# Credit Union Refuse to Open New Account



## clareG (13 Jul 2006)

Has a Credit Union the legal right to refuse to open a new account for a member they have written off to Bad Debt while that member is also paying back the written off loan.? I am very interested to find out if this is a local rule. Also can anyone tell me if you need to have €64.00 in your share account to open another account in your name?  Appreciate any replies

Thanks


----------



## Eurofan (13 Jul 2006)

Makes sense to me, surely the Credit Union has the right to refuse membership on that basis?


----------



## RainyDay (13 Jul 2006)

What do you mean by 'open a new account'? If you already have a share account open, why would you want to open a new account?


----------



## clareG (14 Jul 2006)

The shares have been transferred off the loan and the loan written off to bad debt so the system will only accept payment off the loan so no shares can be lodged into that account.  I thought a Credit Union could not refuse anyone membership if they lived in their common bond but they can refuse to loan them money.  Thanks for the replies.


----------



## Guest107 (14 Jul 2006)

It all sounds absolutely tickety boo to me.


----------



## RainyDay (14 Jul 2006)

clareG said:
			
		

> The shares have been transferred off the loan and the loan written off to bad debt so the system will only accept payment off the loan so no shares can be lodged into that account.  I thought a Credit Union could not refuse anyone membership if they lived in their common bond but they can refuse to loan them money.  Thanks for the replies.


But if you have a loan account which they will accept payment on, then surely you are still a member. It's not a case of them refusing membership. It's a question of them insisting on paying off the loan first - right?


----------



## Billo (14 Jul 2006)

Sounds O.K. to me too. You should pay off what you owe first. Why do you want to open another account. Is to to get another loan and have that written off to bad debts as well ?
Rgds
Billo


----------



## Crugers (16 Jul 2006)

> But if you have a loan account which they will accept payment on, then surely you are still a member. It's not a case of them refusing membership. It's a question of them insisting on paying off the loan first - right?


As I understand it, all shares held were used to repay some of the bad debt outstanding. That would imply that the (ex)member does not hold any shares and as such isn't a member. The current payments are not payments against a loan account (only members can have loans) but as payments against the outstanding bad debt.
Any refusal of an application for membership can be appealed to the local district court but I couldn't see any judge granting the application if any outstanding bad debt existed.
Maybe once the bad debt is cleared there would be a case. However the bad repayment history wouldn't auger well for successful loan applications in the future.


----------



## ClubMan (16 Jul 2006)

One needs €5 or more in shares to be a member of my _CU_. Not sure if that is a general rule or if it varies from _CU _to _CU_. I recently withdrew all of my shares bar €5 just to keep the account open and my membership intact in case I ever need it again. Which I doubt right now.


----------



## clareG (17 Jul 2006)

thanks for all the info.


----------

