Hi There
Recently my CU tranferred an amount from my share a\c against my loan balance I was not aware of this until I saw the statement I did not authorise this in any way On contact they said it was in my best interest (to save on interest charged & it was approved by the board) SURELY they needed permission to do this !
This is strange, i pratically begged my cu to do this for me and they point blank refused...said it was against cu rules!
`You are permitted to do so under Section 32 (5) of the Credit Union Act, 1997 as detailed below:
32.(5) Where a member of a credit union is indebted to the credit union and consents in writing to the credit union acting under this subsection, the credit union may, by way of set-off against the indebtedness, withdraw any of the member's shares or deposits; and such a withdrawal may be made notwithstanding anything in subsections (2) and (3). See
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Thaks demoivre, his responce makes sense now... i've got €2k in shares and €11.5k in debt...not even 25% as it stands...
No he's wrong - the 25% only applies if you are withdrawing funds ! You are entitled to offset all the shares against the loan balance.
He was very stern in stating that there was no possible way that this could happen said that it was against cu rules and that in fact the matter was with the Financial Regulator because so many people had the same difficulty as me!!!
He was very stern in stating that there was no possible way that this could happen said that it was against cu rules and that in fact the matter was with the Financial Regulator because so many people had the same difficulty as me!!!
If push comes to shove can i do that...get a loan of the dough and walk in and clear the loan in one go then with draw my shares...?
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