Clockwise.coop Review

Based on checking the website clockwise.coop, it appears to be a credit union offering various financial services.

However, a strict review, especially from an Islamic ethical perspective, raises significant concerns due to its reliance on conventional banking practices that involve interest riba. While the website highlights its “not-for-profit” status and community focus, the fundamental nature of its loan and savings products, which are structured around interest, renders them impermissible in Islam.

Therefore, this service cannot be recommended for those seeking ethically compliant financial solutions.

Overall Review Summary:

• Website Legitimacy: Appears legitimate in terms of being a registered UK credit union FRN213498, IP00280C.
• Ethical Compliance Islamic: Highly Discouraged. The core services involve interest-based loans and savings, which are strictly forbidden haram in Islam.
• Transparency: Good, with clear regulatory information, terms and conditions, and contact details.
• User-Friendliness: The website is well-organized and easy to navigate.
• Security: Claims eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme.
• Community Focus: Emphasizes reinvesting money into the local community and helping financially excluded individuals. This is a positive aspect, but does not override the fundamental ethical issue of interest.

Clockwise.coop presents itself as a community-focused financial cooperative, offering a range of services from loans and savings to current accounts.

They highlight their “not-for-profit” status, aiming to reinvest money into the local community and provide “fair and affordable credit.” While these intentions sound noble, the underlying mechanism of their financial products, particularly loans and savings, inherently involves interest.

In Islam, any transaction involving interest riba is strictly prohibited because it is seen as an exploitative and unjust way of accumulating wealth, creating economic imbalance, and fostering greed rather than genuine productivity and shared prosperity.

The concept of earning money purely from money, without tangible risk or effort in productive enterprise, goes against Islamic economic principles.

Therefore, despite their stated community benefits and regulatory compliance within the UK, Clockwise.coop’s services are fundamentally incompatible with Islamic financial ethics.

It is crucial for individuals to seek alternatives that adhere to Sharia principles, ensuring their financial dealings are free from interest and align with broader ethical values.

Here are some better alternatives for ethical financial management, focusing on products and services that align with Islamic principles avoiding interest-based loans, conventional insurance, etc.:

Best Ethical Financial Alternatives Non-Edible Products:

• Islamic Banking & Finance Services

  

  • Key Features: Offers Sharia-compliant mortgages Murabaha, Ijarah, investment accounts Mudarabah, Musharakah, and ethical savings that avoid interest. Focuses on asset-backed financing, risk-sharing, and ethical investments.
  • Price: Varies significantly based on the service and institution. generally involves fees or profit-sharing arrangements instead of interest.
  • Pros: Fully Sharia-compliant, promotes ethical economic activity, avoids riba.
  • Cons: Fewer mainstream options available, may have higher initial setup costs for some products, limited physical branch presence in some areas.

• Ethical Investment Funds

  • Key Features: Invests in companies that meet specific ethical criteria, often including environmental, social, and governance ESG factors, and excluding industries like alcohol, tobacco, gambling, and conventional finance. Many funds specifically adhere to Sharia principles.
  • Price: Management fees typically range from 0.5% to 2% of assets under management.
  • Pros: Allows participation in the market while adhering to ethical guidelines, potential for long-term growth, supports responsible businesses.
  • Cons: Returns may vary, ethical screening can limit investment universe, requires careful research to ensure genuine compliance.

• Community Development Financial Institutions CDFI Non-Interest Based

  • Key Features: Provides financial services to underserved communities, often prioritizing social impact over profit. While many CDFIs still use interest, some offer grant-based programs or microfinance models that can be structured without interest.
  • Price: Varies, some services may be grant-funded or have minimal fees.
  • Pros: Directly supports community growth and economic empowerment, often helps individuals and small businesses that struggle to access traditional finance.
  • Cons: Not all CDFIs are Sharia-compliant, requires thorough vetting to find interest-free options, availability depends on location.

• Peer-to-Peer Lending Sharia-Compliant Platforms

  • Key Features: Connects borrowers and lenders directly, with Sharia-compliant platforms structuring transactions as profit-sharing Mudarabah or direct investment in assets, avoiding interest.
  • Price: Fees charged for matching and platform services, typically a percentage of the transaction or profit.
  • Pros: Potential for higher returns for lenders than traditional savings, provides alternative financing for borrowers, direct and transparent.
  • Cons: Still a developing niche for Sharia-compliant options, higher risk than traditional savings, liquidity can be an issue for lenders.

• Halal Gold & Silver Investment Platforms

  • Key Features: Allows investment in physical gold and silver, often stored in secure vaults, adhering to Sharia rules that require immediate possession or transfer of ownership for monetary assets.
  • Price: Storage fees, transaction fees, and spreads on purchase/sale.
  • Pros: A traditional store of value, Sharia-compliant wealth preservation, hedges against inflation.
  • Cons: No income generation, subject to market price fluctuations, storage fees can eat into returns.

• Takaful Islamic Insurance

  • Key Features: A cooperative system where participants contribute to a common fund, and payouts are made from this fund to members who suffer a loss, based on mutual assistance and shared responsibility, avoiding conventional interest and uncertainty.
  • Price: Contributions premiums vary based on coverage.
  • Pros: Sharia-compliant alternative to conventional insurance, promotes mutual support and solidarity.
  • Cons: Fewer providers compared to conventional insurance, may not cover every type of risk offered by conventional policies.

