The credit union sector has stabilised and lending has increased, according to the Central Bank, although it added there was still pressure on the credit union business model.

A High Court ruling means restriction orders contained in the Companies Acts cannot be imposed on the directors of credit unions.

Up to 20% of loan applications in some credit unions are now coming through Facebook, a body representing the sector has said.

Consumer champions have criticised the Central Bank’s decision to begin operating its new national credit database without finalising the fees to be charged for its use.

A report by a leading academic has called for lending restrictions on credit unions to be eased in order to provide consumers with more mortgage options — for which there is “pent-up demand”, according to one of the sector’s biggest bodies.

Unless credit unions are permitted to broaden their business and current regulations are relaxed, they will not survive.

A group representing some of the biggest credit unions in the country said they plan to make a splash into the mortgage market, with €400m in new lending.

Housing support groups have broadly welcomed the Government’s housing plan, which has pledged to ramp up social housing supply, incentivise developers, and ease rental pressures.

Organisations in the social housing and construction sectors have backed the plan, but warned that it must be delivered no matter what government takes power in future.

Credit unions have more than €8bn in surplus funds which could be used to help address the social housing emergency, but have been prevented from doing so by the State, it was claimed yesterday.

Excess regulation is hampering credit unions’ ability to provide basic services such as debit cards to their members despite an EU directive aimed at ensuring those services are available to citizens in every country.

New rules from the Central Bank will severely restrict access to savings and credit, credit union groups have claimed.

It is likely some smaller credit unions will be merged as part of restructuring in the sector, the Credit Union Development Association's AGM has heard.

The Central Bank has said its pilot debt restructuring scheme will go ahead without the involvement of the Irish League of Credit Unions (ILCU).

Credit union branches have secured over €37m in court judgments against loan defaulters in the past three years.

For years they have helped promote the values of thrift in local communities but the credit union sector is fragile due to some poor lending practices in the boom and so many debtors being unable to repay loans, says Kyran Fitzgerald

Up to 100 credit unions may seek to merge to secure their future over the next four years, according to estimates.

The former chief executive of the Credit Union Development Association, Bill Hobbs, has said concerns that he raised about the future of the credit union movement four years ago "fell on deaf ears".

THE new Commission on Credit Unions will issue its recommendations for the long-term structure and regulation of the movement to Finance Minister, Michael Noonan in three months time, ahead of a more detailed report next March.

IRISH credit unions could face a combined loss of over €200 million on subordinated bonds held with Irish banks.

THE credit union movement has suffered a severe setback in its battle to curb the power of the registrar of credit unions to regulate the sector.

Regulator Mathew Elderfield, NAMA chairman Frank Daly and Justice Minister Dermot Ahern have ruled out debt forgiveness for ordinary people. All three raised the spectre of moral hazard without providing any substance to back it up.

THE Government’s stamp duty on credit cards has been labelled “uncompetitive” by a leading industry group, which claims it could stop new entrants coming into the market.

AS their roles come under even greater scrutiny a course has been developed to train credit union directors and supervisors.

BANKS racked up losses of almost €23 million last year because people were unable to pay their credit card bills.

MEMBERS of the Credit Union Development Association (CUDA) told a Dáil committee yesterday it believes the regulation of credit unions should stay within the framework of the existing Central Bank/Department of Finance structure.

TWO Galway credit unions have finalised plans to merge while others are considering similar moves.

CREDIT unions in difficulty should merge with larger operations according to a plan proposed for the movement.

CREDIT unions should be able to offer longer term loans to customers according to a report from the Department of Finance.

CREDIT unions in the North will be at a disadvantage if the Financial Regulator imposes a guaranteed savings protection scheme (SPS), the credit union movement has warned.

BILL HOBBS has been appointed chief executive officer of the Credit Union Development Association (CUDA), an organisation representing 20% of the Irish credit union movement, with 350,000 members and over €1.5bn in assets.

THE financial gospel according to money guru Eddie Hobbs was launched yesterday.

THE Irish League of Credit Unions (ILCU) faces a legal challenge if it continues to force members to take out insurance with a single insurance firm.