Sunday 4 December 2016

Members oppose takeover of credit union by rival lender

Published 15/08/2015 | 02:30

Naoise O Cearúil
Naoise O Cearúil

Members of a Kildare credit union have questioned moves to have it taken over by a neighbouring lender.

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The board of Maynooth Credit Union has agreed to it being merged with the larger Naas CU, with funds to support it being provided by a League of Credit Unions bailout fund as part of a rescue operation.

But more than 80 members of Maynooth attended a meeting in the town earlier this week, raising objections to the fact that all the staff in their credit union are being made redundant, with members set to lose insurance services under the merger plan.

They are seeking 50 member signatures to force the board to hold a special general meeting.

There are fears that the Central Bank will close down the credit union if the deal does not go through.

Maynooth-based county councillor Naoise O Cearúil, who organised the meeting this week, said his group was unhappy about the planned takeover of Maynooth by Naas.

The board of both Maynooth and Naas have agreed to the tie-up.

But Mr O Cearúil questioned if the board of Maynooth had the mandate to sanction the link-up between the two lenders.

He said no annual general meeting had been held for three years, and the board had been in place beyond its three-year term.

"We are not opposed to the merger, per se. But staff are being made redundant - these are people we know and trust - and there will be a loss of death benefit insurance and reduced life-savings insurance cover."

Irish Independent

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