ILCU contorts language once again?
ILCU may want to reconsider its public comments in relation to what its SPS is and isn’t.
In particular its [broken link removed]which when read is misleading and factually incorrect. I should hope that its member credit unions are not telling their members that their credit union has a guarantee under the state DGS or that the SPS is a deposit insurance scheme.
“The extension of the governments Deposit Guarantee Scheme to credit unions means that in effect all credit unions who are affiliated to ILCU have a double guarantee which our members can depend on for security. Firstly, the savings of credit union members are guaranteed by the Government up to a maximum of €100,000 and secondly, credit unions who are affiliated to the ILCU are also covered by the Savings Protection Scheme Fund. The SPS fund also provides a discretionary guarantee for members savings up to €12,700” -ILCU
Is ILCU not aware of what the states’ Deposit Protection Scheme is or it has deliberately sought to misrepresent it as guaranteeing credit unions? The states’ protection scheme guarantees savers compensation against loss up to €100,000 and not credit unions. Yet ILCU writes of “ the extension of the DGS to credit unions” – this is not correct. The scheme is extended to cover credit union savers funds and legally obligates all credit unions to have to participate. This “extension” according to ILCU means that its affiliate credit unions now “have a double guarantee”. What does it want readers to think? That credit unions are guaranteed? Having a guarantee of what? The DGS does not provide a credit union with a guarantee. And while the SPS may provide a guarantee to back a solvency work out plan, credit unions have no legal right whatsoever to this support. The ILCU SPS most certainly does not provide a guarantee to savers unless it means that if it decides it is solvent enough to pay compensation it will pay out is a guarantee- but this would be stretching the common perception of what a savings guarantee is and isn’t.