Credit Union refusal to release funds to nominee

[Demac98]

My father died recently, leaving me as his nominee to receive his savings in the Credit Union.
The Credit Union is refusing to release the funds to me, as I have an outstanding debt to the Credit Union.
They say they are entitled to offset the monies against my debt.
Can anyone please provide guidance on the legal basis for they doing this?
Thank you.

 

[Dr Strangelove]

I have an outstanding debt

Is this a normal loan that you are paying off on time?

Or is it a loan in arrears?

 

[Peanuts20]

Yes, they potentially can offset savings against any outstanding loan in arrears. All banks have the right to do this. Why would you not pay back the debt?

There are limits on what can be transferred as part of the nomination process, €27k if my memory is correct

 

[ClubMan]

There are limits on what can be transferred as part of the nomination process, €27k if my memory is correct

Yes.

For You. Not Profit. - The Irish League of Credit Unions

Credit Union

www.creditunion.ie

What is the maximum amount that can pass through the nomination process?

You may nominate a person(s) of choice to receive your property presently up to a maximum value of €27,000* in Republic of Ireland or £20,000 in Northern Ireland. Any amount in excess of €27,000/£20,000 will form part of your estate.

* Increase to €27,000 from €23,000 from 22 February 2024 by statutory instrument

 

[ClubMan]

Can anyone please provide guidance on the legal basis for they doing this?

This perhaps?

Credit Union Act, 1997

The electronic Irish Statute Book (eISB) comprises the Acts of the Oireachtas (Parliament), Statutory Instruments, Legislation Directory, Constitution and a limited number of pre-1922 Acts.

www.irishstatutebook.ie

Remedy for debts from members.	20.—(1) All money payable to a credit union by a member of it shall be recoverable summarily as a civil debt by the credit union from the member.
	(2) A credit union shall have a lien on the shares, deposits, dividends and interest of any member for any debt due to the credit union from that member, and may set off any sum credited to the member on those shares, deposits, dividends and interest in or towards the payment of that debt.