Joe1234 said:It is a big credit union, probably with too many staff. A number of years ago, loans were given out to all and sundry, and there is a belief around Monaghan that a large majority of these loans were given to non nationals, who skipped the country. They have implemented new procedures now, but the damage has been done.
Yes, that certainly rings true with me as well.Howitzer said:A search through any property related thread on AAM will throw up people giving and seaking advice along the lines of, if you want a loan that no one else will give you then go to a Cedit Union, oh and be sure to make sure they're not affiliated to the ICT, or whatever it is, so that the real banks don't find out about it.
Joe1234 said:there is a belief around Monaghan that a large majority of these loans were given to non nationals, who skipped the country.
Howitzer said:This sounds like nonsense. A case of "It be dem blacks dats ruined it fur de rest uf us", eh?
2Pack said:Which ignores the hard reality that the money was given out by Monaghan people who should have used their judgement better.
I'd say most of the bad debt is with locals who are still there. Better blame dem der non Moanaghaners all the same.
Joe1234 said:2Pack, I assume (and hope) that your use of the term Moanaghaners was a typo error.
I know of several Irish who took out 'car loans' and buggered off to Oz/NZ with the proceeds, with no intention of repaying the loan.ontour said:Anecdotally I have worked with foreigners in Ireland who borrowed from banks and then decided to leave without paying off the loan.
That is my worry in a nutshell Howitzer. The credit commitees do not know the borrowers (as much as they did) and the borrowers do not care about robbing their neighbours and friends (as as much as they did) and the whole system does not have the quality of volunteers to run and man the credit committee (as much as they did) so the proposition on which they are constructed breaks down , especially in Urban areas with large transient populations.Howitzer said:To accept that the principle of the Credit Union movement is no longer viable in Ireland due to a more transient population and a subsequent fall off in commuinity values would be a pretty sad thing, not to mention to financial implications, the fact that people who previously could only get loans from the Credit Unions would now have to resort to subprime lenders.
Glenbhoy said:I've never had any dealings with CU's - what advantage do they offer over banks? From my limited understanding, it seems to be that its a more personal service, wth the result that it's much easier to get loans, you then pay a slight premium for this. If the loans are insured, you would presume that the insurers are happy with the loan vetting procedures, but obviously there are problems, anyone fill me in on what the vetting procedures are?
MandaC said:A newspaper report I read stated that there was a large fraud ring (East European) involved in the Monaghan Credit Union debacle. People were taking out loans and then vanishing from their rented addresses (across the border). Not being from the area, I dont know how true that is??
I thought Credit Unions were only for relatively small loans.
Howitzer said:Defaulting on loans isn't something that's confined to any particular group.
For me the real issue is what could be a terminal decline of the Credit Unions. The Credit Union movement was always built on the notion of neighbours, friends and family in the local catchment area using their savings to give loans at very low rates to people who may not have been able to get any loan from the regulated financial instituions.
The reason why they were able to give these loans was trust. If you defaulted on your loan you were effectively robbing money from your friends and neighbours.
Ordinarily a Credit Union would only ever become insolvent in exceptional circumstances, local factory closing, somebody fiddling the books. You would hope that the Monaghan case has some such similar background. To accept that the principle of the Credit Union movement is no longer viable in Ireland due to a more transient population and a subsequent fall off in commuinity values would be a pretty sad thing, not to mention the financial implications, the fact that people who previously could only get loans from the Credit Unions would now have to resort to subprime lenders.
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