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Q: What is a credit union?
A: A financial cooperative,
owned, and controlled by its members for its members.
Q:
Why do Credit Unions exist?
A: To service the financial
needs of their community, on a not for profit basis and to retain members
savings in their community for the benefit of all members.
Q: Who owns a Credit Union?
A: The members own the
credit union.
Q: Who can join a Credit Union?
A: Any person living or working in the common
bond is eligible for membership.
Q: What is the common bond?
A: The common bond is that
factor which unites all members of a credit union. It defines the area
within which the credit union can operate. In Ireland, the most usual
common bond are Community bond (where all members live in defined
village, town or locality); Occupational Bond ( where all members are in
the same occupation or work for the same employer); Associational Bond (
where all members are in the same society or association).
Q: Who runs a credit union?
A: A voluntary board of
directors, elected by the members at a general meeting runs the credit
union.
Q: Who regulates Credit Unions?
A: The Credit Unions are regulated by the Irish
Financial Services Regulatory Authority since May 2003, it was previously
under the guidance of the Registrar of Friendly Societies. IFSRA
regulates Credit Unions through the Registrar of Credit Unions whose aim
will be to ensure the best possible financial conduct by Credit Unions.
In addition, to Credit Unions affiliated to the Irish League of Credit
Unions. Every Credit Union has an appointed supervisory committee whose
role is to protect the interests of members, and to act as independent
watchdog of Credit Unions. Credit Unions are governed by legislation in
the 1997 Credit Union Act. Each Credit Union is run by a voluntary board
of directors, elected by members at an annual general meeting held
annually.
Q: What can a credit union do for you?
A: Your credit union can
help you achieve financial independence through regular savings and fair
and affordable access to loans.
Q: What are the Operating Principals of Credit Unions?
A: Credit Unions adopted
operating principals at the 1984 Annual General Meeting of the Irish
League of Credit Unions. These 10 guidelines are founded on the
philosophy of co-operation, equality and self help:
These include:
1) Open & Voluntary Membership
2) Democratic Control – all members have equal rights
3) Limited Dividends on Equity Capital
4) Return on Savings & Deposits- a fair rate of interest is paid on
savings & deposits.
5) Return of Surplus to Members
6) Non Discrimination in Race, Religion, and Politics
7) Service to Members – improving services to members
8) On going Education – promotion of education of members, officers and
employees.
9) Cooperation among cooperatives – cooperation with other credit unions
at local, national and international level.
10) Social Responsibility – advocating social justice and development
Q: What if I live elsewhere but work in within the Tuam common bond
area?
A: You are eligible to join if you live or work
within the townlands of Tuam, Headford, Dunmore, Turloughmore,
Abbeyknockmoy & Corandulla/Annaghdown. If in doubt, please contact us on
093-24645.
Q: Can I transfer my credit union account to St Jarlath’s Credit Union Ltd?
A: Provided that you meet
the membership criteria of living or working in Tuam. You can transfer
your savings and keep you savings history. You can also transfer you loan
– subject to approval by the Tuam Credit Union Ltd Credit Committee and
continue to pay the loan balance at Tuam Credit Union Ltd.
Q:
What are shares?
A: Every €1 saved is equivalent of 1 share in a
credit union. A minimum saving of 20 shares/€20 is needed to keep the
account open. You should save regularly to build up a savings history.
Each share is eligible for a dividend at the end of the year. The more
savings held by the Credit Union, the more funds are available for loans
to members.
Q:
What is the Common Fund?
A: As the amount of shares
builds up, the common fund of money grows. This in then available for
providing loans to members. All members are encouraged to save regularly,
even when repaying a loan. This gives the member several direct benefits,
and ensures that there are funds for the credit union for use by all
members.
Q: Are my savings secure?
A: All credit unions are
affiliated to the Irish League of Credit Unions and are secured in the
following ways:
- All savings are protected by Free Life
Savings Insurance *
- All officials of credit unions, whether
volunteers or staff must be fidelity bonded.
- All monies received are properly recorded
and lodged regularly.
- Full financial statements are prepared and
available to members. These are circulated in advance of the AGM and can
be examined by members.
- Annual independently audited returns are lodged with the Central Bank of Ireland.
- All Every Credit Union has an appointed
supervisory committee whose role is to protect the interests of members,
and to act as independent watchdog of Credit Unions.
Q: What is
Life Savings Insurance?
A: Life Savings insurance
is a life insurance cover Tuam Credit Union Ltd provides freely to all
eligible members as an additional incentive to save regularly and
maintain savings in the Credit Union.
Q:
What are the Benefits?
A: The nominee will receive
a financial sum in the event of your death. The amount you receive depend
on your age and how much you have saved in Tuam Credit Union Ltd over the
years. Life Savings Insurance is provided by Tuam Credit Union Ltd, there
is no direct cost to you.
Q: Am I eligible?
A: You are entitled to Life
Savings Insurance cover when you save with your credit union if you:
- Join the Credit Union before the age of 70
years and
- Are actively at work, and if not working
are in good health.
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