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
$200,000 among nearly 20,000 is just $10 per person. What is the problem with $10 per year?
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?
wow, juju was quick to throw her BP under the bus? she has NO loyalty to anyone other than herself.
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.
$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.
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.
Ask McKeeva how many Class B banks closed on his watch after a 50% fee increase. Killing the Golden Goose.
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?
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….
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!
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.
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.
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