• Microfinance Institutions Interest-Free Models

  • Key Features: Provides small loans and financial services to low-income individuals or groups, often without collateral. Some institutions operate on an interest-free basis, focusing on social impact and empowering entrepreneurship.
  • Price: Often relies on grants or philanthropic funding, with minimal administrative fees, or structured as profit-sharing.
  • Pros: Crucial for poverty alleviation and economic development, empowers marginalized communities, aligns with charity and social justice principles.
  • Cons: Limited availability and funding for strictly interest-free models, focuses on very small loan amounts, not suitable for larger financial needs.

---

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Clockwise.coop Review & First Look: An Ethical Conundrum

Based on looking at the website clockwise.coop, it positions itself as a community-centric credit union, emphasizing its “not-for-profit” model and commitment to local financial well-being.

At first glance, the homepage presents a clean, user-friendly interface with clear calls to action for loans, savings, and current accounts.

They highlight features like “Fair and affordable credit” and “Safe & Ethical Savings,” aiming to attract individuals in Leicester, Coventry, Nottingham, and surrounding areas.

However, for those of us who prioritize ethical financial practices, particularly from an Islamic perspective, the details require a far deeper dive than the surface suggests.

Understanding Credit Unions and Their Core Model

Credit unions, at their heart, are financial cooperatives owned by their members, unlike traditional banks that are typically owned by shareholders.

This structure is often touted as more democratic and community-focused, with profits or surpluses supposedly reinvested into the institution or returned to members through better rates or lower fees.

Clockwise.coop certainly leans into this narrative, stating that “Money is reinvested into the local community” and they are “not-for-profit.”

• Member-Owned Structure: A key differentiator. Members are both customers and owners.
• Community Focus: Often target specific geographic areas or affiliations, aiming to serve their local community’s financial needs.
• Not-for-Profit Ethos: Surplus earnings are typically used to reduce loan rates, increase savings dividends, or expand services, rather than being distributed to external shareholders.

The Inescapable Issue of Interest Riba

Despite the community-oriented language, the fundamental operational model of Clockwise.coop, like virtually all conventional credit unions and banks, relies on interest.

They offer “loans” which inherently involve charging interest on borrowed money and “savings” accounts which typically offer interest or dividends on deposits. From an Islamic financial perspective, this immediately flags a significant issue.

• Loans with Interest: Whether termed “affordable” or “fair,” any loan that requires the borrower to pay back more than the principal amount as a condition of the loan is considered riba interest. Riba is explicitly prohibited in Islam, regardless of the rate or the lender’s “not-for-profit” status.
  • The Quranic Prohibition: The Quran in multiple verses e.g., Al-Baqarah 2:275, 2:278-279 condemns riba, equating it to war against Allah and His Messenger.
  • Economic Impact: Islamic scholars argue that riba leads to wealth concentration, discourages productive investment, and encourages exploitation.
• Interest-Bearing Savings: Similarly, earning a fixed or variable return on savings purely from depositing money, without engaging in a legitimate trade or investment with shared risk, falls under the category of riba. Islamic finance encourages profit-sharing and real asset-backed investments.

Clockwise.coop’s Compliance and Regulations

The website proudly displays its regulatory credentials, which is crucial for any financial institution. Clockwise Credit Union Limited Reg. No. Bebuyby.com Review

FRN213498 is authorized by the Prudential Regulation Authority PRA and regulated by both the Financial Conduct Authority FCA and the PRA.

They are also members of the Financial Services Compensation Scheme FSCS, protecting eligible deposits up to £85,000. This certainly lends an air of trustworthiness from a conventional regulatory standpoint.

• PRA and FCA Regulation: These are the primary financial regulators in the UK, ensuring stability and consumer protection.
• FSCS Protection: Provides a safety net for depositors, which is a significant advantage for members.
• Registered Office: Clearly states its registered office at 1 St Nicholas Place, Leicester, LE1 5LB, and registration as an industrial and provident society IP00280C.

However, while these regulations ensure compliance with UK law, they do not address the ethical compatibility with Islamic financial principles.

The core business model, despite its regulation, remains problematic for a Muslim consumer.

The Concept of “Social Value” and Ethical Investing

Clockwise.coop highlights generating “over £55 million in social value in 2023,” claiming that “For every £1 invested into Clockwise Credit Union £16 of social value was created.” This focus on social impact is admirable and aligns with broader ethical investing trends that seek positive societal outcomes beyond financial returns.

They also mention supporting initiatives like “Stop Loan Sharks,” which is a commendable effort to combat predatory lending.

• Social Value Metrics: Measuring social value is a complex but growing field, aiming to quantify the broader impact of an organization’s activities on society.
• Ethical Concerns vs. Islamic Ethics: While conventional ethical investing often excludes industries like weapons, tobacco, and gambling, Islamic finance adds a layer of scrutiny that specifically prohibits interest-based transactions and certain forms of speculation. This distinction is crucial. “social value” does not automatically equate to Sharia compliance.

Conclusion on Ethical Review

In summary, Clockwise.coop, based on its website, appears to be a well-regulated and community-focused credit union within the conventional financial system.

