August 30: Local credit unions and a duty of care

Your readers may have seen reports over the past week in the Irish Independent in relation to the use of illegal means by some private investigators to obtain information on credit union members. It is important to clarify in this instance that credit unions in Limerick are absolutely not ‘snooping’ or ‘spying’ on their members.

There is no denying that the ordinary people of Ireland are struggling with the impact of recession and austerity and broadly there has been an increase in the number of people who are finding it difficult to pay off their loans – this is evident across all of the financial services sector at the moment.

If a member finds themselves in financial difficulty, a credit union will do everything in its power to work with a member and will endeavor to find an acceptable solution by assisting with budgeting or rescheduling payments where possible, if a member is finding it difficult to meet their loan repayments.

A credit union has a duty of care to all of its members, whose savings fund the loans granted, to ensure that monies outstanding are paid back in full. Unfortunately, this does not always happen. Credit unions will make every effort to engage with a member in difficulty but unfortunately, in a small number of cases, the services of a tracing agent or private investigator may be required.

This is usually a last resort if a member has refused to make contact with the credit union. If a credit union does not recoup all of the money it has loaned out, this has a knock on effect for other members so it is vital that credit unions do everything in their power to contact members.

This does not under any circumstance mean that the use of illegal means is tolerated – we do not condone the use of illegal means to obtain information on members.

There are currently 25 credit unions in Limerick serving over 140,572 members.

Members should be reassured that their credit union continues to play a vital role in the provision of financial services in the local area. Unlike other financial institutions, credit unions in the Limerick area continue to grow through their services and their contribution to their communities.

Limerick credit unions are still providing loans and are welcoming new members every week.

In fact, over the past six months credit unions in Limerick have provided their members with €32 million in modest loans for ordinary things like third level education, cars, Christmas, communion and back to school. Credit unions are an essential part of the local community infrastructure today and are continuing a strong tradition in Limerick of co-operative self-help.

The future of credit unions in Limerick is of vital importance to the members that they serve and the communities they are based in. At a time when the banking and building society structure in Ireland has failed people and exposed citizens of this State to considerable additional liabilities, it is important that community and co-operative based, voluntary financial services structures are both recognised and encouraged.

The credit union movement has been built on the values of self-help, co-operation and service to members. These same values will provide the foundation for the future of credit unions.

As organisations rooted in the communities that they serve and just as credit unions had a vital place and role to play in the financial services industry in the past, credit unions today are still essential and are poised to play a vital role in continuing to help their members through the current economic times by offering crucial financial services as they have done over the past 50 years.

martin SISK

PRESIDENT, Irish League of Credit Unions, Lower Mount Street,

Dublin 2