The intention of this page is to keep members up-to-date on the possible Transfer of Engagement with Foyle CU, as presented to our members at the AGM on 18th December 2017. Below is a list of Frequently Asked Questions which may assist you. We will update this page with any developments.
1. What has happened?
The Board of Directors of Foyle Credit Union have been seeking a Transfer of Engagement to enhance the services currently provided by their credit union. This process will be a positive experience for both credit unions. If a transfer of engagements should take place at this credit union, members will be notified directly. It will not mean that services to members will be disrupted or changed. Members will be unaffected by this process and will be able to continue to do business as normal with their credit union.
2. Why join up with other Credit Unions?
Between a changing economic environment and increased regulation, change is inevitable for all Credit Unions. To maintain our commitment to becoming the very best Credit Union we can be, and to retain our community ethos, we need to be stronger, hence our decision to consider a partnership with other like-minded strong Credit Unions. This move is about securing the future of this Credit Union as an integral part of our community.
3. What will change?
Very little. Members share and loan accounts are unaffected by the transfer. Our back office support and other functions will be fully integrated, which will save on resources and free up staff to assist members and offer more services. As far as our day-to-day services are concerned, members should not experience any disruption. Improvements in the consistency and the quality of the service we provide to our members, the range of products we can offer, and the overall member experience are the reasons behind this move.
4. Why are these credit unions involved?
These Credit Unions closely match ethos, values and current membership benefits 9e.g. LP/LS and DBI), and all see the value in being part of a bigger progressive and modern entity – therefore they are ideal partners.
5. Will the name of the Credit Union change?
The Credit Union will continue to be known as Letterkenny Credit Union Ltd. operating online and from offices at:
• High Road, Letterkenny, Co. Donegal;
• The Mall, Ramelton, Co. Donegal;
• Foyle Street, Moville, Co. Donegal and
• Main Street, Muff, Co. Donegal.
6. What else could change?
While there will be improved efficiencies in back office services, the local benefits, the branch, and services will all remain unchanged for the foreseeable future. This project, while significant, should be largely seamless from the member experience perspective.
7. What could happen to loan interest rates and dividend rates?
The Board will ensure that members are not disadvantaged as a result of the TOE. We will continue to offer very competitive rates to members across a wide range of loan options. Members’ share and loan accounts are unaffected by the transfer.
8. What will happen to the Staff?
The TOE is part of our sustainability and growth strategy, not a rationalisation, and while some roles may change and evolve over time, the TOE will actually secure the maximum number of jobs across both Credit Unions.
9. Does this signify financial issues in either Credit Union?
Absolutely not. We are a strong Credit Union, but change is inevitable and we must move forward to ensure that we grow and continue to deliver enhanced benefits to members and deal with the regulatory issues and requirements imposed on credit unions by the Central Bank.
10. Why now?
Due to increased regulatory requirement and demands for additional services Foyle Credit Union see a transfer into Letterkenny Credit Union as being most beneficial to their members. It is all about securing the future of members and ensuring that their children enjoy the same benefits in years to come.
11. Was this transfer initiated by the Regulator?
No. This is a purely voluntary process with discussions and decisions made locally, and will be in the best interests of the members of both Credit Unions. Both Credit Unions all are well capitalised with strong reserves.
12. Is the Central Bank involved in the process?
The Central Bank have been in discussions with representatives of both Credit Unions and are happy to see that the TOE process continues. The Central Bank will review the process on an ongoing basis before a final proposal is presented to members of each Credit Union at a Special General Meeting.
13 What are the views of the Board, volunteers?
It is clear from initial talks and discussions that there is huge support for this move; from the Board, the volunteers etc. The involvement and support of members, management and staff will be crucial to the success of this transfer.
14. Who controls the Credit Union and will local people be on the new Board?
As always Letterkenny Credit Union will have a Board of Directors responsible for the governance voted by the members of the full entity.
15. Is our Credit Union becoming a bank?
Absolutely not; the transfer will simply mean that it becomes a stronger Credit Union retaining its office, people and local community ethos. Banks don’t offer attractive dividend rates, which we do. This Credit Union is owned by its members and that won’t change.
16. Has this worked elsewhere?
The Credit Union Restructuring board has facilitated a considerable number of tranfers to date and many more are underway, with significant transfer activity expected within the Credit Union movement. There are plenty of examples of successful tranfers around the country.
17. How big will the new combined entity be?
Your credit union will have combined assets of over 96 million, with a combined membership of over 25,000 members. This will ensure healthy surpluses into the future.