Credit union fined €185,500 over long-term loan rule breach
One of the largest credit unions in the State has been fined for having too many long-term loans on its books.
Savvi Credit Union was also fined by the Central Bank for failing to have systems and controls in place to manage its long-term lending.
It also breached rules by paying a director, something which is prohibited under credit union legislation.
The total fine was €185,500. This had been reduced from €265,000 after Savvi agreed to a settlement with the Central Bank.
The lender rebranded as Savvi in 2017 after the merger of St Patrick's ESB, Independent News & Media and the 'Irish Times' and other credit unions.
It breached rules by having more than 15pc of its book lent out for more than 10 years.
The Central Bank said the breaches occurred between 2013 and 2017.
Savvi notified the regulator in the summer of 2017 that it had breached the long-term lending limits by having more loans exceeding 10 years than are permitted by the regulations.
Despite this, the lender issued another nine long-term loans later in 2017.
A probe of Savvi's systems found its controls were deficient in a number of respects. Savvi also fell foul of the regulators in the Central Bank by paying an unnamed director €28,341 in travel expenses over a four-year period.