9 December 2011 No Comments by The Northern Standard

Monaghan Co Council, on the proposal of Co Mayor Seamus Coyle, has made an urgent plea to Minister for Finance Michael Noonan to relax lending restrictions imposed on the country’s Credit Unions.
The appeal was issued on Monday after the Council was told in Clones that curbs on Credit Union lending was leaving needy families in the county vulnerable to the predations of unscrupulous moneylenders charging exorbitant rates of interest.
The former President of the Irish League of Credit Unions, Mr Jim McMahon, told councillors that one moneylender was operating openly in the Diamond in Clones every weekend.
Speaking as part of a welcoming delegation to the Clones Credit Union building where the county authority was holding its December monthly meeting, Mr McMahon, Treasurer of the Clones organisation, said he wanted to take the opportunity to mention to the Council what was happening with the Credit Union movement at this time.
Members might be aware that Credit Unions in Ireland were operating under some restrictions imposed by the Financial Regulator. The Regulator would say that he was doing this to have a strong secure Credit Union movement, and to safeguard investments and to protect savings, and they did not doubt him in that, but unfortunately he did not seem to realise the effect this was having on the ground.
Mr McMahon pointed out that over three-quarters of the Credit Unions in this country were restricted in the business that they could do. This could have implications in the future for the staff of Credit Unions, but also on the ordinary decent people who availed of their services.
People who traditionally used Credit Unions to borrow money to tide them over Christmas now had to go to moneylenders, the Clones CU Treasurer stated.
Full report in The Northern Standard

Comments are closed.