Credit union dismisses ‘scurrilous’ rumours about its viability

A 20,000-member credit union yesterday took steps to rubbish what was described as “unfounded, vicious and scurrilous rumours” about its security.

Killarney Credit Union said it was making a public statement to put any members’ fears at ease following two weeks of rumours that the branch was in trouble.

The statement came from George McSweeney, chairman of the credit union’s board of directors, after a small number of members had withdrawn savings.

It was reported some members were upset by rumours questioning the credit union’s viability.

Staff approached by members had been asked about the truth of the very virulent stories doing the rounds and a few members had withdrawn money.

Mr McSweeney blamed the general rumour machine, but also said the credit union was investigating the source of the rumours.

“We want to state categorically there is no truth or foundation in any of these rumours, therefore we would like to reassure our members that we are perfectly viable and secure,” he said in the statement.

Killarney Credit Union has total assets of €98 million, total savings of €76m and loans to members of €34m. Its bad debt at 2.5% was one of the better ratios in the country, while loan protection and savings insurance were also available at no extra cost to members, he said.

Mr McSweeney also pointed out that Killarney was affiliated to the Irish League of Credit Unions and was a member of the Savings Protection Scheme and of the Government Protection Scheme, which meant members’ savings were protected to a maximum of €112,700.

“It should be remembered that credit unions are not exposed and vulnerable to the wholesale lending market as many banks and other financial institutions are. Therefore, Killarney Credit Union Limited is financially stable and our lending rates are not subject to the fluctuations that many other financial institutions are,” the statement said.

“The board of directors and supervisors would like to remind members that Killarney Credit Union Limited has ample lending capacity and will continue to offer lending facilities to members as required.”

Killarney Credit Union will host the Irish League of Credit Unions AGM on April 24-26.