13th June 2016
I wanted to communicate with you on a number of important matters:-
Recent issues with our bank
I have to apologise for recent issues we have had with our main bank, TSB. I know that this has been a significant inconvenience to some of you. An issue arose at the TSB side which has caused us delays. I can only apologise to you and hope that by the time you receive this, it will be resolved. I suggest that if you have been affected, you look at our website www.solentcreditunion.co.uk in the first instance or telephone the main office with individual queries or email firstname.lastname@example.org We hope that once it is resolved, we can work with our bank to ensure that it does not happen again.
Regulatory and Legislation Changes
As a regulated organisation, we are always subject to changing legislation. One of the most recent changes is a fall-out from the banking crisis and it has been decided that although credit unions were not a party to the banking crisis, the manner in which they work has to be more tightly controlled.The impact on you is that we have to impose restrictions on how your savings account is used. In essence we can only allow “known” transactions between you and the credit union such as receipts from you, your employer, benefit payments, your bank. We cannot allow receipts from third parties unless these have been agreed by us beforehand. We will not allow you to draw down on monies paid in by third parties unless this has been agreed by us. Nor will we allow payments out of your account to third parties unless this has been agreed by us. In essence, the regulations are to prevent credit union accounts being used as “current accounts” over which there is new legislation. Should you wish to have this facility, we are able to provide you with an Engage pre-pay Debit Card which should allow you this flexibility.Indeed by the end of 2016, the Engage card should have all the facilities of a bank account, including the ability for you to set up direct debit payments. For more details see http://www.engageaccount.com/ . Note that unlike a bank, building society or credit union, any money loaded onto your Engage Card is not protected by Financial Services Compensation Scheme.
Financial Services Compensation Scheme (FSCS)
As some of you are aware, the limits of protection were changed at the beginning of 2016. Although this does not impact your deposits, we are, nevertheless, required to inform you. The notice is on our website at www.solentcreditunion.co.uk/fscs . Again I must stress that under our Rules, the maximum that you are allowed to deposit in Solent Credit Union is £15,000. Unfortunately the FSCS will not allow us to change their format at all!
CUNA Mutual Insurance
For a number of years we have provided members with death cover for savings and loans. In common with a number of other credit unions, we have reviewed the cost of this cover and must advise members that unfortunately this cover will cease at 30 June 2016, ie if the death occurs after this date, there will not be any insurance cover through us. It is not a decision we take lightly, but it has reached a stage where the cost is disproportionate the benefit which, of course, only arises in the unlikely event of an unexpected early death.
Annual General Meeting
I attach Notice of the AGM below. This is being held later in the year than normal as we have changed our year end to 31 December in the hope that if the AGM is held in June, more members may be able to attend. Copies of the accounts will be placed on the website nearer the time. We would welcome nominations for directors and if you are interested I would be grateful if you would contact me directly for more information via the credit union main contacts shown in the letterhead. For administrative reasons please let us know if are able to attend, again via our contact details above. I hope you will be able to join us and my fellow directors and I look forward to meeting you.
Yours in co-operation
Notice of Annual General Meeting
Monday 27th June 2016 – 7.00pm
At Avenue St Andrews URC, The Avenue, Southampton, SO17 1XQ
- Minutes of AGM March 2015
- Report of the Board of Directors
- Report of the Treasurer and consideration of the accounts
- Report of the Auditor
- Statement of interest payable to Junior savers and dividend to members
- Report of the Supervisory Committee
- Report of the Nominating Committee
- Appointment of Auditors
- Election of Directors
- Elections to Supervisory Committee
- Any other business