00 membership
$4,000.00 to $4,999.00 $500.00 Secured plus $100.00 membership
$5,000.00 to $10,000.00 $1000.00 Secured plus $100.00 membership
$10,001.00 to $15,000.00 $1500.00 Secured plus $100.00 membership

 

90 days up to 1 year Up to $1,000.00
2 years of service Up to $3,000.00
3 to 4 years of service Up to $5,000.00
5 to 9 years of service Up to $10,000.00
10 or more years of service Up to $15,000.00

 

 

SCHEDULED LOAN PAYMENTS

 

$500.00 TO $1,999.00 12-month term
$2,000.00 to $3,999.00 24-month term
$4,000.00 to $5,999.00 36-month term
$6,000.00 to $10,000.00 48-month term
$10,001.00 to $15,000.00 60-month term

 

All loan payments are due on the 15th of every month.  Refinanced loans scheduled payments are due by the 15th of either the month of the refinance or the 15th of the following month (or whichever comes first). New loan payments are due by the following month on the 15th.

 

New members of the Local 819 ATU can join the Credit Union to pay their Union initiation fee.  The payroll deduction will be $25.00 a week.

 

The maximum loan amount is $15,000.00 (plus CDI if elected).

 

Years of service for loan qualifications for non-Local 819 Amalgamated Transit Union Members will begin upon the date of joining the Credit Union.

DELINQUENT LOANS

If a member pays off all debt that they have incurred with the credit union (including interest and charged off loans), then they will be a member in good standing and able to apply for future loans with the credit union.

(See Collection Policy)

 

*The Credit Union can hold your Christmas Club check and security deposit to apply it to any delinquent loan balance.

 

YOU ARE RESPONSIBLE FOR NOTIFYING THE CREDIT UNION IF:

 

YOUR ADDRESS CHANGES

YOUR NAME CHANGES

YOUR BENEFICIARY CHANGES

YOUR WORK LOCATION CHANGES

YOUR TELEPHONE NUMBER CHANGES

YOU ARE OUT SICK OVER 30 DAYS AND HAVE A LOAN

YOU NO LONGER WORK FOR THE COMPANY

 

BANKRUPTCIES

  1. If a Bankruptcy comes up on a member’s credit report it must have a status as of “Discharged”.
  2. If a bankruptcy comes up on a member’s credit report with a status of “Dismissed” or “Filed” the loan will be denied.
  3. If a bankruptcy comes up on a member’s credit report with a status of “Dismissed” or “Filed” and the member would like to dispute the bankruptcy in order to be approved for the loan, the member must get a letter from the court system stating that the bankruptcy has been “Discharged”. The letter from the court must show the matching docket number from the credit report.

6. AUTOMOBILE & MOTORCYCLE LOAN POLICY

***All loans are subject to credit approval***

EMPLOYMENT REQUIREMENT

  1. MINIMUM 6 MONTHS ON PRESENT JOB UP TO $20,000.00
  2. ONE(1) YEARS OR MORE ON PRESENT JOB UP TO $40,000.00
  3. EMPLOYMENT HISTORY SUBJECT TO VERIFICATION.

SECURITY REQUIREMENT

  1. TITLE WITH CREDIT UNION LISTED AS LIEN HOLDER
  2. PROOF OF INSURANCE NAMING DIVISION 819 TRANSIT EMPLOYEES CREDIT UNION AS “LOSS PAYEE”
  3. NO VEHICLE IS TO BE IN POSSESSION UNTIL ALL REQUIREMENTS ARE MET, LOAN IS APPROVED, AND CREDIT UNION HAS WRITTEN A CHECK MADE PAYABLE TO THE DEALER.
  4. NO LOAN SHALL BE PROCESSED UNTIL ALL REQUIREMENTS HAVE BEEN MET BY MEMBER.

LOAN LIMITATIONS

  1. NEW CARS / M.C
    1. LOAN LIMIT IS 100% OF LIST PRICE
      INCLUDING SALES TAX, PLATES, ECT.
      NOT TO EXCEED $40,000.00
    2. INTEREST RATE IS BASED ON CREDIT SCORE AS FOLLOWS:
      ▪ 5.5% PER ANNUM (FICO SCORE 700 AND ABOVE)
      ▪ 6% PER ANNUM (FICO SCORE 600-699)
      ▪ 6.5% PER ANNUM (FICO SCORE 500-599)
      ▪ 8.5%, 9%, OR 9.5% PER ANNUM (NO SCORE, Dependent on debt- toincome ratio)

FICO SCORES BELOW 500 DECLINED

ALL NEW CAR LOANS ARE FOR 5 YEARS (60 MONTHS).

  1. USED AUTOS ONLY
    1. LOAN LIMIT IS 100% OF N.A.D.A BOOK VALUE, INCLUDING SALES TAX, PLATES, ETC NOT TO EXCEED $40,000.00 AND AUTO MUST NOT BE MORE THAN 5 YEARS OLD
    2. INTEREST RATE IS BASED ON CREDIT SCORE AS FOLLOWS:
      ▪ 6.5% PER ANNUM (FICO SCORE 700 AND ABOVE)
      ▪ 7% PER ANNUM (FICO SCORE 600-699)
      ▪ 7.5% PER ANNUM (FICO SCORE 500-599)
      ▪ 9.5%, 10%, OR 10.5% PER ANNUM (NO SCORE, Dependent on debt- to income ratio)

FICO SCORES BELOW 500 DECLINED

ALL USED CAR LOANS ARE FOR 5 YEARS (60 MONTHS).
Auto loans cannot be refinanced

LOAN APPLICATION

  1. NEW AUTO / M.C.
    1. SAME PROCEDURE AS FOR ANY OTHER LOAN
    2. MUST OBTAIN YEAR, MAKE, MODEL, SERIAL NUMBER, PRICE, AND SPECIAL EQUIPMENT
      EITHER FROM THE SALES CONTRACT OR DIRECTLY FROM THE DEALER
    3. IF INFORMATION IS OBTAINED FROM DEALER, NOTE DEALERSHIP NAME, SALESMAN NAME
      AND TELEPHONE NUMBER
  2. USED AUTOS ONLY
    1. SAME AS 2A ABOVE IF SALE IS MADE BY DEALER

PERFECTING THE LIEN

  1. THE LIEN MUST BE PERFECTED BY HAVING THE CREDIT UNION LISTED AS A LIEN HOLDER ON THE TITLE
  2. THE CREDIT UNION MUST RETAIN THE ORIGINAL TITLE UNTIL LOAN IS PAID OFF.

INSURANCE COVERAGE

  1. COMPREHENSIVE
    1. POLICY MUST COVER COLLISION, FIRE, THEFT, AND VANDALISM
    2. POLICY MUST SHOW THE CREDIT UNION AS LOSS PAYEE
  2. PROOF OF INSURANCE
    1. THE ACTUAL POLICY, OR A LETTER FROM THE INSURANCE BROKER GUARANTEEING THE COMPREHENSIVE COVERAGE (SHOWING THE CREDIT UNION AS LIENHOLDER, AND THE POLICY PERIOD), OR A RECEIPT FOR THE PAYMENT OF THE PREMIUM, MUST BE IN POSSESSION OF THE CREDIT UNION BEFORE ISSUING A CHECK FOR THE LOAN PROCEEDS.
    2. FAILURE TO MAINTAIN INSURANCE CONSTITUTES A DEFAULT ALLOWING THE CREDIT UNION TO REPOSSESS THE AUTO OR M.C.

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