Credit Unions get tough on defaulting borrowers

Brendan Burgess

Brendan Burgess

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From today's Irish Times reporting on the AGM of the Gurranabraher Credit Union:

It took 272 of its members to court last year.
It got committal orders for 59 people!
Two people actually went to jail.

Brendan
 
Gurranabraher CU certainly seems to have been .

Is the title of this topic a bit misleading - i.e. do those figures apply to this particular CU branch or the CU as a whole?
 
Credit Unions now have even tougher bad debt rules to apply each year which places a greater strain on performance(they have to add to reserves). The growing amount of bad debts means they have little option but to take defaulters to court. There are a number of solicitors firms specialising in this sort of debt collection which removes the "local" dimension from the collection process.

Slim 8)
 
I saw the Annual Report from the Firhouse Credit Union, which has had it's own problems in recent years. Fortunately I'm not a member.

The ratio of Bad Debt's to Total Loans looked frightening, I think it was in the region of 30%. At the time I wondered if it might be a Typo.

-Rd
 
Yep ..some pretty unsavoury things happening at Gurranabraher Credit Union.. their AGM's are flared with emotion & anger over the last couple of years due to lavish spending by the management, poor bad debt management & recoup, poor return on dividends. Some of the management were suspended & it went to court...

Even of late the Gardai were called in to investigate how a member of staff were in a position to open a dummy account & siphen off some money into it.

This plance could have done with IFSRA many moons ago.
 
I see that they gave one member a loan of 127,000 when he had 127EUR in savings [broken link removed]
 
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