Plea to Imbert: Remove restrictions on credit-union death payout

The EDITOR: This is an appeal to the Minister of Finance to remove the restrictive limits on credit-union death payouts in TT.

Honourable Minister, as a stalwart advocate for financial justice and economic empowerment, we, credit union members across the country, humbly urge your esteemed office to revisit and revise the existing regulations governing credit union payouts upon a member’s death.

Currently, Section 40-41 of the Co-operative Societies Act, Chap 81:03, imposes restrictive caps on the sums credit unions may disburse to beneficiaries without requiring probate or court approval.

While well-intentioned, these limits impose undue hardship on grieving families, undermine the purpose of credit unions, and contradict the principles of equity in our financial system.

The loss of a loved one is emotionally devastating, and financial stress should not compound this grief. Under current rules, families face delays in accessing funds exceeding the capped amount (eg $50,000), as they must navigate the costly, time-consuming probate process.

For many, these funds represent emergency resources for funeral expenses, medical bills, or household sustenance. A mother awaiting a $200,000 payout to settle her spouse’s debts, for instance, could face months of legal hurdles, plunging her family into avoidable hardship.

Removing the cap would grant immediate relief to vulnerable citizens when they need it most.

TT’s banking sector imposes no such caps on account payouts after death, allowing seamless access to funds for beneficiaries.

This disparity unjustly penalises credit union members, often from low or middle-income households, who rely on these institutions for community-centric financial services. Why should loyal credit-union members, many of whom lack access to traditional banks, face additional barriers?

Eliminating this cap would align credit unions with national banks, fostering fairness in our financial ecosystem.

The probate process in TT is notoriously slow, often taking months or years to resolve. By requiring court approval for payouts above the threshold, the current system burdens both families and the judiciary.

Credit unions, which pride themselves on efficiency and member care, are likewise constrained by bureaucratic red tape. Removing the cap would reduce administrative costs for credit unions and free judicial resources for more pressing matters.

Andy Jangeesingh

Via e-mail

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