DUBLIN, Ireland – Ten Irish credit unions, which are not insured through the Irish League of Credit Unions, may need special legislation according to a warning by the Financial Regulator of Credit Unions. The regulator works under the Irish Financial Services Regulator Authority (IFSRA), the government agency that oversees all financial services in Ireland. The lack of insurance rises out of a disagreement with the Irish League of Credit Unions (ILCU) which insures over 500 Irish credit unions. ILCU manages a fund of _90 (US$110) million that would cover member deposits if their credit union failed. The 10 credit unions, who are not members, do not have access to this insurance, prompting the regulator's concern of the safety of the member deposits for these credit unions. Although 20 credit unions established a second credit union trade organization, the Credit Union Development Association (CUDA) in 2002, after arguments with ILCU, about half kept their membership in both organizations. It is only the credit unions that are not ILCU members who are leaving their membership deposits unprotected by insurance. The refusal of ILCU to insure nonmembers resulted in a suit brought by the Competition Authority before the High Court. According to the Competition Authority, non ILCU-member credit unions were in a disadvantaged position by not having access to the insurance and therefore could not compete on the same terms as ILCU members. ILCU lost the case, but is appealing, leaving the deposit insurance status of the 10 credit unions in a murky situation. Credit union member deposits are covered up to _12,700 (US$15,580), which is less than the _20,000 (US$24,537) bank customers deposits are insured for. If the solution is not resolved the regulator has said it would seek "statutory backing" to protect member deposits in the 10 credit unions. [email protected]