Central Bank regulators are enforcing tough new lending restrictions on Credit Unions, forcing many members to turn to other money lenders to obtain loans.
Regulators have capped lending at €100,000 per month for some Credit Unions meaning that many have reached their limit within the first 10 days of the month, said Silena Gileece of the Credit Union Manager’s Association. Other Credit Unions have been told they can lend no more than €5,000 to members at any one time.
The restrictions have been debilitating for many loyal credit union customers. Ms Gileece said that the restrictions on loans were forcing parents to pull children out of third-level courses.
In a letter sent to the Central Bank, the Irish League of Credit Unions stressed that such loan restrictions are preventing people from paying utility bills because “their credit union has been crippled in its ability to reschedule or extend their loan.”
The Credit Union Manager’s Association is calling for dialogue with the Central Bank regulators in light of these crippling restrictions.
Sources: Irish Independent, RTE.ie