It offers accessible loans and savings, emphasizing its not-for-profit mission and local reinvestment.

However, its reliance on interest riba as a fundamental component of its operations makes it incompatible with Islamic financial principles.

For individuals seeking Sharia-compliant financial services, Clockwise.coop is not an appropriate choice, regardless of its social impact initiatives or regulatory compliance. Imarketing.courses Review

Adhering to the prohibition of riba is a foundational aspect of Islamic financial ethics, guiding Muslims towards alternatives that are free from interest and promote real economic activity and shared risk.

Clockwise.coop’s Operational Model: A Deeper Dive into Lending and Savings

Clockwise.coop, as a credit union, operates on a model distinct from traditional banks, yet still firmly within the conventional financial framework that relies on interest.

Their services are designed to meet the everyday financial needs of their members, from small personal loans to saving accounts and current accounts.

Understanding the nuances of their operational model is crucial, especially when evaluating its ethical implications.

Diverse Loan Products and Interest Application

Clockwise.coop offers a range of loan products, from small “Family Loans” up to £500, specifically for those receiving child benefit to larger loans up to £15,000. They emphasize “fast decisions online, no hidden fees or penalties,” and claim to “consider all applicants, regardless of circumstances.” This inclusive approach is often a hallmark of credit unions, aiming to serve individuals who might be excluded by traditional banks.

• Loan Categories:
  • Family Loan: Targeted at specific demographics, offering quick access to smaller funds.
  • General Personal Loans: Ranging up to £15,000, catering to various financial needs.
• Interest as Core Mechanism: Despite the language of “fair and affordable credit,” these loans, by definition, involve the borrower paying back more than the principal amount. This additional amount is interest riba, which is explicitly prohibited in Islamic finance.
  • The Problem of Riba: Riba distorts economic fairness by allowing wealth to be generated from mere time value of money, rather than from productive enterprise or shared risk. It can lead to debt spirals and increased inequality, which are outcomes Islamic finance seeks to prevent.
  • Conventional vs. Islamic Lending: Conventional lending creates a debt obligation where the lender is guaranteed a return regardless of the borrower’s success or failure. Islamic finance, conversely, encourages risk-sharing models like Musharakah or Mudarabah where both parties share the profit and loss from an enterprise, or asset-backed sales like Murabaha where a marked-up price is fixed upfront, but without an ongoing interest charge.

Savings Accounts and Dividends

Clockwise.coop also offers “flexible, easy access savings accounts” designed to help members manage their money better.

In a conventional credit union, savings accounts typically accrue dividends or interest, which are essentially payments made to depositors for the use of their money.

• Dividend Payments: These payments, while often presented as a share of the credit union’s surplus, functionally operate like interest. They are a predetermined or expected return on capital simply for parking it, without direct involvement in a real, productive venture where profit and loss are shared.
  • Sharia Compliance for Savings: From an Islamic perspective, legitimate savings options would involve profit-sharing investment accounts Mudarabah where returns are not guaranteed but are based on the actual profits of permissible investments, or Qard Hasan benevolent loans where no return is expected.
• “Prizesaver Summer Sizzler Super Draw”: This is a promotional feature where saving enters members into a draw to win £1000. While intended to encourage saving, any element of a draw or lottery inherently introduces an element of gharar excessive uncertainty or speculation and potentially maysir gambling if the prize is dependent on chance without clear productive activity. This further complicates its ethical standing in Islamic finance.

Current Accounts and Day-to-Day Banking

Beyond loans and savings, Clockwise.coop provides current accounts for day-to-day spending, allowing members to pay bills, set up direct debits, and receive salary payments.

These are standard banking services necessary for modern life.

• Functionality: Essential for managing daily finances, similar to a checking account in the US.
• Ethical Consideration: While the functionality of a current account itself is permissible, the institution offering it needs to be Sharia-compliant in its overall operations. If the credit union generates its primary income from interest-based activities, then even using their current account indirectly supports a system based on riba. Muslims are encouraged to use Sharia-compliant financial institutions for all their banking needs if available.

Payroll Partners and Community Reach

Clockwise.coop engages with “Payroll Partners,” allowing employees to save or repay loans directly from their salaries. Julzbeads.com Review

This provides a convenient and consistent way for members to manage their finances.

Their stated service areas include Leicester, Leicestershire, Rutland, Coventry, Warwickshire, Nottingham, and Nottinghamshire, highlighting their strong local focus.

• Convenience: Payroll deduction simplifies saving and loan repayment, promoting financial discipline.
• Local Impact: By focusing on specific regions, they aim to build stronger community ties and serve local needs.
• Mergers: The merger with Notts & Lincs Credit Union indicates an expansion of their reach and member base, suggesting growth within the credit union sector.

In conclusion, while Clockwise.coop offers a commendable community-oriented approach and essential financial services, its reliance on interest both in lending and saving makes it unsuitable for Muslims adhering to Islamic financial ethics.

The underlying mechanisms of their products are in direct conflict with the prohibition of riba, making it critical for individuals to seek genuinely Sharia-compliant alternatives for their financial needs.

Clockwise.coop Pros & Cons: A Balanced Yet Critical View

While some aspects might be seen as advantageous in the mainstream, they become significant drawbacks when viewed through the lens of Sharia compliance.

