Calling all credit union members

CU MembersVoice

Hi

I am looking at setting up a new representative group called "CU Members Voice" to promote change in the credit union movement in Ireland in the best interests of all credit union members. I feel this is necessary for the following reasons (list not exhaustive):
1. The "common bond" system means that you can only join a credit union based on where you live or work and member service levels differ vastly from credit union to credit union. This should be changed.
2. The credit union governance structure is antiquated. Members must attend an AGM to exercise their vote. This should be changed to enable higher democratic participation
3. Credit Unions operate as independent organisations with massive duplication of expenses which is not in the best interests of members
4. Loan interest rates and dividend on savings vary from credit union to credit union - this means that some members have access to good products and others do not, depending on a members address or occupation
5. The credentials of credit union board directors varies greatly from credit union to credit union

The current governance model in credit unions will not or cannot address the issues above as individual Boards of Directors have no mandate to effect change outside of their own credit union. The main umbrella organisation for credit unions in Ireland, The Irish League of Credit Unions (ILCU) is run by a Board of Directors drawn from directors of individual credit unions who merely perpetuate the narrow interests of their own credit union resulting in a serious leadership deficit at national level.

I would be interested in the thoughts of other credit union members on the issues outlined above and the merits of setting up a new representative group

iora_rua

I think something should be done about the difference in interest rates from branch to branch. It's very frustrating to see the ads in the local papers with, say, a three percent difference between your local town's CU and another not all that far away.

On the other hand, I've had reason to be very grateful to our local CU, which was recently willing to arrange a crucial small loan when the bank wasn't interested. Credit Unions are a great invention!

parent01

hi, I am interested in finding out the lending criteria of credit unions in Ireland.My brother borrowed a large sum of money from our local credit union in 2008.The loan was 197 times his share balance. Needless to say he wasn't able to pay it back when the crash came and now they have a judgement mortgage against him.

we went as guarantors but only discovered after the event that he had serious gambling issues.They are now coming after us.We are not a portioning blame on them but only trying to establish the lending criteria and are coming up against a brick wall with the local branch.

We are worried and would welcome any assistance.

Here's hoping somebody will listen out there

Henry Ford III

I think you are wasting your time parent01.

He borrowed the cash, having had the loan approved (part of that being your guarantee). He defaulted and the security is now being called in.

The lending policies aren't relevant I'd have thought.

coylemj

Henry Ford III wrote: »

The lending policies aren't relevant I'd have thought.

+1 You went guarantor, it was up to you to protect yourself by querying why the guy was borrowing and what he was going to do with the cash. No point in trying to shift the blame back on the CU now.

This is the problem we have in this country, people who recklessly borrowed money have it in their heads that it was all the fault of the lending institutions. Sorry but I resisted the pressure from friends to go out and 'leverage the equity' in my house to help to inflate the property bubble and ultimately cause the market to come tumbling down so I have no sympathy for people who couldn't resist easy access to cheap credit and then went wild spending it.

End of rant.

p.s. Accept the responsibility for your actions.

parent01

I am only looking for the lending criteria, so at least some compromise before it really gets out of hand.Hands up we signed the guarantee.

I am glad to hear you never borrowed any money in the "so called boom" but you are one of the lucky ones and hopefully you will always be as lucky.

If only people had your insight and foresight at the time.thanks for your help.

By the way "he threatened suicide if we didn't help" Death or Debt. You can judge now.

Jim2007

parent01 wrote: »

I am only looking for the lending criteria, so at least some compromise before it really gets out of hand.Hands up we signed the guarantee.

He failed to meet their criteria, that is why they required your guarantee! So it really does not matter what it was... it can not be argued that money was lent to him in reckless manner - it was not, they made sure they had a solid backer!

parent01 wrote: »

By the way "he threatened suicide if we didn't help" Death or Debt. You can judge now.

If this really happened, then you should have gone for the third option - seek medical help if you felt he was serious.