đ¨ Credit Union warns against potential $200k fee increase
George Town Credit Union urges members to vote against proposed amendments to the Cooperative Societies Act
The Credit Union in George Town has raised concerns over proposed amendments to the Cooperative Societies Act, which could result in a $200,000 operating fee hike. The bank, primarily serving public servants, argues that such an increase could threaten its foundational principles and financial stability. The amendments are primarily aimed at offshore financial entities, but the Credit Union fears it could be affected as well.
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An official from the financial services ministry stated that this is merely the beginning of public consultation on the proposed bill. The data and potential impact of the fee increase are currently under discussion. The ministry will analyze submissions from the Credit Union before making a final decision. The Credit Union is urging its members to vote in an online poll against the amendments, warning that the fee increase could challenge the cooperative model that has been serving the community for nearly 50 years.
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If the legislative changes are enacted, they could result in reduced dividends, increased member fees, changes to interest rates, and adjustments to loan rebates. The Credit Union, which provides 100% financing for first-time homeownership and support for lower and middle-income families, has emphasized the potential impact on its members, particularly those in lower to middle-income brackets. The bank is urging its members to participate in the vote to ensure its continued financial stability and service.
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