Credit Union Act 1997
Interest on loans.
38.— (1) A credit union may charge interest on loans made to its members under section 35 subject to the following conditions—
( a) the interest on a loan shall not at any time exceed one per cent. per month on the amount of the loan outstanding at that time;
( b) the interest on a loan shall in every case include all the charges made by the credit union in making the loan;
( c) the rate of interest charged on any class of loans granted at a particular time shall be the same for all loans of the class.
F61 [ (2) If a credit union knowingly charges or accepts interest on a loan at a rate greater than that permitted under this section —
( a ) all the interest agreed to be paid by the member shall be deemed to have been waived by the credit union; and
( b ) any interest paid on the loan shall be recoverable summarily by the member (or his personal representative) as a simple contract debt. ]