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FEWER THAN 40 credit unions have been affected by new rules limiting how much a member can save.
The new regulations, brought in last year, were heavily criticised by the credit unions who said that they would damage their ability to compete in the market.
The regulations followed the publication of feedback from the Central Bank on Consultation Paper 88.
The process resulted in a rule limiting how much a member could save with credit unions to €100,000.
A modification to the rule allowed account holders already holding €100,000 to keep their accounts.
In a parliamentary response to Fianna Fáil’s Finance spokesperson Michael McGrath, the Minister of Finance Michael Noonan said less than 10% of the country’s 400 credit unions had applied for exemptions under the rules.
I have been informed by the Central Bank that to date less than 10% of the credit unions who held individual members’ savings in excess of €100,000 on 1 January 2016 have submitted applications to retain these individual members’ savings.
McGrath said that the rules were introduced in a “haphazard” way. He said the rules had damaged the reputation of credit unions and called on the Central Bank to come with a plan for the sector.
“The Central Bank solution to the issue was to allow credit unions to apply to keep funds greater than €100,000. The fact that so few have applied seems to indicate that either the criteria or the process itself is very restrictive.
“This is further evidence of the need for an urgent strategy for the future growth and development of the sector.”
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I’m just waiting for my CU to bring out a debit card so I can finally give the 2 fingers to BOI and their expensive incompetence. A drop in the ocean to them I’m sure but it’s the little things :)
Together we stand, divided we fall! I’m sure there’s alot more out there with similar views.
Check out the big switch campaign in the US by Huffington post around time of the bailouts. People switched from banks to CUs as US CUs have debit cards and current accounts. Look at the youtube videos associated with it when people filmed closing their accounts on their phones . The banks were HYSTERICAL even getting security to throw people out rather than close their accounts
Keep the poor man down , wealthy elite can save as much as they want in offshore accounts but we are regulated
I know. Poor people are only able to save 100,000 now.
Damn peasants
The next step will be too close down the Credit Union set up in favour off greedy bank’s. Why will this not surprise me or a lot off people. Money speaks and the Bank’s don’t want the Credit Unions to be able too speak for the little person or family.
The banks will do everything in their power to stall the growth of the Credit Unions as they see them as a threat to their corrupt institution.. Power to the Credit Unions .. The peoples real bank.
Maybe be the case but CU want to be like banks as well by increasing lending powet to mortgages etc
I hope they do but they’ll do it on the basis of profit share through dividends. Much prefer that than the hundreds of thousands I’m spending on interest for my mortgage
Less than 10% have been affected because it’s easier to ask a member to reduce their savings below 100,000 than it is to apply to keep the savings there above 100,000.
Put it in the next nearest CU or two.
That’s if you can, credit unions have to stick to the area they work from (common bond) so you either work in the area or live there. Where in the likes of blanchardstown there is 2 so you can have two accounts there
its cheaper to fly in and out of this country every day instead of actually living here, learnt that from dob and look how well he is doing
anyone wanna share a plane?
That only works if you have a certain political party in your pocket tho.
no just go to court and tell the judge because there is no kitchen in your house it cannot be considered your residence, you are now a tax exile!, then put the kitchen back (they don’t check)
Debit cards will be a reality in a few short months, Banks will try but won’t be able to suppress the explosive growth coming to credit unions…
People feel their money is safe in the credit union and government prefer to see people use banks to prop up the wealthy
These rules are good, the CU was not made for big savers and keeping them in line in terms of reasonable lending amounts. Just look at Newbridge and Rush. Newbridge eas worse than the banks and Rush couldn’t see fraud until almost a million was gone.
I know a lot of people who aee CU members but they have no where near 100k with them, those with that sort of money wouldn’t have many accounts with then.
They should not ve lending excess amounts for moryages etc because the taxpayer picks up the bill when it goes wrong and while the same can be said about the banks they have the ability raise market funds something which CU does not.
Our credit well was ours joined with Gorey credit union we were told there wood b no changes now gone like a bank. Chargefor lodging a cheque, also they now charge for giving you a loan cheque as well, so my thinking is it is gone like de Banks.
What are the rules though. Is it 100000 per member or 100000 per account?
Suspect per account than member.
have your say