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Sorry, can't pay...I'm on a cruise
04.10.11
by Linda McGrory
A CREDIT Union with a loan book of €15 million has
hit out at customers who are using the recession as
an excuse not to repay their loans.
Buncrana Credit Union in Co Donegal yesterday
accused a number of people of "abusing their
membership and their community" by failing to honour
their debts.
Sources close to the institution say it is becoming
exasperated with debtors who still maintain a luxury
lifestyle but refuse to pay back as little as €20
per week.
"We've heard of cases where people are being rung up
about their debt and their children answer the phone
saying, 'sorry, they're on holidays'," said one
member yesterday. "And it's luxury holidays abroad
we’re talking about.
"Then you'll have a small saver with a tiny loan who
would be on blood pressure tablets if they missed a
payment.
"Maybe they don't realise it, but this is their
friends' money, their neighbours' money," added the
source.
The credit union's chairman, Danny McGeehan,
confirmed that the institution was having problems
with a "small number" of debtors. It is understood
the debtors causing most concern number fewer than a
hundred and owe some €20,000 or less. A number were
involved in the construction industry but have since
felt the effects of the downturn on their
businesses.
A person owing up to €20,000 to the credit union,
who cites financial difficulties, may be asked to
pay back as little as €80 a month.
"It is sad to report that a small number of members
who are able to pay are simply abusing their
membership and their community by failing to make an
honest effort to repay their loans," said Mr
McGeehan.
He said the institution had recently begun taking
legal action against several people, with more cases
to follow in the weeks and months ahead. But he
insisted that borrowers who made genuine efforts to
repay needn’t worry.
"Members are well aware that, if they get into
financial difficulty, their credit union staff are
always there at the end of a phone or better still
in person, ready, willing and able to help them
agree a way out of their difficulty."
Buncrana Credit Union has been in operation for 40
years. It has almost 13,000 members with combined
savings of €49.5m and an outstanding loan book of
some €15 million. The institution employs eight
staff, two of whom were put on full-time credit
control duties as of yesterday.
Meanwhile, the institution stressed that its loan
book is performing well overall and that it remains
"strong, stable and open for business." It is
understood the Central Bank is closely scrutinising
the loans given by credit unions with some,
including Buncrana Credit Union, fearing they may in
future be amalgamated with others. |
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