Small loans threatened by costs

Credit unions could be forced out of the small loans market by new costs proposed by the Irish Financial Services Regulatory Authority, says their representative body.

Loans of amounts under €600 account for about 35% of the Credit Unions’ business but the Irish League of Credit Unions has warned that the increase in costs would put them under serious pressure, and even force them from the market.

Spokesman for the league, Liam O'Dwyer, said that as the credit unions were the last credit service providers to provide such loans, this would mean its members may have to borrow from high interest money lenders.