Credit Union Loans

SteoL

Hopefully a quick query. I have recently been made redundant and have offered a friend a few grand to payoff a loan they have with the credit union. My friend is convinced the CU will enquire as to the source of the payment. I've no problem with my circumstances being disclosed but my friend doesn't want to declare anything as they feel they shouldn't have to.

Does anyone here know at what amount a source of payment must be declared to the CU (I.e. Minimum amount to be declared)? Being a banker myself (or ex banker) I am aware of AML procedures etc, just not familiar with CU policies on same

It's a pride thing on my friends part, who doesn't like anyone knowing help was needed.

Thanks for reading.

naughtysmurf

I doubt very much if any questions will be asked, I'm a regular borrower from my credit union, sometimes pay a loan of early, sometimes on time.....never been asked anything

unclebill98

Now a days there is no limit per say. If it's out of line with what the know about the customer then they'll ask, he must answer or they can refuse the cash.

If it's to pay off a loan cause he needs a hand, would he be behind in payments? If so then any teller worth there salt will ask, after all aml rules start with them.

Then again it's a cu, not exactly worries about aml.... But changes are on the way.

SteoL

unclebill98 wrote: »

Now a days there is no limit per say. If it's out of line with what the know about the customer then they'll ask, he must answer or they can refuse the cash.

If it's to pay off a loan cause he needs a hand, would he be behind in payments? If so then any teller worth there salt will ask, after all aml rules start with them.

Then again it's a cu, not exactly worries about aml.... But changes are on the way.

Thanks for the replies. No Bill he's not behind in payments but is retiring this year so he's trying to get everything in order in advance of this. I'll let him know, I already told him it shouldn't be a problem.

Thanks again,

filmbuffboy

I think financial institutions only ask questions about monetary lodgements if the amount is 10,000 or over due to money laundering laws. any amount under that & its none of their business!

stinkle

filmbuffboy wrote: »

I think financial institutions only ask questions about monetary lodgements if the amount is 10,000 or over due to money laundering laws. any amount under that & its none of their business!

This is exactly right. I used to work in a CU and this is the law everywhere, you must provide proof if it's €10,000 or over. Anything less than that doesn't have to be declared. If he is still worried about what people might think/ask then perhaps set up a direct debit over a few months rather than pay one big lump sum - but again, once it's not over 10k it's no one's business but his own

unclebill98

Money laundering rules are.

If it's out of line with what the bank know about the customer then questions can be asked. Money laundering is not about massive amounts.

While systems may trigger after a certain amount staff will raise and eyebrow if suddenly a customer is presenting something that's not in line with their account behaviour.