Calls for credit union loan caps to be scrapped

Credit union customer loan caps should be scrapped to help the financial institutions overcome “very serious challenges” to their futures, the Dáil will hear today.

Fianna Fáil will make the claim as part of a two-day private members motion debate on potential reforms of rules governing the sector which, it said, is effectively sitting on €5bn worth of loans it is barred from giving out to customers.

Under current legislation, credit unions must operate under loan restrictions in order to ensure members’ funds are properly protected.