Clockwise.coop’s “Pros” from a conventional viewpoint, but with caveats

From a general consumer perspective, Clockwise.coop offers several features that are often considered positive.

However, it’s crucial to remember that these “pros” do not override the fundamental ethical issues for a Muslim consumer.

• Community-Focused and Not-for-Profit: They explicitly state being a “not-for-profit organisation” where “Money is reinvested into the local community.” This contrasts with shareholder-driven banks and aims to serve members’ best interests.
  • Benefit: Potentially more favorable rates or services compared to profit-maximizing institutions.
  • Caveat: The “not-for-profit” status doesn’t negate the use of interest.
• Accessible Lending: They consider “all applicants, regardless of circumstances,” which is beneficial for individuals who might struggle to secure loans from traditional banks due to poor credit history or low income.
  • Benefit: Financial inclusion for underserved communities.
  • Caveat: The loans are still interest-based riba, which is prohibited.
• Regulated and Protected: Being authorized by the PRA and regulated by the FCA and PRA, with deposits protected by the FSCS up to £85,000, offers a high level of security and consumer confidence within the UK regulatory framework.
  • Benefit: Peace of mind regarding the safety of deposits.
  • Caveat: Regulatory compliance does not equate to Sharia compliance.
• User-Friendly Online Services: They offer online applications, account access 24/7, and a mobile app, providing convenience for managing finances.
  • Benefit: Easy access and management of accounts.
  • Caveat: These are merely tools. the underlying financial products remain problematic.
• Financial Literacy Initiatives: The “NEWS & BLOGS” section features articles like “How to Teach Kids About Money” and “Spring Clean Your Finances,” indicating an effort to empower members with financial knowledge.
  • Benefit: Promotes financial well-being and education.
  • Caveat: The education still operates within a conventional, interest-based paradigm.

Clockwise.coop’s “Cons” especially from an Islamic ethical viewpoint

These are the critical drawbacks that make Clockwise.coop unsuitable for a Muslim seeking Sharia-compliant financial services.

• Reliance on Riba Interest: This is the primary and most significant con. All loan products involve charging interest, and savings accounts likely provide interest or dividends. Riba is strictly forbidden in Islam, making all such transactions impermissible.
  • Impact: Engaging in interest-based transactions is considered a major sin in Islam, affecting one’s spiritual and financial integrity.
• Lack of Sharia Compliance: There is no indication that Clockwise.coop operates under Islamic financial principles, which would involve profit-and-loss sharing, asset-backed financing, and avoidance of gharar excessive uncertainty and maysir gambling.
  • Impact: Cannot provide a viable financial solution for Muslims.
• Prize Draws Prizesaver: The “Prizesaver Summer Sizzler Super Draw” introduces elements of maysir gambling and gharar uncertainty as a condition for winning, even if framed as encouraging saving. This is generally not permissible in Islam.
  • Impact: Further undermines ethical acceptability.
• Limited Geographical Reach: While a “pro” for locals, their services are limited to specific regions of the UK, meaning many individuals may not be eligible to join.
  • Impact: Not a universal solution.
• Indirect Support of Impermissible System: Even if one were to use only the current account which itself is functionally neutral, by being a member of a credit union whose core business relies on riba, one is indirectly supporting and strengthening an impermissible financial system.

The focus should be on discouraging engagement with such institutions and guiding individuals towards genuine Sharia-compliant alternatives.

Clockwise.coop Alternatives: Navigating Towards Ethical Finance

Given the significant ethical concerns regarding Clockwise.coop’s reliance on interest, exploring viable and Sharia-compliant alternatives is not just a preference but a necessity for Muslims. Book-tour-egypt.com Review

The good news is that the Islamic finance industry, though still growing, offers a range of products and institutions designed to meet modern financial needs without compromising on ethical principles.

The Imperative of Interest-Free Halal Finance

The core principle guiding alternatives is the avoidance of riba interest. Islamic finance is built on principles of justice, equity, risk-sharing, and ethical investment in real economic activities. This translates into specific types of contracts and products:

• Profit-Sharing Mudarabah & Musharakah: Instead of interest on loans, returns are based on actual profits from investments, with losses shared proportionally.
• Asset-Backed Finance Murabaha, Ijarah: Financing is tied to real assets, involving a transparent sale or lease transaction rather than a pure loan with interest.
• Takaful Islamic Insurance: A cooperative system of mutual assistance rather than conventional risk transfer with interest-based investments.
• Zakat & Sadaqah: Encouragement of charitable giving and wealth purification, which contrasts with wealth accumulation through exploitative means.

Islamic Banking Institutions

These are dedicated banks that operate entirely on Sharia-compliant principles.

While their presence might be less widespread than conventional banks, they are the most direct alternative for comprehensive financial services.

• Key Features:
  • Offer Sharia-compliant savings accounts Mudarabah, Qard Hasan.
  • Provide home financing Murabaha, Ijarah, Diminishing Musharakah and personal financing Murabaha.
  • Current accounts Qard or Wadi’ah that are non-interest bearing.
  • Ethical investment products that avoid prohibited sectors e.g., alcohol, gambling, conventional finance.
• Examples in the UK/Globally:
  • Al Rayan Bank UK: One of the largest Islamic banks in the UK, offering a full suite of personal and commercial banking products.
  • Gatehouse Bank UK: Focuses on Sharia-compliant savings and property finance.
  • Islamic Bank of Britain now Al Rayan Bank: Pioneered Islamic banking in the UK.
  • Other global players: Such as Dubai Islamic Bank, Kuwait Finance House, CIMB Islamic Malaysia, and various ethical finance co-operatives emerging worldwide.
• Considerations: Still a niche market, so services might not be as varied or digitally advanced as major conventional banks, but they are rapidly catching up.

