Tipperary TD Mattie McGrath levelled the accusation as the financial institution is reportedly set to tie up with Charleville Credit union in Cork.
The merger would make it one of the largest in Munster but there concern that it could have an adverse affect on the South Tipp set up.
Deputy McGrath told deputies in Leinster House that if this merger is enforced that the extra debt could damage or destroy the Clonmel union.
