Lobby against red tape for CUs

Kilcullen Credit Union has appealed to its members and their families to lobby public representatives against a measure which will add red tape and costs to the operation of credit unions.

The measure, in the Central Bank Bill currently under discussion, could prevent credit unions from giving their members traditional services.

The credit union movement says the proposed regulations are designed for banks, and shouldn't be applied to its constituent local groups. The movement, which has 2.5 million members nationwide, says the red tape which the new regulations will require is likely to prevent CUs from helping members with their financial problems at a time when this help is needed the most.

The credit unions say the red tape could prevent them from helping members reschedule their loans, or from paying dividends to members because these will be eaten up by extra costs.

The movement notes that the average loans to its members are a mere €9,000, and that credit unions have not, and will not, need taxpayer bailout funds. Nor will any of its members' loans be going to NAMA.