Sharia-Compliant Investment Funds

For individuals looking to save and invest ethically, dedicated Islamic or ethical investment funds are excellent alternatives to interest-bearing savings accounts.

*   Invest in companies that meet specific Sharia criteria, screening out industries like alcohol, gambling, conventional banking, armaments, and pornography.
*   Often undergo rigorous Sharia auditing by independent boards.
*   Can include equities, Sukuk Islamic bonds, and real estate funds.

• Examples: Various asset management firms offer Sharia-compliant funds e.g., Wahed Invest, Franklin Templeton Islamic Funds.
• Benefits: Allows for wealth growth while adhering to ethical principles, supports socially responsible businesses.

Cooperative & Community-Based Financial Models Re-evaluated

While Clockwise.coop is a credit union, the concept of cooperatives can be adapted to be Sharia-compliant if structured correctly, focusing on Qard Hasan benevolent loans or genuine profit-sharing rather than interest.

• Mutual Aid Societies: Groups that pool resources to help members in times of need, often structured as interest-free contributions and disbursements.
• Microfinance Institutions Interest-Free: Some non-profits provide micro-loans to entrepreneurs without interest, aiming for social impact and economic empowerment.

Ethical Savings and Investment Platforms

Beyond traditional banks, a growing number of digital platforms are emerging that offer ethical ways to save and invest.

• Crowdfunding Sharia-Compliant: Platforms that allow individuals to invest in businesses or projects on a profit-sharing basis, avoiding debt with interest.
• Gold and Silver Investments: Direct investment in physical gold and silver, which are considered valid stores of value in Islam, provided the transaction adheres to rules of immediate possession. Platforms for physical gold storage or Islamic fintech apps can facilitate this.

Practical Steps for Choosing an Alternative:

1. Verify Sharia Compliance: Always look for certification from reputable Sharia boards or scholars. Don’t just rely on marketing claims like “ethical” or “community-focused.”
2. Understand the Product Structure: Ask detailed questions about how profits are generated and distributed for savings, or how financing is structured for loans. It should be based on real assets, trade, or shared risk, not on time-value of money.
3. Check Regulatory Oversight: Ensure the institution is regulated by a competent financial authority in its jurisdiction, providing a layer of protection.
4. Assess Accessibility and Features: Evaluate if the alternative offers the necessary services e.g., online banking, mobile app, ATM access and meets your daily financial needs.

By proactively seeking out these Sharia-compliant alternatives, individuals can manage their finances in a way that aligns with their faith and contributes to a more just and equitable economic system, moving away from interest-based models like Clockwise.coop.

Understanding Clockwise.coop’s Pricing and Fee Structure

Delving into the specifics of Clockwise.coop’s pricing reveals typical credit union practices, where the cost of borrowing is expressed as an Annual Percentage Rate APR for loans, and returns on savings are usually referred to as dividends.

While the website emphasizes “no hidden fees or penalties,” it’s crucial for consumers, especially those with ethical considerations, to understand how these costs and returns are generated. Himmaleh.org Review

Loan Pricing: The APR and Its Implications

Clockwise.coop offers loans ranging from £50 up to £15,000. For any conventional loan product, the cost is primarily determined by the interest rate, expressed as an APR.

The APR reflects the total cost of borrowing over a year, including the interest rate and any mandatory fees.

• Variable APRs: The website doesn’t explicitly state a universal APR, as it likely varies based on the loan amount, term, and the applicant’s creditworthiness though they mention considering “all circumstances”. Common practice for credit unions is to offer rates that are competitive with or lower than high-street banks, especially for smaller loans or those to underserved demographics.
• “Fair and Affordable Credit”: This phrase implies competitive rates. However, regardless of how “fair” or “affordable” an interest rate is, the fundamental fact remains that it is interest riba.
  • Islamic Stance: From an Islamic perspective, even a 0.01% interest rate is prohibited, as the prohibition is on the principle of interest, not just excessive interest. Therefore, any APR, no matter how low, makes the loan impermissible.
• No Hidden Fees or Penalties: This claim is a consumer-friendly feature, meaning borrowers won’t be surprised by charges for early repayment or late fees beyond what’s clearly stated in the loan agreement.
  • Conventional Benefit: Transparency and predictability of costs.
  • Islamic Caveat: While transparency is good, it doesn’t legitimize the interest component.

Savings Account Returns: Dividends

For savings accounts, credit unions typically pay “dividends” to their members, rather than “interest.” These dividends are a share of the credit union’s surplus profits, distributed to savers.

