OPEN - ESDS

cO-OP SOCIETY -
COVENANT
CREDIT CANE -
(SEE ALSO BUDGET/
OPTION ACCOUNTS &
CHAFGE CARDS)
CRSDIT SALE -
CREDIT TRADER -
CREDIT TSANSFER -
By bsing a member of a Co-op society and buying goods from
the Co-op, a person earns a dividend. The more goo& that
are bought, the greater the dividend. PrOfitS made by the
Society are paid bsck to members on a proportional basis,
depending on the amount of dividend earned. This type of
society is different from a Co-op bank.
Under a deed of covsnant, a person can agree to Uke ~
series of payments to an organisation or individual. The
recipients of the payments can claim bsck from Inland
Revsnue any tax paid by the payer on their income,
covering the smount paid.
Eg, Barclay card, Access, American Express, Diners Club.
Any one over 18 can apply for a credit card. A person
issued with a card can purchase goods and sertices, on
credit, from a variety of shops and organisations which
accept the card. Any number of goods and ser vices can be
purchased, up to the individual’ a credit limit set by the
credit card company. Each month a detailed statement is
sent to the cardholder showing the cost of the goods and
where they were purchased. If the whole of the account is
paid off within a specified period, no interest is
charged. The cardholder nomt always pay off a minimum
proportion of the amount owing, usua 1lY S5 or 5%,
whiche ver is the greater. Interest is charged on the
remaining amount.
The exceptions to this system are Diners Club and American
Express, who do not have a credit limit. With American
Express, the account must always be paid in full at the
end of the account period.
Plastic cards issued by shops for their budget, option or
monthly accounts ARS NOT CRSDIT CARDS IN THE S- SENSE AS
BARCLAYCASD ETC.
Credit Sale agreements are usually taken out for the
purchase of smaller consumer durables (eg radios, cameras,
tape recorders) . The agreemsnt normally covers nine
months and the borrowed nwney is repaid to the shop, with
the first payment serving as a deposit. Goods purchased
by Credit Sale are the property of the purchaser as soon
as they are acquired. Sometimes, no interest is charged
on this type of agreement.
tiese are commonly knain as ‘t.allymen’, ‘bagmen’ or, in
Scotland, *Scotch drapers’ . Credit traders call on
customers, show semplea, and, if items are purchased, then
recall at regular intervals to collect money. They trade
usually in drapery and clothing for women and children,
but some deal in furniture, carpets and men’s clothing.
A credit transfer is a msans whereby an amount of money is
transferred from one account to another on instruction and
without writing a cheque. A transfer can take place
between two different people or organisations, or bstween
different accounts of one person, eg current to ,deposit
account. Where a person transfers money from one account
to the other, both of which are their own, this is not
considered to be expenditure.
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