Dáil Éireann Debate, Tuesday - 25 March 2025
290. Deputy Ged Nash asked the Minister for Finance when he plans to bring the credit union sector under the scope of the Dormant Accounts Act 2021, in order that the dormant accounts within credit unions can be repurposed for community projects. [14198/25]
View answerDormant accounts legislation is a matter for the Department of Rural and Community Development. The Dormant Accounts Act, 2001 (as amended) provides for accounts in credit institutions to be transferred to the Dormant Accounts Fund when an account has been dormant for 15 years.
Credit unions are currently not subject to the dormant accounts legislation. Accordingly, dormant accounts in credit unions are not transferred to the Dormant Accounts Fund.
The Credit Union Act, 1997 (as amended) does not make reference to dormant accounts. It is a matter for each credit union to set their own policy for dormant accounts and the reactivation of dormant accounts. In general, a credit union account is deemed dormant if there have been no member transactions for a period of 3 years from the last transaction. Once classified as dormant, funds are transferred to reserves.
The Programme for Government has a commitment to amend legislation to bring the credit union sector into the scope of the Dormant Accounts Act. I have asked my officials to investigate this matter. This includes: establishing the quantum of funds held in credit union dormant accounts, consulting with key stakeholders on the most appropriate amendments needed to dormant accounts and liaising with Department of Rural and Community Development.
