Credit Union raises alarm over possible $200k fee hike
(CNS): The Credit Union is calling on members to vote against a potential fee hike as part of proposed amendments to the Cooperative Societies Act. The public servants’ bank is speaking out against the amendments, which are aimed at offshore financial entities. If it is caught up in a possible $200,000 operating fee, this could threaten its “foundational principles and financial stability”, it has said.
However, an official from the financial services ministry who spoke to CNS confirmed that this is just the start of the public consultation on the proposed bill. This is the period during which the data and potential impact of the fee hike are under discussion, and the information collected will support the policy behind the legislative amendments.
“Nothing is set in stone yet. This is just fact-finding,” the senior official told CNS.
Once the ministry has analysed the submissions from the Credit Union, it will be able to make a judgement on whether or not this institution, despite being regulated by CIMA, can be excluded from fee hikes targeted at non-domestic financial institutions that have not seen an increase in fees for many years, despite the soaring cost of regulation.
CNS understands that the inclusion of the Credit Union is unlikely to get support from the wider UPM Caucus.
But given the potential impact on the Credit Union, it is calling on its members to vote in an online poll so it can demonstrate their support for the bank’s position to the government. The institution has warned that if the government imposes the fee, it would challenge “the cooperative model that has been serving the community for nearly 50 years”.
“The proposed fee hike comes at a time when the Credit Union is already dealing with increased operational costs,” bank executives said in an email to members. “Currently, the Credit Union spends around $800,000 per year on regulatory obligations while maintaining low fees and favourable rates for members.”
If enacted, the legislative changes would likely result in reduced dividends, increased member fees, changes to interest rates and adjustments to loan rebates.
“These changes would impact all members, particularly those in lower to middle-income brackets who rely on the Credit Union for affordable banking solutions,” the bank stated. “The Credit Union uniquely supports local members by providing 100% financing for first-time home-ownership and support for lower and middle-income families.”
Urging members to vote against the amendment, the bank said their participation is crucial in ensuring its continued financial stability and service.
See the Consultation Paper of the 2025 Revision of the Financial Services Fees to view the proposed amendments.
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Category: Banking & money, Business
Why not reduce the number of MP’s instead? 15 is plenty and would put you up an additional 400k after you take the 200k you were try to extort from your people.
Why not raise vehicles and drivers licenses ? why not raise the Vehicles/Drivers licenes fees, it been the same for many, many years. That’s why it’s so many cars and accidents on the road. Expats come here earning 6 $ per hour and gets a car and could never do that in their country.
The credit union has been growing and growing, and now are expanding their membership to non-CIG as well. They are approaching $1bn in assets, and playing a bigger and bigger role in local banking.
Local banks (in case anyone noticed) also had their fees go up. Banks like Butterfield will have their fees go up $500,000 or $1,000,000 depending on where they land.
If the credit union wants to play on the big field, they have to consider using a big bat.
$200k against AUM of $1bln is an increase of 0.0002 per dollar, or 0.02% This is a complete nothing burger.
The credit Union pay lots and lots of money for rent in the Brac for many,many years. They bought land in the early nineties to build their own building but never did, chose to pay big rent to everyone know who . That’s lots of money down the drain that could been saved if they had built in the nineties
$200,000 among nearly 20,000 is just $10 per person. What is the problem with $10 per year?
How about $10 per person for the entire population? That would bring in at least $800,000. They used to do it many years ago it was called a “Head Tax”, but only imposed on males. I guess they had forgotten than women were given the right to vote, but if you hadn’t paid your Head Tax that was grounds to deny you the right to vote in an election.
Men should have had to pay that one twice.
if seamen didn’t pay their head tax. they were stopped from leaving at the Airport to join their ship, at least that’s how it was in the Brac
Interesting that as soon as income increased fees are going to impact politicians and civil servants, they squeal with outrage…..!!
Credit Union is not just for Civil Servants. It is providing commercial loans and competes directly with the banks.
Really?? Maybe Credit Union should start answering some questions!
So why should they not pay their way..?
There’s a lot of scaremongering going on here.
Firstly, this is a PROPOSAL people. Consultation is in progress.
Secondly, 200k sounds like a big number, but needs looking at in context. How will that actually impact members? Credit Union needs to be more transparent here?
FACTS and CRITICAL THINKING or EMOTIONAL OVERREACTION
The Credit Union has reacted vehemently as if the instution was itself being threatened.
Consider the facts.
1. The Ministry of Financial Services is in a period of formal consultation. It has published a paper with proposed fee increases and asked stakeholders for feedback.
2. The feedback specifically asks if the proposed fee will create a “material adverse effect” on the instution or its clients.
3. Credit Union claims the proposed fee of CI$200,000 will cause a material adverse effect on it and its members.
4. The Credit Union has almost 19,000 members.
5. The Credit Union generated CI$16.9M in profit for the year ending 2023.
6. If the credit union thinks it cannot absorb a CI$200,000 license fee, then it can make the case for why it cannot afford to pay the proposed fee.