• Dividend Rate: The specific dividend rate for Clockwise.coop’s flexible, easy access savings accounts is not explicitly stated on the homepage. These rates usually fluctuate based on the credit union’s financial performance and market conditions.
• Functional Equivalence to Interest: While termed “dividends,” in most credit union models, these payments function very similarly to interest. They are a return on capital simply for holding it in an account, without the saver directly participating in the profit and loss of a specific productive venture.
  • Islamic Stance: This type of return, where capital is guaranteed a periodic payment regardless of actual profit or loss from a real economic activity, falls under the definition of riba. Islamic finance encourages profit-sharing schemes Mudarabah where returns are not guaranteed but are based on the actual earnings of ethical investments, and losses are shared proportionally.
• “Prizesaver Summer Sizzler Super Draw”: This is a lottery-style promotion tied to saving, offering a chance to win £1000. While designed to incentivize saving, the element of chance and the potential for a large, arbitrary win based on a deposit introduces maysir gambling and gharar uncertainty, making it problematic in Islamic finance.

Other Potential Fees

While Clockwise.coop states “no hidden fees,” certain services might involve standard charges common in the banking industry, such as:

• Current Account Fees: Some current accounts might have monthly maintenance fees, although many credit unions offer fee-free basic accounts. Fees for bounced checks or overdrafts are also common.
• Transaction Fees: While often waived, some specific transactions e.g., international transfers might incur charges.
• ATM Fees: If using ATMs outside of their network, third-party ATM operators might charge fees.

Summary of Pricing from an Islamic Perspective

Clockwise.coop’s pricing model, which relies on APR for loans and dividends for savings, is firmly rooted in conventional finance.

While they might offer competitive rates and transparent fee structures, the fundamental reliance on interest riba for both borrowing and saving makes their products impermissible from an Islamic ethical standpoint.

The “Prizesaver” scheme further exacerbates this by introducing elements of gambling. For Muslims, the cost isn’t just financial.

It’s a matter of adherence to religious principles that prohibit interest in all its forms.

How to Cancel Clockwise.coop Subscription/Account: Navigating Your Exit

For those who may have engaged with Clockwise.coop or similar conventional financial institutions and now wish to transition to Sharia-compliant alternatives, understanding the cancellation process is crucial.

While Clockwise.coop doesn’t operate on a “subscription” model in the common sense, closing accounts loans, savings, or current accounts is a standard procedure. Samsung.com Review

Cancelling a Savings Account

Closing a savings account with Clockwise.coop should be relatively straightforward, especially for “easy access” accounts.

• Steps for Savings Account Closure:
  1. Access Online Account/App: Log in to your Clockwise online account or mobile app. Look for options related to account management or closure.
  2. Contact Member Services: If online closure isn’t available, contact their Member Services Team.
     • Phone: Call 0330 1755792 Monday to Friday, 9:30 am to 4:00 pm.
     • Email: Send an email to [email protected]. Clearly state your intention to close the savings account and provide your account details for verification.
  3. Transfer Funds: Ensure all funds are transferred out of the account to a linked bank account or withdrawn.
  4. Confirm Closure: Request a confirmation of account closure for your records.
• Important Considerations:
  • Notice Period: While “easy access” accounts typically have no notice period, it’s always good to confirm.
  • Dividend Payout: Inquire about any accrued dividends and how they will be paid out upon closure. From an Islamic perspective, any interest-based dividend should be purified given to charity.
  • Linked Accounts: Ensure no direct debits or standing orders are linked to this savings account before closing.

Cancelling a Current Account

Closing a current account requires more careful planning to avoid disruptions to your regular payments.

• Steps for Current Account Closure:
  1. Update Direct Debits & Standing Orders: This is the most critical step. Ensure all incoming payments salary, benefits and outgoing payments bills, subscriptions are redirected to a new, Sharia-compliant current account.
     • Action: Contact employers, utility providers, and other service providers to update your banking details.
  2. Transfer Remaining Funds: Move any remaining balance to your new account.
  3. Contact Member Services: Similar to savings accounts, contact Clockwise.coop’s Member Services via phone or email to request closure.
  4. Destroy Cards/Cheque Books: Cut up your debit card and any unused cheque books.
  5. Confirm Closure: Request a formal confirmation of account closure.
  • Old Debts: Ensure no outstanding overdrafts or charges on the account.
  • Credit History: Closing accounts can sometimes temporarily impact credit scores, especially if it’s your oldest account, though the impact is generally minor if other accounts are managed well.

Repaying and Closing a Loan Account

Repaying a loan and then closing the account is generally a more straightforward process once the full amount, including all interest, has been settled.

• Steps for Loan Account Closure:
  1. Obtain Settlement Figure: Contact Clockwise.coop to get the exact final settlement figure for your loan, which includes the remaining principal and any accrued interest up to the payment date.
  2. Make Final Payment: Make the payment for the full settlement amount.
  3. Request Confirmation of Zero Balance: Once paid, request written confirmation that the loan has been fully settled and the account closed, and that they will inform credit reference agencies accordingly.
  • Early Repayment: While Clockwise.coop states “no hidden fees or penalties,” confirm there are no charges for early repayment of the loan principal.
  • Islamic Perspective on Loan Repayment: While the loan itself is impermissible due to interest, once a borrower has entered into such an agreement, they are generally obligated to fulfill the terms, including paying the agreed-upon interest, to avoid greater harm or legal issues. However, one should sincerely repent and avoid such dealings in the future. Any “profit” gained from interest-bearing savings or loans should be purified by giving it to charity, without expecting reward.

