Credit Unions - Obligation to assess creditworthiness

[Black_Adder]

SI 281 2010
EUROPEAN COMMUNITIES (CONSUMER CREDIT AGREEMENTS)
REGULATIONS 2010


Obligation to assess creditworthiness of consumers
11. (1) Before concluding a credit agreement with a consumer, a creditor
shall assess the consumer’s creditworthiness on the basis of sufficient information,
where appropriate obtained from the consumer and, where necessary,
on the basis of a consultation of the relevant database.

This above applies to all lenders lending over €200 and < €75,000 and applies to CU.

QUESTIONS:
(a) where does it say MUST or SHALL on getting documents from consumer;
(b) where does it say MUST or SHALL conduct a Credit Search
(c) Why do most Credit Unions demand:
- 3 pay slips
- your credit card statements
- your bank statements
- your mortgage statements
(d) Do you think the ole Central Bank could be trying it?
(e) Or is those awful opinionated Compliance peddlers?

 

[Willy Fogg]

They could give out money willy nilly but that way madness lies.

Credit is a privilege: it's hardly surprising that an institution does due diligence on the applicants past and ability to repay before giving it out, no?

For new customers there are also Money Laundering laws and know your customer concerns too.

 

[Black_Adder]

Willy - its simply over interpretation of what the legislation actually says.