WHAT IS A CREDIT UNION PRIORITY RENT ACCOUNT?
6Towns offers an account which helps you to make sure your rent is always paid first. We call this a Priority Account.
HOW DOES IT WORK?
To use this scheme, both tenant and landlord have to agree to take part. A housing benefit (HB) claimant will tell the local authority that they want their benefit paid into their 6Towns account. Once they have set this up, the authority will pay the benefit into the account, where it will be sent directly to the landlord’s account. This means that the claimant has less direct access to the benefit, and they can be sure that it is used for rent, helping them to budget for other living costs.
Once a tenant has become a member of the credit union, we will open a Priority Bill Payments account. Local Housing Allowances (LHA) will then be paid directly into the credit union account by the Local Authority, before transferring the money direct to your landlord.
BENEFITS OF USING THE RENT DIRECT SCHEME FOR TENANTS
Tenants can be assured that their rent is being paid on time each month, helping them to avoid rental arrears, eviction and even homelessness.
If there is a dispute between the tenant and the landlord, we can provide clear statements of all payments made.
Tenants can benefit from all the other services available to 6 Towns members.
BENEFITS OF USING THE RENT DIRECT SCHEME FOR LANDLORDS
It safeguards rent
If you feel that your tenant may be struggling with their finances, help support them now by introducing them to Priority Bill Payments account. This will help them to prioritise the Housing Benefit for rent before they go into arrears. Landlords can be assured that their rent is paid regularly and promptly
It’s easy to arrange
Once a tenant is 6Towns Credit Union member, setting up a rent account and nominating that the Housing Benefit is paid into that account is easy to arrange, compared with the process for applying for Direct Payment with a Local Authority.
It makes business sense
Even with a small account fee, operating a Credit Union rent account makes business sense and assures you that rents will be received regularly and on time.
For any payments you require, we charge per tenant, per transfer, our charge is £5.00
The transfer charge will be deducted at source from the tenants housing benefit and we will send you the remaining funds via bank transfer. You will also receive remittance advice detailing the payment and charges.
If you are a tenant or landlord and would like further details you can call us on 0121 553 3110.