7. If the proposed fee of $200,000 was divided by 18,000 members, then members would have to pay a one time fee of CI$11.11 per annum. If the # of members is higher, the fee goes down.
8. Maybe the Government imposes a lower fee, of CI$150,000 or $125,000 per annum instead of CI$200,000.
9. With CI$16.9million in profit, perhaps the Credit Union could absorb the cost and not pass it onto to its members at all.
10. Whether Caucus bows to the furor of the Credit Union or not, the Government incurs costs to facilitate the Credit Union doing business.
How many people are willing to fork over an extra $11 bucks annual contribution to government waste?
Why is the proposed fee 10 times more than for Building Societies? Thry should pay same fee.
The continuing theme with CIG is that they investigate a “proposal”. If at that stage the proposal is not forcefully castrated by we the people, it becomes a done deal. THAT is why it is mandatory to raise a BIG stink as soon as a “proposal” raises its ugly head, even before the “consultation” phase.
Exactly!!! Thank you.
Naive.
wow, juju was quick to throw her BP under the bus? she has NO loyalty to anyone other than herself.
I hope Andre is taking note and I am pretty sure he played by the book as that’s what he always does. Something smells fishy here, like someone didn’t read their paperwork, got caught out and tried to blame Andre. Not falling for it.
Andre jumping ship anyway. Watch and wait.
Likely a wise move.
Good. He doesn’t belong with them or the PPM. He and Wayne need to start something new, with someone new and without any of the other MPs.
Wayne would need up his game, he no leader!
Yes please!
Typical UDP process. The left hand has no idea what the right hand is doing! Every man for himself. No togetherness.
Can you please FOI and have published who government bought these properties from??? There should be full transparency here!
Purchasing expensive beach front access to have “access and prevent development” is a load of crap!!!
Perhaps campaign promises were made so that the elite could have privacy. Jay claims to be for the less fortunate but now buying up all this property that could potentially be at inflated costs will keep housing even further out of reach to the people.
Now we are competing with government to own property.
They have no business cases to support these purchases. For the love of god people wake up and realize what is going on here!
Taking money from the Environmental Protection Fund when the NCA hasn’t protected the land tells you all you need to know!
I wonder which realtors got these deals?
I am a North Sider and I will not be silent this next election!The people will be presented with facts not fiction. What them old people say “you can fool people some of the time but not all of the time”.
April 2025 can’t come soon enough.
I sincerely hope so!
$800,000 spent on regulatory matters? That’s either a typo or the bank has regulatory issues it is dealing with.
They should clarify that because it concerning. Surely $800,000 could be better spent by a community bank trying to help people in need.
lets speak the truth. the only reason why the worthy Credit Union is being touched is because the down town bankers are screaming about increased fees. i assume that they have told CIG well what about CI Credit Union aren’t you going to hit them too. It comes down to putting ya foot down CIG!. they will threathen that they will leave ladelala but we have heard that story so many times.
SAY NO TO CREDIT UNION FEE INCREASE BY CIG.
SAY NO TO COMMERCIAL BANKS INCREASING FEES WHENEVER THEY FEEL LIKE DOING SO! Weren’t we told that computerization, online banking, would alleviate a lot of manual work, which it did, less demand for onsite staff, which it should have, etc, etc, so why does the service fees, internal transfers fee , and all of the other fees on my account keep going up. The greedy, unscrupulous just get more greedy. There incessant fleecing is dragging us all down below the poverty margin.
Absolute truth! Only bank robbers are the banks!
From what I read this is a proposal. The reactions appear as thought some persons belive this item to be a fact. Even the Premier has jumped in with both feet. A proposal is for discussion.
The Premier jumping in with both feet is certain to have a big impact.
BIG THUNDERING IMPACT.
“Elephants stomping on ants” as Big Mac likes to say.
Where there is smoke there is fire.
Ask McKeeva how many Class B banks closed on his watch after a 50% fee increase. Killing the Golden Goose.
Despite the Class B banks closing/leaving, Financial sector fees paid to the CIG coffers have been higher than ever.
Have they been missed?
That’s because government keeps raising fees on the remainers. But they can’t keep doing that or one day the situation will become untenable, and then they’ll be sorely missed.
No worries, JuJu already threw Andre under the bus for that.
Juju knew all about it as it has been discussed with her caucus.
Did she forget that ultimately she is Finance Minister or just playing dumb as usual?
She doesn’t have to play dumb.
This proves that she has no business being Minister of Finance. She probably can’t even read a balance sheet.
The banking cartel which has strong influence over the UPM government is looking to wipe out the credit union so there is no one challenging them when they want to jack the rates for everything up. Where is the Premier when you need her?
this is the govt cartel making this money not the baking cartel….
not enough leavening?
I got a rise out of that.
Credit Union is more like a cooperative building society than a bank. It’s owned by it’s members and it’s activities and opportunities are limited compared to retail banks. There simply is no comparison and I agree, credit union serves a good purpose here and should be left alone.
