Credit unions hunt loan sharks

Credit unions launched an assault today on rogue money lenders preying on vulnerable people ahead of the traditionally high-risk Christmas period.

The Irish League of Credit Unions (ILCU) said it is “fighting back” after research showed high numbers of welfare claimants are in the grip of loan sharks.

Liam O’Dwyer, CEO of the ILCU, said: “The very reason credit unions started was to provide easy access to affordable credit for everyone who needs it.

“We have no intention of leaving the most vulnerable in our communities at the mercy of moneylenders, legal or illegal.”

The first phase of the country-wide Keep The Wolves From The Door This Christmas campaign will target borrowers in Tralee, Waterford, Ennis, Newry and Finglas.

Credit unions will be persuading them away from unscrupulous lenders, who are legally entitled to charge interest rates up to 188.5%. Illegal lenders charge more.

The ILCU highlighted research by the Centre for Co-operative Studies at UCC showing 39% of people at post offices on welfare payment days were indebted to lenders. Another 40% had to use money lenders in the recent past.

Both legal and illegal money lenders, charging very high rates of interest, are preying on the less well-off and the less financially-literate, according to Mr O’Dwyer.

“We want people to know that credit unions welcome them to come and talk about their money problems,” he said. “Credit unions are run by their members on a not-for-profit basis for the benefit of all.

“We want people to know that credit unions can help with their personal borrowing needs at the lowest rates for personal loans in Ireland.”