Credit union rules are boosting moneylenders

Since the Regulator decided credit unions could not longer advance loans to members in arrears with their mortgage provider, this cut off a valuable source of finance for those in need.

Traditionally, those who needed a few hundred euro to fix the washing machine, cooker or repair the car; Communion/Confirmation; urgent utility bills, etc, could ask their credit union, and once the ability to manage the extra repayment was established, the loan was granted.

Not any more, though. Any credit union member who is in such need but cannot satisfy the Regulator’s demand for a letter from their mortgage provider, confirming that they are not in arrears, (even when arrangements are in place to reduce any such arrears) will routinely be refused.

So where does the individual in need turn? To the moneylender, of course.

The Regulator (acting on behalf of the Irish Government) has removed the very discretion that credit unions were renowned for, and at the same time driven those most needing a small loan straight to the moneylenders.

I have no doubt that those responsible for this situation are well-heeled individuals with no money worries, and are delighted with their actions. Never before in the history of the state has a Government agency done so much to boost the trade of Moneylending.

A fitting epitaph for this Government.

Pat Jordan

Clondalkin

Dublin 22