# Unauthorised Share Transfer CU



## Jonny (7 Feb 2012)

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 !


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## Fat Boy (7 Feb 2012)

Were/are you in arrears on payments to your loan account?


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## Jonny (7 Feb 2012)

The loan was in arrears about 18 mths ago but it was restructured & is running fine since


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## Jonny (7 Feb 2012)

It contains words to that effect alright   Just phone the CU  Turns out they do not have a manager at all ! Waiting for somebody to call back   Will see what the say...


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## Slim (7 Feb 2012)

Jonny said:


> 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 not good practice and should be avoided by the CU at all costs until a loan is written off. Then and only then, without consent, should a savings balance be set off against the loan. Sharp practice and highly patronising, to say the least.


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## elcato (7 Feb 2012)

Happened to a few years back when I was away for a while. I usually paid them back in much bigger installments than were required so didn't think much of not paying for a few weeks. I don't see a problem with it to be honest.


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## Jonny (7 Feb 2012)

Spoke _eventually _to CU official whom seemed to have some level of competence & they have accepted totally that this was indeed extremely sharp practice - while not being illegal  They have apologised & agreed to restore the amount immiediately to the share a\c  I impressed upon them that a text,call,email or letter would have avoided all this rigmarole


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## Elliesausage (23 Mar 2012)

This is strange, i pratically begged my cu to do this for me and they point blank refused...said it was against cu rules!


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## demoivre (23 Mar 2012)

Elliesausage said:


> 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 here.


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## Elliesausage (23 Mar 2012)

demoivre said:


> 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


`
Thaks demoivre, his responce makes sense now... i've got €2k in shares and €11.5k in debt...not even 25% as it stands...


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## demoivre (23 Mar 2012)

Elliesausage said:


> `
> 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.


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## Elliesausage (23 Mar 2012)

demoivre said:


> 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!!!


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## demoivre (3 Apr 2012)

Elliesausage said:


> 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!!!



Your CU is bound by the CU Act and as much as the manager may not like it he must comply with Section 32 (5) of the Credit Union Act, 1997.


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## Marty McFly (3 Apr 2012)

Elliesausage said:


> 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!!!


 

Hello all

I've had a similar situation as this poster with the CU one of the arrangements actually doubled my arrears....!..i was told my loan was suspended for 6 weeks to let me clear the original arrears only to be told by another person within the CU that their not allowed to do this so the arrears nearly doubled with the time.......i've engaged in person on several occasions to try and come to an arrangement with transfering shares off the balance only to be fobbed off with a similar line about the FR not allowing them to do this...

Two arrangements i had made were renaged on by the CU one of them being the suspension of the loan for a short period... the person who agreed this denied even meeting me or even speaking to me on the previous occasion..!

I'm now in the happy position that the loan and my shares are nearly equal to one another...the unhappy part is it's looking like i'm going to be out of work at the end of April so obviously i would like to simply clear the loan via my shares...i could probably get the same in cash if i have to off a close relative and clear the loan and then withdraw my shares and pay them back but it seems a bit mad that i would have to go to that trouble...

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...?.i'm still in arrears BTW...


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## demoivre (3 Apr 2012)

Marty McFly said:


> 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...?



You shouldn't have any problem doing that.


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## Marty McFly (4 Apr 2012)

Thanks....!

I was getting a bit disapointed with the conflicting advice from the CU..been a member since i was 17 (in my 40's now) an this is the first time i've ever had trouble with a loan..


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## Marty McFly (12 Jun 2012)

Hello all

Just an update...

Seems there has been a change of heart within my CU since the last time i went in to try and come to some arrangement....

Was able to transfer a huge chunk of my shares off my loan bringing the interest down and well as the principal to managable levels..

Thanks all for the help and the useful posts.....


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## unclewilson2 (14 Jun 2012)

Two arrangements i had made were renaged on by the CU one of them being  the suspension of the loan for a short period... the person who agreed  this denied even meeting me or even speaking to me on the previous  occasion..!


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