The Irish League of Credit Unions has brought forward by a year moves to change its funding structure. The development is thought to be a response to the withdrawal by 10 credit unions of their insurance policies from the league's monopoly provider, Eccu. It also comes as the Competition Authority expressed concern that its [the authority's] moves against the monopoly might not be opening the market for credit union insurance.

If this is accepted, Eccu will operate on a cost-recovery basis and the union's 530 members will pay an affiliation fee to the league. There is a high degree of disaffection within the movement and it is thought that agreement on affiliation fees will be difficult to reach.

The 10 unions are said to be members of the Credit Union Development Association, a lobby seeking reform. Some members have alleged in a complaint to the Competition Authority that Eccu charged fees 30 per cent more than the market rate. They brought their business to Hibernian in June, breaching league rules and reducing the profits used to finance its operations. But no disciplinary action has been taken against the members.

It is thought this reflects disagreement within the league's board. While some may favour sanctions, others argued that the change to be put to the conference next month would woo business back if Eccu's charges reduced.

The movement has been riven by internal dissent and a highly critical report by a consultant, Mr Phil Flynn, called for radical reform. Referring to Eccu, which provides loan protection and life savings cover, Mr Flynn said it was crucial the company should operate with greater autonomy and with transparency of pricing.

He added: "We were made very forcefully aware that the inclusion of commission in premium charges is a source of disquiet across the movement. This inflates the cost of the services provided by Eccu and does not provide for transparency in terms of the true cost of insurance services nor in the way in the Irish League of Credit Unions is funded."

Eccu has also been the subject of Competition Authority scrutiny. In July, it revoked a certificate that said a requirement on league members to do business with Eccu did not offend the Competition Act. That development could open the market to competition but it is unclear what stance the league adopted towards a revocation. It is understood the conference in November will "discuss" the rule that confines unions to Eccu, but there is no proposal to change the requirement.

While one analysis suggests the decision not to sanction the unions that moved to Hibernian renders the rule obsolete, it remains. The Competition Authority member whose paper explained the revocation, Dr Paul Gorecki, said: "We're rather concerned that the revocation may not be having the desired effect of allowing the credit unions take advantage of low price expenses other than those available from Eccu."

With more than €7.5 billion on deposit in the credit unions, its insurance market is lucrative. It is thought the authority is monitoring the situation.