Transitioning away from interest-based financial services is a significant step towards financial integrity from an Islamic perspective.

Planning and careful execution of the cancellation process will ensure a smooth transition to Sharia-compliant alternatives.

Clockwise.coop vs. Sharia-Compliant Alternatives: A Fundamental Clash

Comparing Clockwise.coop with Sharia-compliant financial alternatives isn’t a matter of feature-for-feature equivalence. it’s a fundamental clash of underlying principles.

Clockwise.coop, like all conventional credit unions, operates within a system that inherently involves interest riba. Sharia-compliant alternatives, on the other hand, are meticulously designed to avoid riba and adhere to broader Islamic ethical guidelines.

This difference creates a chasm that cannot be bridged by mere features or community focus.

Core Business Model: Interest vs. Ethical Profit-Sharing

Clockwise.coop’s Model:

• Foundation: Built on conventional lending and borrowing with interest.
• Loans: Borrowers pay interest APR on the money they borrow.
• Savings: Depositors earn “dividends” which function as interest on their deposits.
• Source of Funds: Primarily from deposits and capital that is then lent out at a higher rate of interest.
• Risk: Lenders the credit union bear minimal risk beyond default, as the return interest is guaranteed.
• Ethical Stance Conventional: Emphasizes “fair,” “affordable” credit, and community reinvestment, viewing interest as a legitimate cost of money.
• Ethical Stance Islamic: Prohibited. The very mechanism of interest riba is fundamentally impermissible, regardless of the rate or perceived fairness.

Sharia-Compliant Alternatives e.g., Islamic Banks, Takaful Providers: Officeportal.io Review

• Foundation: Built on principles of justice, risk-sharing, and ethical investment in real economic activities.
• Financing instead of loans:
  • Murabaha Cost-Plus Finance: The institution purchases an asset and sells it to the client at a pre-agreed marked-up price, payable in installments. No interest is charged.
  • Ijarah Leasing: The institution leases an asset to the client for a fixed rental, with ownership possibly transferring at the end.
  • Musharakah/Mudarabah Partnership/Profit-Sharing: The institution and client share in the profits and losses of a joint venture or investment.
• Savings/Investment Accounts:
  • Mudarabah Accounts: Savers deposit funds as an investment, and returns are based on the actual profits generated from Sharia-compliant investments made by the institution. Losses are shared proportionally if not due to negligence.
  • Qard Hasan Benevolent Loan: A deposit where no return is expected, functioning like a current account.
• Source of Funds: Primarily from ethical investments, profit-sharing ventures, and non-interest-bearing deposits.
• Risk: Both parties institution and client/investor share in the commercial risk.
• Ethical Stance Islamic: Permissible. Adheres strictly to the prohibition of riba, gambling maysir, and excessive uncertainty gharar, and invests only in ethically permissible sectors.

Feature Comparison: What’s Different?

Feature	Clockwise.coop Conventional	Sharia-Compliant Alternatives Islamic
Loans/Financing	Interest-based personal loans, family loans APR	Asset-backed financing Murabaha, Ijarah, Partnership Musharakah
Savings/Investing	Interest-bearing dividends on savings, prize draws	Profit-sharing investment accounts Mudarabah, non-profit current accounts
Current Accounts	Standard current account may indirectly support interest	Interest-free current accounts Qard/Wadi’ah
Insurance	Not explicitly mentioned as a core product	Takaful mutual cooperative insurance
Ethical Focus	Community reinvestment, “fair” rates, not-for-profit ethos	Strict adherence to Sharia no riba, gambling, illicit industries
Regulation	FCA, PRA regulated UK	Regulated by financial authorities + Sharia Supervisory Board approval
Risk Bearing	Primarily lender minimal risk, guaranteed interest	Shared risk in profit-loss ventures
Availability	Localized UK specific regions	Growing globally, more options in Muslim-majority countries

Why the Distinction Matters for Muslims

For a Muslim, the choice between Clockwise.coop and a Sharia-compliant alternative is not about finding the “better deal” in terms of rates, but about upholding religious principles.

Engaging with interest-based transactions, even if seemingly beneficial or community-oriented, is considered a grave matter in Islam.

• Spiritual Imperative: Avoiding riba is a direct command from Allah and a fundamental aspect of Islamic economic justice.
• Ethical Consistency: Choosing Sharia-compliant finance ensures one’s financial dealings align with broader ethical values of fairness, transparency, and social responsibility without exploitation.
• Long-Term Impact: Supporting Islamic finance helps build an alternative, ethical financial ecosystem that can provide genuine, permissible solutions for the Muslim community and potentially for others seeking ethical finance.

In conclusion, while Clockwise.coop may offer accessible services within the conventional UK financial system, its interest-based model fundamentally conflicts with Islamic ethical principles.

For Muslims, the only truly acceptable alternatives are those institutions and products that rigorously adhere to Sharia law, offering genuine profit-sharing, asset-backed transactions, and the complete avoidance of riba.

FAQ

Is Clockwise.coop a legitimate organization?

Yes, based on the website, Clockwise.coop appears to be a legitimate credit union in the UK.

It states that it is authorized by the Prudential Regulation Authority PRA and regulated by the Financial Conduct Authority FCA and the PRA, with deposits protected by the Financial Services Compensation Scheme FSCS up to £85,000.

