For some months passed Letterkenny Credit Union and Foyle Credit Union have been engaged in a Transfer of Engagements (ToE) process. Throughout this confidential process, steering groups from both Credit Unions worked positively and constructively to develop the potential for a ToE. It emerged from these meetings that both credit unions were an ideal fit in that they:
- Share the basic ethos of the Credit Union movement
- Make similar credit union products and services available to their members
- Both operate to a high standard in the service of their members
- Have dedicated, competent staff and Boards of Directors
- Received the approval from the Central Bank to proceed with the project
However, we have found that completion of a transfer might not serve the best interests of the existing members of Foyle Credit Union. The creation of an enlarged credit union entity operating in the region could create undue and detrimental competition in the operations of credit unions and, thus, in the provision of services to members.
Both Credit Unions approached the potential ToE positively, professionally and in the true spirit of the credit union movement in Ireland. The emergence of certain obstacles made the ultimate goal of a successful ToE impossible to achieve.
Consequently, Letterkenny Credit Union and Foyle Credit Union have mutually agreed not to proceed with the ToE at this time. This outcome is very much regretted by both credit unions but, in the circumstances, is unfortunately necessary in the best interest of members of both credit unions.
Both Letterkenny Credit Union and Foyle Credit Union will continue to work together and share expertise. They will co-operate on compliance, service and regulatory requirements.