Credit union league may face insurance legal fight

THE Irish League of Credit Unions (ILCU) faces a legal challenge if it continues to force members to take out insurance with a single insurance firm.

Up to now, credit unions have had to take out assurance for account holders’ savings and loans from ECCU, the ILCU’s life assurance company, or risk disaffiliation from the league.

However, following complaints from individual credit unions, the Competition Authority has decided the ILCU/ECCU arrangement for purchasing loan protection and life savings cover is anti-competitive.