. I think the partner needs to write a formal complaint to the 'Complaints Officer' at the CU(they are obliged to have one) and seek a formal response. Only then should they contact the FS Ombudsman. Slim
Hi Slim
Based on Boomtobust's side of the story, I would question the motivation for the CU to set the shares against the loan.
Is this their overall policy? Time and again, we see reports of people struggling with their Credit Union loans trying to get the shares set off against the loan and being refused.
So I would ask the CU to explain why they did this.
I would seek evidence that they sent the letter, although it would be difficult for them to produce such evidence.
Brendan
An update on this very long running saga.
The CU have desided to make a payment on my BIL's death benefit policy.
We simply could not get the CU to issue us with a final response letter to bring our case to the Ombudsman. Everytme the response letter was requested the CU merely ant danced around the issue. When we threatened media intervention my SIL received a letter telling her there was a cheque available for her to collect; releasing the full repayment of her partners death benefit policy.
No mention of her partners loan or shares have been mentioned by the CU.
Seems like the credit union made a gesture of goodwill.Hi Boomtobust
That is some progress.
You have succeeded in one out of the three claims, if I follow all this correctly.
If you do not get a Final Response Letter on the other claims, make a complaint to the Ombudsman anyway and point out the problem.
Brendan
We only have one side of the story and I find that many such "stories" are embellished in favour of the complainant.
when no meaningful engagement is forthcoming from the borrower, a share to loan transfer will be done (but only after informing the member of the consequences of continued non engagement).
We simply could not get the CU to issue us with a final response letter to bring our case to the Ombudsman. Everytme the response letter was requested the CU merely ant danced around the issue.
I know, blame everyone else and complain to the ombudsman that the deceased didn't pay their way but shure the CU should have used their crystal ball to see what was going to happen
Here is the Law:
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.
Opinion:
The CU have the ability in law to set off shares against a loan balance.
The situation that appears to arise here is that all the CUs have 'savings and loan insurance' and it is one of the biggest costs in a Credit Union.
By taking the action, and the member died then his estate was deprived of the benefit of the loan being written off Central Bank and by doing so has the Credit Union been improving is arrears position?
The matter of Customer Protection Codes appears to arise as Credit Unions are not immune from being required to follow best practices.
Therefore if it was established that :
1. There was no notice of what was going to happen (reasonable notice)
2. There was a lack of fair procedures in that it was arbitrary and capricious;
3. That it is not a generally accepted practice of CUs
Then there is a good case here.
What is to be done:
You need a strong individual to represent you against the Credit Union.
I would not waste my time with the FSO - yet.
Hi,
Thank you all very much for the time given on this thread.
I can so far report that the Credit Union released the death benefit and also the loan protection has cleared off the existing debt.
The CU made the payment as a gesture of Goodwill
.
Fixed your post ... I don't have both sides of this story but going on instinct I suspect that the CU knows they are on solid ground legally but there's no publicity like a row with a grieving widow (regardless of how unreasonable they might be)
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