Sarah Ryan
Registered User
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- 137
CU is my number one source of credit. It's paid for every car I have ever owned. Also helped to refurb my house, would be lost without them.
Why do people open credit union accounts?
- Thread starter DeeKie
- Start date
I was referring to the Life Savings element. It's operated on a points system and no clear explanation is, or was, provided on payment.
Brendan Burgess
Founder
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- 53,665
Not correct.
The so-called "bailout of the banks" was a bailout of the depositors in those banks.
If it had not happened, most of the Credit Unions would have gone bust because most of their funds were in the banks.
Brendan
except for:
- Drumcondra and District Credit Union
- Charleville Credit Union
- Rush Credit Union
- Newbridge Credit Union
- Howth Sutton Credit Union Limited
- Berehaven Credit Union Limited
Back in the early 70’s I was involved in the setting up of two credit unions. We hadn’t a clue of any financial strategies. A sympathetic bank clerk explained simple terms like credit and debit etc. There were seven of us driving blind and not knowing if we were on a road or not. But, we knew we had to drive on as many were victims to illegal money lenders (some even handed their Children’s Allowance books to them as collateral). Times were different then, banks didn’t give loans as they do in the past few years.
When I worked in England credit unions were popular in the black and Irish communities only.
The question was asked:- Why do people open credit union accounts? I reckon Irish people have long memories and know when they are onto a winner. The alternative is unthinkable.
When I worked in England credit unions were popular in the black and Irish communities only.
The question was asked:- Why do people open credit union accounts? I reckon Irish people have long memories and know when they are onto a winner. The alternative is unthinkable.
But it was there when I opened my CU account, hence it was a factor!
Lets discuss the 'bailout' first - I had clearly indicated that this referred to credit losses and these were estimated to be €500mn and did not crystallise. Conflating this with decision to pay depositors was a separate matter and also applied to anybody with a deposit account and indeed bond holders. The requirement to limit investments so that some investments were bank deposits was a Central Bank requirement not a credit union choice. So lets be clear the lending practices did not yield substantial losses as the CBI paid for report predicted.
As for the so called rescues - the process was to pay the savings balances before recoveries. With the average loan to savings to 30% - the remaining 70% would have been investments. It would have required a very poor recovery in the loan book to require any funding. In the so called worst case that I looked at the net payment er..was zero. This lack of transparency by CBI is not new. One of the issues was the unwillingness of larger Credit Unions to assume the troubled Credit Union. I believe this was a strategic mistake by the movement. However, so knowledgeable was the CBI that the Companies Act was invoked which er.. doesn't apply. Also bear in mind that this insane reserve ratio of 10% (2.5 times the banks equivalent) is the tool by which CBI determines a Credit Union as 'troubled'. Just so as you know if the ratio was 4% of all assets fro Banks - Bank of Ireland would not have need a rescue. So some of these 'rescues' amount to nonsense and it will take legal action to change the minds of some people. Noting that in one case the CBI was represented by that small firm Arthur Cox and the Credit Union was given a local solicitor whose knowledge of matters credit union was similar to some here - zero. Equality of arms comes to mind.
As for REBO their payouts were for getting mergers between Credit Unions and were not in fact bailouts. Credit Union A might have had very high reserves and Credit Union B lower reserves. In order to entice members of Credit Union A to agree to merger this incentive would have been paid.
As for the so called rescues - the process was to pay the savings balances before recoveries. With the average loan to savings to 30% - the remaining 70% would have been investments. It would have required a very poor recovery in the loan book to require any funding. In the so called worst case that I looked at the net payment er..was zero. This lack of transparency by CBI is not new. One of the issues was the unwillingness of larger Credit Unions to assume the troubled Credit Union. I believe this was a strategic mistake by the movement. However, so knowledgeable was the CBI that the Companies Act was invoked which er.. doesn't apply. Also bear in mind that this insane reserve ratio of 10% (2.5 times the banks equivalent) is the tool by which CBI determines a Credit Union as 'troubled'. Just so as you know if the ratio was 4% of all assets fro Banks - Bank of Ireland would not have need a rescue. So some of these 'rescues' amount to nonsense and it will take legal action to change the minds of some people. Noting that in one case the CBI was represented by that small firm Arthur Cox and the Credit Union was given a local solicitor whose knowledge of matters credit union was similar to some here - zero. Equality of arms comes to mind.
As for REBO their payouts were for getting mergers between Credit Unions and were not in fact bailouts. Credit Union A might have had very high reserves and Credit Union B lower reserves. In order to entice members of Credit Union A to agree to merger this incentive would have been paid.
I joined both my then work CUs (St. Raphael's and St. Paul's) when I joined AGS.
I saved a little in each consistently from those early days and as a result never had an issue borrowing towards a car, or whatever when I needed to.
I was one of the fortunate ones to win a car many moons ago, but obviously that's not a reason to recommend joining one.
I remain a member of both now in retirement, for the time being anyway, as my savings in both will double for my nominated persons should I shuffle of this mortal coil.
I saved a little in each consistently from those early days and as a result never had an issue borrowing towards a car, or whatever when I needed to.
I was one of the fortunate ones to win a car many moons ago, but obviously that's not a reason to recommend joining one.
I remain a member of both now in retirement, for the time being anyway, as my savings in both will double for my nominated persons should I shuffle of this mortal coil.
They were all liquidated. I wouldn't exactly call them bail-outs.
Brendan Burgess
Founder
- Messages
- 53,665
Well, yes and no.
They could only lend 30% of their savings to borrowers.
They put the other 70% mainly in banks. And the tax payer guaranteed these through the deposit scheme aka "bailing out the banks".
The banks' borrowers were not bailed out - the mortgage customers paid the highest mortgage rates in the eurozone.
The banks' shareholders were not bailed out - their valuation fell to zero.
It was only their depositors which included the credit unions who were bailed out.
Brendan
Setforlife
Registered User
- Messages
- 60
Joined as it via work for savings and loans, they also have a budgeting scheme.
Currently their loan rates are better than all the banks, so I’ve used them for last couple of loans. They are basically trying to
Get people to take money at any rate to get some kind of return on all the deposits.
Currently their loan rates are better than all the banks, so I’ve used them for last couple of loans. They are basically trying to
Get people to take money at any rate to get some kind of return on all the deposits.
yes
theObserver
Registered User
- Messages
- 81
My parents opened a CU account because they perceive the Credit Union as being differnt than a bank and therefore automatically more trustworthy.
They do have a very good customer service especially when dealing with the elderly who are not used to banking or mobile phones and it's very easy to speak to someone face to face when needed.
They do have a very good customer service especially when dealing with the elderly who are not used to banking or mobile phones and it's very easy to speak to someone face to face when needed.
Which insurance company gives a discount for CU members?
I know the VHI gave a discount years ago not sure if they still do.