2% a month for CU loans ‘may help people in debt’

Allowing credit unions charge as much as 2% a month for their loans could help prevent people from using hugely expensive money lenders and provide some competition to banks charging large amounts on credit cards, industry and consumer advocates have said.

Lifting the cap to 2% from 1% on the maximum monthly charge for credit union loans is one of the proposals in the final report by an implementation group set up by the Department of Finance.