|First||Previous (PART VII Accounts and Audit)||Next (PART IX Amalgamations and Transfers of Engagements)|
CREDIT UNION ACT, 1997
Disputes and Complaints
Settlement of disputes.
125. —(1) Save as otherwise required by or under this Act, this section applies to any dispute between a credit union and—
(a) a member of the credit union in his capacity as a member;
(b) any former member of the credit union (in that capacity) who ceased to be a member of the credit union not more than six months previously;
(c) any person claiming through any such member or former member (in their capacity as such); or
(d) any person claiming under the rules of the credit union;
and references in subsections (2) to (5) to a dispute shall be construed accordingly.
(2) Subject to subsections (3) and (5), if a credit union's rules give directions as to the manner in which disputes are to be decided, every dispute to which the credit union is party shall be decided in that manner.
(3) Unless the rules of the credit union expressly forbid it, the parties to a dispute may by consent refer the dispute to the Registrar who shall hear and decide the dispute.
(4) A decision made on a dispute as mentioned in subsection (2) or subsection (3) shall be binding and conclusive on all parties without appeal; and—
(a) the decision shall not be removable into any court of law or restrainable by injunction; and
(b) application for the enforcement of the decision may be made to the District Court.
(5) Where the rules of a credit union contain no direction as to disputes, or where no decision is made on a dispute within 50 days after application to the credit union for a reference under its rules, any such person as is mentioned in paragraphs (a) to (d) of subsection (1) who is a party to the dispute may apply to the District Court which may hear and determine the matter in dispute.
(6) The jurisdiction of the District Court under this section shall be exercised by a Judge of the District Court for the district in which the registered office of the credit union is situated.
(7) Except in so far as the rules of a credit union expressly otherwise provide, any reference in any such rules to a dispute is a reference to a dispute to which this section applies.
(8) Nothing in this section (or in section 126 ) shall prevent—
(a) a credit union, or
(b) a member of a credit union, or
(c) any person claiming through or under a member of a credit union,
from obtaining in the ordinary course of law any remedy to which the credit union, member or person is entitled in respect of any contract, excluding that constituted by the rules of the credit union.
Arbitration and procedural matters.
126. —(1) In this section—
(a) “dispute” means such a dispute as is referred to in subsection (1) of section 125 ; and
(b) “the Arbitration Acts” means the Arbitration Acts, 1954 and 1980.
(2) Where the registered rules of a credit union provide that a dispute shall be determined by arbitration, the Arbitration Acts shall, subject to any necessary modifications, apply to that dispute and—
(a) the rules of the credit union shall, for the purposes of this subsection, be deemed to be an arbitration agreement within the meaning of the Arbitration Acts;
(b) arbitrators shall be named and selected in accordance with the rules of the credit union or, if the rules make no such provision, one arbitrator shall be named by the board of directors and one by the member, former member or other person who is a party to the dispute with the credit union; and
(c) an arbitrator shall not be beneficially interested, whether directly or indirectly, in the funds of the credit union.
(3) Where the rules of a credit union provide that a dispute shall be determined by the Registrar, the Arbitration Acts shall, subject to any necessary modifications, apply to the dispute, and—
(a) the rules shall, for the purpose of this subsection, be deemed to be an arbitration agreement within the meaning of the Arbitration Acts; and
(b) the Registrar shall be deemed to be a single arbitrator for the purpose of the Arbitration Acts, and any provision contained in those Acts relating to the appointment of additional arbitrators or umpires shall not apply.
(4) The Minister may by regulations, made after consultation with the Registrar, the Advisory Committee and such other bodies as appear to him to be expert or knowledgeable in matters relating to credit unions, provide that the functions of the Registrar under subsection (3) shall devolve—
(a) on an adjudicator appointed under a scheme established pursuant to regulations under section 127 ; or
(b) if there is no such scheme, on an adjudicator appointed under a non-statutory scheme for the adjudication of complaints against credit unions.
(5) So long as any regulations are in force under subsection (4), references to the Registrar in subsection (3) shall be construed as including references to the adjudicator appointed under subsection (4).
Investigation of complaints.
127. —(1) The Minister may by regulations, made after consultation with the Registrar, the Advisory Committee and such other bodies as appear to him to be expert or knowledgeable in matters relating to credit unions, require a credit union to establish or join in establishing a scheme or schemes for the investigation of complaints against the credit union in relation to a prescribed matter of complaint.
(2) Without prejudice to the generality of subsection (1), regulations under this section may make provisions in relation to any one or more of the following—
(a) the establishment and administration of a scheme;
(b) the manner of appointment of an independent adjudicator to conduct investigations;
(c) the matters to be subject to investigation under the scheme;
(d) the grounds on which a complaint must be based;
(e) the powers of, and procedure to be followed in the conduct of investigations by, the adjudicator;
(f) the circumstances in and the extent to which determinations are binding;
(g) the procedures for the making of complaints;
(h) the publication of the adjudicator's findings; and
(i) the approval of the scheme by the Registrar.
(3) The reference of a complaint under a scheme established under this section shall not affect the rights of a member to have such a dispute as is referred to in subsection (1) of section 125 determined as provided for by the rules of the credit union, but any such dispute that relates to a matter covered by such a scheme may, if both the complainant and the credit union agree, instead of being so determined be determined under such a scheme, such determination being binding on both parties.