Instead of looking for yet more cash cows to milk, how about politicians and government reign in their reckless spending, come in under budget on projects, pay off loans and bonds, and hedge against pension liabilities. They could even learn about balance of trades and innovate to come up with local products to export, but they too inept to do anything.
I guess if it is wiped out them a huge chunk of the population will have no choice for a mortgage,
Obviously someone is cozying up with the commercial banks.
First, the government “protects” us from lower internet fees by banning Starlink.
Now government wants to protect us from enjoying low banking fees and a nice interest return by hiking fees on what is basically a non-profit organisation doing its best to keep fees low, and return a decent interest rate to its members while keeping loan interest rates down.
Damn! How much more government protection can we take?
It would be bad enough if this idiotic proposal came about in good economic times, but to add fees and potentially lower share/deposit interest rates to members and potentially increase lending rates in putrid and excremental in concept. Who the hell thinks up this shite?
Whoever proposed this mindlessly moronic Credit Union fee hike: vote them the hell out come next election!
Just wait for the next full moon and they will dream up some more bright ideas!
Literally not a non-profit by virtue of paying its members dividends. Otherwise, I get the sentiment.
I never said it was a non profit. I said it was a cooperative… similar to a building society in the UK.
Seems a bit dramatic over a $200k fee increase. Per their website they have 17,000 members, that works out to less than a dollar a month for everyone. They also have $400mio in deposits so could pay 0.05% less and make that back. I did note that they are putting up their fees anyway so maybe they figured that they couldn’t charge more on top of what they are planning on charging? And final one is the accounts show a 24% increase in salary costs 2022vs2023, no idea what that relates to, but possibly manage costs a bit and save that $200k?
Probably due to bad debts
Have you seen who chairs their Board? Useless as tits on a boar hog.
Same for the CEO.
They now operating like a bank with so called new leadership. They should be subject to the same class licensing fees. Don’t make them hiding behind this cooperative spirit fool ya. They like a bank without the conveniences and now slower than ever
True @12:45. He taught me RE and English back in the day. He knew his bible back to front but he could not speak or write proper English himself, never mind teach it. Nice enough guy but clueless, should never have been in Education.
Put another way, government could trim things by 0.0125% and realise a $200,000 saving and eliminate the need for the increase.
Why should they be treated any different that our banks because they Govt??
Because government works primarily to support government, not us. All government employees have the ability to join the Credit Union and enjoy the highest interest rate on deposits in the Cayman Islands. Only government employees, and, I believe, the peripheral services.
I finally get it, after all these years, and I don’t resent it a bit. If I’d have gotten it sooner, I’d have done anything to become a CIG employee, in ANY field. Best and least expensive health care. Credit Union. An actual living pension, including perpetual health care. It’s the best gig in town, and I’m just sorry I was too stupid and independent… and prideful .. to see it sooner.
I think the Credit Union is the best thing going in the Cayman Islands; I only wish I could buy stock in it in the same way as I bought stock in CNB. I think the Credit Union is in many ways the core of the financial system for the majority of electors, and as such is crucially important. Any MP who would allow it to be compromised would be turning their backs on CIG employees. If the Credit Union stumbles, we will all feel it. Thus, all of us must do whatever we can to support it. That is what I think.
Because they are not retail banks they are effectively a local cooperative, owned and run by it’s members. Products, services and client base completely different to commercial banks. There is no comparison.
Um, there is still compliance regulations. That is what this will cover
I know this, I work in FS and compliance but I still don’t agree with the proposed fee.
Because it is a credit union and not a bank!
LOL, can’t afford to lose that many votes, never going to happen.
Andre’s Crystal Harbour and WBR voters are not Credit Union members so hardly surprising that they had him bring it forward to test the waters.
You understand the fee increase was going to apply to all financial institutions.
These bills are coming from a government that has no idea how to control spending and believes that the budget will increase indefinitely off the back of the FS industry.
In tyoicsl self, all about us, a quote apparently made from The Government of narcissists:
‘Credit union is much different from a commercial bank. There are perhaps some discussions that need to be held in other respects, but certainly not taking from Peter to pay for Paul,” she said.’
Do not hear any screaming in support of the people who have been and are being robbed by the ‘commercial bank’.
Who is allowed to become a member of the Credit Union?
Currently, only government employees are allowed to become Credit Union members.
False
https://www.creditunion.ky/become-a-member
Restricted to those categories then, government and it’s authorities.
False. Read it again.
the part you’re missing is that it also extends to their family members. I have a CU account and been private sector all my life
Proven my point – not open to everybody!!!
Did you manage to read your own link???? Those entities are GOVERNMENT!!
False. Read it one more time, slowly this time.
You split hairs with diligence and prevail only through churlish persistence.
Appears you need to remove your rose coloured glasses and read into your own correctly.
If you think that the average non-governmental person can join the Cayman Islands Credit Union you are WRONG! Do some research!
Not true.
Before you make these comments you should verify your information.