BOROUGH CREDIT UNION

Rent Direct

Merthyr Tydfil Borough Credit Union can collect your Local Housing Allowance on your behalf and pay it to your landlord. this will mean that your Local Housing Allowance cannot go astray and is only used for the purpose of paying your rent, avoiding any problems with your landlord.

How does it work?

To use the scheme, you have to become a member of MTBCU, and your landlord also has to agree to take part.

MTBCU acts as an honest broker between the tenant and landlord protecting the rights of both of them.

Once you have become a member, we open an account for you. Your Local Housing Allowance will be paid directly into your account by the Local Authority, and Merthyr Tydfil Credit Union will transfer the money straight on to your landlord. The purpose of this is to prevent you falling into rent arrears.

As landlords pay the cost of the scheme, there is no charge to tenants.

Why is it good for tenants?

• Tenants have the knowledge and security that their rent is being paid automatically
• They don't get into arrears and avoid facing eviction and being declared intentionally homeless.
• Tenants in dispute with the landlord can request that MTBCU withhold rent payments until the dispute is resolved.
• If there is a dispute between tenant and landlord MTBCU will provide statements for both tenant and landlord stating all of the payments that have been made, certifying this if required.
• Tenants can choose to use the other facilities that credit union members receive including regular savings, low cost loans.

Why is it good for landlords?

• Landlords would be assured that their rent is paid regularly and promptly
• The landlord knows if missing or insufficient rent payments are the responsibility of the tenant or the housing benefit departments
• If the tenant is in dispute with the landlord, they could request that MTBCU withhold the Local Housing Allowance (LHA) until the dispute is resolved. Although MTBCU would not be part of the resolution process, they will ensure that LHA payments are retained until after the dispute is resolved and then appropriately passed on to the landlord.
• If there is a dispute between tenant and landlord relating to the amount and frequency of payments from the Local Authority, MTBCU will provide statements for both tenant and landlord stating all of the payments that have been made, certifying this if required.

Limitations of the scheme

Merthyr Tydfil Credit Union will only transfer monies received to pay your rent. If there are not sufficient funds on your account to pay the rent, Merthyr Tydfil Credit Union will not make up any shortfall.

How to join

When you join the scheme, Merthyr Tydfil Credit Union needs an authorisation from you to make transfers to your landlord.

Leaving the scheme

If you no longer wish the Credit Union to pay your rent to the landlord, you must give us 30days notice that you wish to end this arrangement. The Credit Union will tell the landlord of your decision.