Brendan Burgess
Founder
- Messages
- 52,117
The limit of 25% is set in the Credit Union Act and is only available with the explicit approval of the Board of Directors...Or in plain English, you must not reduce your shareholding to less than 25% of the loan outstanding...
Only with the explicit approval of the Board of Directors...So if you have a loan of €100 and shares of €30, you can withdraw €5 maximum...
Section 32(3) of the CU Act seems not to differentiate between shares, savings or deposits......This would not apply to a savings account, as distinct from a share account. I must confirm if it's a share or savings account...
Not without 'flouting' the law!...Is there any way around this?...
One of many reasons!...This legislation should be changed...
He has a €40k loan from the Credit Union with an interest rate of 8%. He also has shares of €10k with little or no dividend. He has asked the CU to set the shares against the loan and so reduce his annual interest bill by €800, but the CU is refusing.
I had this same problem with my credit union, I explained to them that I couldn't afford the payments due to job loss but they weren't budging on what I had to pay back, so I asked them to take my shares and they kept saying no. Eventually I stopped paying them until they sat up and paid attention and then they agreed to take my shares against the loan. So maybe he should do that.
Correct, it is against the law (CU Act).Just to be clear -
No credit union can refund money if it brings the deposit below 25% of the loan outstanding.
Em! Policy and practice in individual CU's would vary. Since such a withdrawal would be a breach of the CU Act it would(should/must) be refused by all (by teller, by manager, by Board).However, if you try to withdraw shares in excess of 25%, the teller will refuse and refer you to the board?
See above.Are such withdrawals referred to the board in practice?
See above.What is their attitude to such withdrawals. Are they generally approved or generally refused?
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