Credit union chief attacks banks

BANKS should take a leaf out of credit unions’ books and focus their attention on providing for their customers rather than themselves, according to the head of the credit union movement.

Launching an attack on the commercial banking sector at the league’s biennial delegate meeting in Waterford, Mr John O’Regan accused banks of spending too much time complaining about credit unions.

He described banks as “fundamentally hostile to the movement”.

“Other financial services providers seek what they call a level playing field with credit unions. In this regard they continue to make representations to Government and the European Union on a range of issues in support of this objective.

"Their actions are out of all proportion to any commercial threat they perceive from the services provided by credit unions,” he said.

Mr O’Regan invited banks to play on their pitch and in accordance with the provisions of the Credit Union Act 1997.

“Among these are a statutory cap on interest rates, a ceiling on deposit taking, doing business within a defined area, doing business with their shareholders only, statutory control over investments, statutory control over the approval of additional services, insurance of loans at no extra cost to the consumer, and no remuneration to directors for their services as directors.

“This is our playing pitch and the record shows we have played well on it. Could I respectfully suggest that unless the other financial service providers are prepared to play on this pitch, that they would stop complaining about us and rather concentrate on perfecting play on their own pitch.”

Mr O’Regan said over the years, credit unions had availed of the banking services of main retail banks and in the process had contributed significant amounts to their profits.

“Credit unions are valued customers of these institutions. It is important the relationship going forward between our movement and the banking sector is based on mutual respect.

"We wish to do business within that framework rather than within a framework where the banking sector appears to be fundamentally hostile to our movement.”

Meanwhile, MEP John Hume appealed to credit unions planning to leave the Irish League of Credit Unions to reconsider their decision.

Mr Hume, who was being awarded a Life Directorship, also offered his services to mediate between the two sides.

And he urged credit unions which were planning to operate independently to think again and stay solidly with the league.

“These credit unions planning to leave should never forget the enormous contribution that the league and the movement have made to the economic development of this country, north and south.

"There is no more constructive or powerful organisation in the country than the credit union movement. It has done more good for more people than any other organisation,” Mr Hume said.

Mr Hume also praised credit unions for taking people out of the grip of “loan sharks” and ensuring that their money stayed in the community.