What services does Clockwise.coop offer?

Clockwise.coop offers a range of financial services including personal loans from £50 up to £15,000, savings accounts flexible, easy access, and current accounts for day-to-day spending.

They also have a specific “Family Loan” product for those receiving child benefits.

Is Clockwise.coop Sharia-compliant?

No, Clockwise.coop is not Sharia-compliant. Its core business model, like conventional credit unions, involves charging interest on loans and providing returns dividends on savings, both of which fall under the category of riba interest which is prohibited in Islam.

Why is interest riba prohibited in Islam?

Interest riba is prohibited in Islam because it is considered an unjust and exploitative form of wealth accumulation. Themasteryinstitute.com Review

It allows wealth to be generated from money itself without productive effort, tangible risk, or shared responsibility, leading to economic inequality and discouraging real economic growth based on trade and investment.

Can I use Clockwise.coop if I am a Muslim?

No, it is highly discouraged for Muslims to use Clockwise.coop or any conventional financial institution that operates on interest-based loans and savings.

Adhering to the prohibition of riba is a fundamental tenet of Islamic financial ethics.

What are the main ethical concerns with Clockwise.coop from an Islamic perspective?

The main ethical concerns are its reliance on interest riba for both lending and saving products. Additionally, promotional elements like the “Prizesaver Summer Sizzler Super Draw” introduce elements of gambling maysir and excessive uncertainty gharar, which are also impermissible in Islam.

What are some Sharia-compliant alternatives to Clockwise.coop for loans?

Instead of interest-based loans, Sharia-compliant alternatives include financing based on asset-backed transactions such as Murabaha cost-plus sale or Ijarah leasing, or profit-sharing partnerships like Musharakah and Mudarabah, offered by Islamic banks or ethical finance institutions.

What are some Sharia-compliant alternatives for savings?

For savings, Sharia-compliant alternatives include Mudarabah profit-sharing investment accounts offered by Islamic banks, where returns are based on actual profits from permissible investments, or Qard Hasan benevolent loan accounts where no return is expected.

Is the “not-for-profit” status of Clockwise.coop relevant to Islamic ethics?

While the “not-for-profit” status and community focus of Clockwise.coop are positive from a general social perspective, they do not negate the fundamental issue of interest riba. The prohibition of riba in Islam applies regardless of the institution’s profit motive or charitable intentions.

Does Clockwise.coop offer any Sharia-compliant products?

Based on the homepage text, there is no indication that Clockwise.coop offers any specific Sharia-compliant products or operates under Islamic financial principles.

All listed products appear to be conventional interest-based services.

What is the Financial Services Compensation Scheme FSCS protection mentioned by Clockwise.coop?

The FSCS is a UK scheme that protects customers’ money if a financial firm fails. Sourpuffshop.com Review

Clockwise.coop members’ eligible deposits are protected up to £85,000 per person.

This is a standard regulatory protection for conventional financial institutions in the UK.

How do I close my Clockwise.coop savings account?

You can typically close a Clockwise.coop savings account by accessing your online account/app or by contacting their Member Services Team via phone 0330 1755792 or email [email protected]. Ensure all funds are transferred out and request confirmation of closure.

How do I close my Clockwise.coop current account?

To close a Clockwise.coop current account, first redirect all incoming and outgoing payments direct debits, standing orders, salary to a new account.

Then, transfer any remaining funds, and contact their Member Services to request closure.

Remember to destroy your debit card and cheque book.

What should I do if I have an existing loan with Clockwise.coop?

If you have an existing interest-based loan, you are generally obligated to fulfill the terms of the contract, including paying the agreed-upon interest, to avoid legal issues or greater harm.

However, you should sincerely repent and commit to avoiding such transactions in the future.

Can I earn a prize from “Prizesaver Summer Sizzler Super Draw” ethically?

No, participation in prize draws or lotteries like the “Prizesaver Summer Sizzler Super Draw” is generally not permissible in Islam because it involves elements of gambling maysir and excessive uncertainty gharar, where winning is based purely on chance rather than productive effort.

Where can I find out more about Islamic banking in the UK?

You can find more information about Islamic banking in the UK by searching for “Islamic banks UK” or visiting websites of recognized Islamic financial institutions like Al Rayan Bank or Gatehouse Bank. Mcdougalls.shop Review

Resources on Islamic finance principles from reputable organizations are also helpful.

Are there any fees for early loan repayment with Clockwise.coop?

The Clockwise.coop website states “no hidden fees or penalties” which generally implies no charges for early loan repayment.

However, it’s always best to confirm directly with their Member Services when settling a loan.

What geographic areas does Clockwise.coop serve?

Clockwise.coop primarily serves individuals living or working in Leicester, Leicestershire, Rutland, Coventry, Warwickshire, Nottingham, and Nottinghamshire in the UK.

What is the difference between a credit union and a traditional bank from an Islamic perspective?

From an Islamic perspective, there is no fundamental difference in permissibility for most conventional credit unions and traditional banks, as both operate on interest-based models riba. While credit unions are member-owned and often emphasize community, this structure does not negate the prohibition of interest.

Does Clockwise.coop have a mobile app?

Yes, the Clockwise.coop website mentions that members can check balances, make transfers, and print statements using their “mobile app.”