CUs seek wages of loan defaulters

CREDIT Unions want the law changed so that financial institutions can take a cut of delinquent borrowers wages at source to pay-off overdue loans.

Credit unions are coming under pressure as bad debts rise. As many as 121 of the 403 credit unions in the state are operating at a loss, according to figures supplied to the Financial Regulator by the Irish League of Credit Unions (ILCU).

The ILCU has circulated individual credit unions outlining its lobbying of the Department of Justice, Equality & Law Reform seeking the introduction of an alternative mechanism for debt enforcement.