ILCU Statement in Response to the Final Report of the CUAC Report Implementation Group

Posted on: 07 Jan 2019

The Irish League of Credit Unions (ILCU) today, 7 January 2019, notes the publication of the report of the Credit Union Advisory Committee (CUAC) Report Implementation Group.
The ILCU welcomes in particular the clear statement by the Department of Finance “that the introduction of a balanced set of lending regulations in 2019, continued embedding of tiering in regulations and improved processes for engagement with the sector are core to closing out the work of this Implementation Group.” The ILCU looks forward to the Central Bank of Ireland’s completion of the review of the lending regulations for credit unions, which it hopes will be prioritised. 
The ILCU also welcomes the recommendation to raise the credit union interest rate cap from 1% to 2% per month, particularly in the context of the Personal Microcredit Scheme (PMC) loans. This will enable credit unions to compete more effectively with moneylenders, who charge much higher rates.
Commenting on this, ILCU CEO Ed Farrell said “Today’s report of the CUAC Report Implementation Group is another step in enabling credit unions deliver more for the communities they serve. In particular, the raising of the interest rate will offer headroom to credit unions to expand the PMC, and meet the administrative overheads associated with it. This scheme is designed to provide access to credit to the most vulnerable in our society, and to offer a viable alternative to moneylenders. Any measure that can assist with growing this initiative is a positive step.”