Workplace credit unions criticised

A number of workplace credit unions have been hardballing borrowers and deducting payments directly from their wages as employees slip further into mortgage arrears.

The Free Legal Advice Centre (FLAC), said they had come across a number of cases where, due to their unique position, workplace or industrial credit unions such as those operating in the Garda and ESB, have been able to deduct money from borrowers directly from their payroll and even from former employees’ pensions.

FLAC senior policy analyst Paul Joyce said that these credit unions were operating attachment orders which are illegal in Ireland.