More bad debts, but CU 'safe and sound'

Kilcullen Credit Union had to 'write out' bad debts of €271,370 in the accounts ending 30th September 2011, an increase of €134,535 on the 2010 accounts, writes Brian Byrne. This was required to comply with legislation.

Presenting her Treasurer's Report at the recent AGM, Elizabeth O'Brien noted that this move represented 31 members' accounts, and necessitated increasing the Bad Debt Reserve by an extra €44,000.

But she also reported that bad debts recovered during the year amounted to €38,670, more than twice the amount in 2010.

She emphasised that Kilculen Credit Union is in a 'safe and sound state', and no loan restrictions of any kind have been placed on the Union by the Financial Regulator.

Costs associated with managing the Loan Book were €15,490 and new elements in the management expenses included the subscription of €2,829 for membership of the Irish Credit Bureau and €5,000 in Debt Recovery Service fees.

The accounts showed that investment income increased by €70,727 on the 2010 figure and all savings are covered by the Government Guarantee Scheme up to €100,000 per account.

No dividend was paid for 2011, the first time in the Credit Union's 41 years history. However, Chairperson Philomena Griffin said that, 'because of our prudent approach', 2012 will be a better year.



Click on the ad for details