They do. But the interest rate rebate usually just discounts the cost of borrowing slightly below the maximum of c. 12%+ APR while the dividends payable these days are usually around 3% gross at best and, as such, never going to make up the difference between how much could be saved by simply using the money in shares to reduce the amount that the individual needs to borrow.skydancer said:Nobody seems to take into account the Divedends and the interest rebate paid back into your account at the end of the year.
Fairly recent, as and from, appropriately enoughOriginally Posted by Clubman
Maybe the requirement that CUs quote APRs on loans is a recent one?
While some CU's impliment these requirements, it is changing. In the thread about 'the future of Irish CU's' Brendan referred to his CU fastracking membership requirements to facilitate loans to members.Originally Posted by Clubman
...requiring people to keep money on deposit or in shares while borrowing...
Yep! CU Act,1997 as amended...Originally Posted by Clubman
You mean the law governing CUs specifically?
It can be impossible to clearly explain somethings to some people. Sometimes it is the fault of the sender, sometimes the receiver, sometimes both! However since CU's are not-for-profit organisations I don't see the communication failures as a mechanism set up to rip off members.Originally Posted by Clubman
...not clearly explained to the borrower, then there certainly is a potential for a rip-off...
Originally Posted by Clubman(in another thread)
The fact that somebody doesn't ask/check beforehand means that they cannot claim to have been ripped off after the fact.
The co-operative nature (arguably somewhat eroded in recent years) of an organisation such as the CU movement is no defence against deliberate or accidental rip-offs. In any case most CUs branches and the ILCU employ full time staff so hiding behind amateurism is not on any more. Just look at the ill fated ILCU centralised computer system fiasco or the insistence by command central that CUs buy insurance through a single provider (which caused a few CUs to secede from the ILCU)? Or the way in which the CUs have colluded for years with members to shield funds from DIRT on deposit interest or income tax on dividends? All cases where CU members (including myself) and taxpayers were ripped off to the tune of millions either deliberately or through ineptitude.Crugers said:However since CU's are not-for-profit organisations I don't see the communication failures as a mechanism set up to rip off members.
Thats right! That's why I expanded on how members could be entitled to interest free loans in those cases where CU's knowingly charge or accept interest at a rate greater that 1% per month....no defence against deliberate or accidental rip-offs...
CU deposit accounts were not liable to DIRT until January 2002, CU's applied the law and didn't, until then, deduct DIRT. You wouldn't expect them to do otherwise? Now that these accounts are liable to D.I.R.T. it is deducted and remitted to the coffers of the state....CUs have colluded for years with members to shield funds from DIRT on deposit interest or income tax on dividends...
Since CU's are not responsible for members tax returns or the accuracy of the declarations made theirin they can hardly be implicated in ripping off taxpayers either deliberately or through ineptitude....taxpayers were ripped off to the tune of millions either deliberately or through ineptitude...
Darag has a calculator that allegedly...difficult or impossible to establish certain facts (such as the effective APR on loans taking into account the requirement to keep money in shares/on deposit)...
johnnybegood said:Hi just enquire about a credit union loan for 2k and this is what they qouted:
12 mths (52 weekly payments)
total payment €45 (split capital €38.46 and balance €6 odd interest)
He's paying €45 per week for 52 weeks (2 Years) so total repaid is €2,340.
The original loan was €2000 so interest is €340.
Interest as percentage = (340/2000)x100/2 = 8.5%.
Hi just enquire about a credit union loan for 2k and this is what they qouted:
12 mths (52 weekly payments)
total payment €45 (split capital €38.46 and balance €6 odd interest)
I have prepared this. On that basis the interest is 30%
TERMLOAN 30% PAID BALANCE€ € € €1 2,000 50.00 195.00 1,855.00 2 1,855 46.38 195.00 1,706.38 3 1,706 42.66 195.00 1,554.03 4 1,554 38.85 195.00 1,397.89 5 1,398 34.95 195.00 1,237.83 6 1,238 30.95 195.00 1,073.78 7 1,074 26.84 195.00 905.62 8 906 22.64 195.00 733.26 9 733 18.33 195.00 556.59 10 557 13.91 195.00 375.51 11 376 9.39 195.00 189.90 12 190 4.75 195.00 - 0.36
Am i missing something here how ridiculous is that!!!!
Same info based on 18 mths works out at 20.5% !!!! RIP OFF
TERMLOAN20.50%PAID BALANCE€€€€1 2,000 34.17 130.00 1,904.17 2 1,904 32.53 130.00 1,806.70 3 1,807 30.86 130.00 1,707.56 4 1,708 29.17 130.00 1,606.73 5 1,607 27.45 130.00 1,504.18 6 1,504 25.70 130.00 1,399.88 7 1,400 23.91 130.00 1,293.79 8 1,294 22.10 130.00 1,185.89 9 1,186 20.26 130.00 1,076.15 10 1,076 18.38 130.00 964.54 11 965 16.48 130.00 851.01 12 851 14.54 130.00 735.55 13 736 12.57 130.00 618.12 14 618 10.56 130.00 498.68 15 499 8.52 130.00 377.20 16 377 6.44 130.00 253.64 17 254 4.33 130.00 127.97 18 128 2.19 130.00 0.16 340.16
PLEASE SOMEBODY CORRECT ME IF I AM WRONG WITH MY CALCUALTIONS CAUSE THIS JUST SHOCKS ME. the most vunerable of people borrow from the credit union and this is the rates they charge. Then i read in the paper that ifsra have said they are better value for loans then anybody else!!! What a load of BS!!!
By the way the qoute was provided by west cabra credit union SHAME ON YOU!!!!
You realise the last post in the thread is over 5 years old?
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