Credit Union - loan

katemurphy85

Hi

Just question about getting loans from credit union
My mother passed away in November and the local credit union paid 3250 death benefit to us to help pay the bill. My relatives also gave us money which covered the cost completely.

2000 which the relatives paid was given to massys straight away and they where waiting on the 3250 which they got before xmas.

My brother and his girlfriend went to their local credit union (outside Dublin) with my mother's funeral bill (after we had paid at that point) and got a loan on the bill amount and spent it on xmas presents.
Is the even legal to do that?

unclebill98

So the €3250 that was given by the cu was spent?

Firstly I would assume the payment is not specially for funeral expenses but more of a payment of goodwill to the estate of the deceased member. So basically it can be spent on whatever that estate feels like.

So, yes.

Just to add, the €3250 was a loan? And then the cu paidnoff the loan with the gesture? Your post is confusing or I'm just not getting it.

katemurphy85

No, my mam was part of the local dublin credit union so when she died they automatically paid 3250 directly to massys. My relatives paid the balance of the funeral bill.

My brother got a load from his own credit union outside of dublin saying he needs to pay for the funeral despite the fact it was paid when he applied for it in a totally different credit union.

clappyhappy

Confusing; but if your brother got a loan from a different credit union, it doesn't matter what he said it was for, he still has to pay that loan back. I don't think they would just hand over the money considering that the other credit union paid the funeral home directly. So your brother now has to pay back E3250....

Liam D Ferguson

It's certainly somewhat distasteful lying about his own mother's recent death in order to raise a loan to spend on Christmas presents. But as clappyhappy said, he now has a loan and he also has the responsibility to pay it back.