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payday loans versus credit unions

  • 08-07-2013 12:27pm
    #1
    kristian12
    Registered Users, Registered Users 2 Posts: 361 ✭✭


    I was bored and browsing here and came across a post about payday loans and how daft people are to borrow from them. I actually couldn't find 1 apart from Provident that'd lend in Ireland.

    Out of curiosity i phoned the local credit union and asked if about borrowing €150 euro but i have no savings with them. I said it was them or Provident and was told tough luck we can't help you. Now if a person had savings they wouldn't need to borrow €150 :rolleyes:

    The attitude was amazing no wonder people end up paying extortionate rates back and ending up worse off.


Comments

  • #2
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    What do you want the CU to do? Just hand out €150 to people they've never done business with before?

    If someone needs a loan of €150 then it shows that they're probably not that good with money in the first place. If they're going to Provident, that pretty much proves it.


  • #3
    Anyone
    Registered Users, Registered Users 2 Posts: 3,376 ✭✭✭Anyone


    kristian12 wrote: »
    I was bored and browsing here and came across a post about payday loans and how daft people are to borrow from them. I actually couldn't find 1 apart from Provident that'd lend in Ireland.

    Out of curiosity i phoned the local credit union and asked if about borrowing €150 euro but i have no savings with them. I said it was them or Provident and was told tough luck we can't help you. Now if a person had savings they wouldn't need to borrow €150 :rolleyes:

    The attitude was amazing no wonder people end up paying extortionate rates back and ending up worse off.

    It's illegal for Credit Unions to lend to non-members.


  • #4
    kristian12
    Registered Users, Registered Users 2 Posts: 361 ✭✭kristian12


    MagicMarker wrote: »
    What do you want the CU to do? Just hand out €150 to people they've never done business with before?

    If someone needs a loan of €150 then it shows that they're probably not that good with money in the first place. If they're going to Provident, that pretty much proves it.
    Anyone wrote: »
    It's illegal for Credit Unions to lend to non-members.

    Not at all however no time was taken to assess why the money was needed or if it could be repaid. I was just curious because the credit union i called has warning signs up about using money lenders and says they are there for you instead.

    Ah but i am a member and have a current account with them that they can see money is paid into every month, i use it to pay dd, I just don't have much more than €10 in my shares account that i needed to open up at the same time.


  • #5
    Anyone
    Registered Users, Registered Users 2 Posts: 3,376 ✭✭✭Anyone


    kristian12 wrote: »
    Not at all however no time was taken to assess why the money was needed or if it could be repaid. I was just curious because the credit union i called has warning signs up about using money lenders and says they are there for you instead.

    Ah but i am a member and have a current account with them that they can see money is paid into every month, i use it to pay dd, I just don't have much more than €10 in my shares account that i needed to open up at the same time.

    But you said you had no savings with them in your first post. Did you point out the above when you spoke to them?


  • #6
    kristian12
    Registered Users, Registered Users 2 Posts: 361 ✭✭kristian12


    Anyone wrote: »
    But you said you had no savings with them in your first post. Did you point out the above when you spoke to them?

    Yes i did sorry i should have been clearer i meant no savings of any worth(very little). Yes i did point it out and the fact they see money going in every month but it made no difference.


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  • #7
    Anyone
    Registered Users, Registered Users 2 Posts: 3,376 ✭✭✭Anyone


    kristian12 wrote: »
    Yes i did sorry i should have been clearer i meant no savings of any worth(very little). Yes i did point it out and the fact they see money going in every month but it made no difference.

    Yeah you would only need to have 30-40 euro in the account to apply for a loan of 150. Anyway, weird, the vast majority of Credit Unions would discuss the loan with a member. No idea why they didn't with you.


  • #8
    kristian12
    Registered Users, Registered Users 2 Posts: 361 ✭✭kristian12


    Anyone wrote: »
    Yeah you would only need to have 30-40 euro in the account to apply for a loan of 150. Anyway, weird, the vast majority of Credit Unions would discuss the loan with a member. No idea why they didn't with you.

    Thats what shocked me, it was the unwillingness to even discuss it. It was a case of no savings no loan not even a mention of upping my shares.


  • #9
    P. Breathnach
    Registered Users, Registered Users 2 Posts: 12,089 ✭✭✭✭P. Breathnach


    kristian12 wrote: »
    Thats what shocked me, it was the unwillingness to even discuss it. It was a case of no savings no loan not even a mention of upping my shares.
    In your first post you gave people here the wrong idea about things. Might you have achieved the same with your CU?


  • #10
    kristian12
    Registered Users, Registered Users 2 Posts: 361 ✭✭kristian12


    P. Breathnach wrote: »
    In your first post you gave people here the wrong idea about things. Might you have achieved the same with your CU?

    Nope i'd be surprised because i gave my name and account number so she probably had it on the screen. As i said it was the uninterested attitude that shocked as i've seen the signs in there but it only seems to apply for regular savers. Trouble is in this day and age those numbers are dwindling so people might be tempted to turn to high interest loans.


  • #11
    No Pants
    Closed Accounts Posts: 3,347 ✭✭✭No Pants


    My local credit union (Swords) has provided me with loans, one at the beginning of last year and another just a couple of weeks ago. I have/had savings for just over 50% of the loan value each time, paying back weekly online. Application time for each was one week, which may be too long for some.


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  • #12
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,125 Mod ✭✭✭✭AlmightyCushion


    kristian12 wrote: »
    Thats what shocked me, it was the unwillingness to even discuss it. It was a case of no savings no loan not even a mention of upping my shares.

    You're asking for a loan. Surely, it's a safe assumption that if you are looking for a loan that you don't have the money to increase your shares.


  • #13
    michael999999
    Banned (with Prison Access) Posts: 7,771 ✭✭✭michael999999


    AlmightyCushion wrote: »
    You're asking for a loan. Surely, it's a safe assumption that if you are looking for a loan that you don't have the money to increase your shares.

    Not necesserily. some people would rather take out a loan for buying a car, rather than use there savings.

    You will pay back the loan every week, where as you might not replace the savings.

    Call it having a rainy day fund!


  • #14
    kristian12
    Registered Users, Registered Users 2 Posts: 361 ✭✭kristian12


    AlmightyCushion wrote: »
    You're asking for a loan. Surely, it's a safe assumption that if you are looking for a loan that you don't have the money to increase your shares.

    I get that but i suppose if they'd have said no sorry you need x amount in your shares to borrow x amount then i wouldn't have been shocked by the attitude of just no go away. It made no real difference to me as i was just curious and making an enquiry but my point was if this is the normal response then its no wonder why people turn to no questions asked type loans. No i don't expect them to just hand money over but when they claim to be for the people in the community then a little bit of courtesy in explaining whats needed wouldn't go amiss.


  • #15
    AlmightyCushion
    Moderators, Education Moderators, Technology & Internet Moderators Posts: 35,125 Mod ✭✭✭✭AlmightyCushion


    michael999999 wrote: »
    Not necesserily. some people would rather take out a loan for buying a car, rather than use there savings.

    You will pay back the loan every week, where as you might not replace the savings.

    Call it having a rainy day fund!

    In that case it makes sense but he asked the credit union for a loan for €150.


  • #16
    No Pants
    Closed Accounts Posts: 3,347 ✭✭✭No Pants


    AlmightyCushion wrote: »
    You're asking for a loan. Surely, it's a safe assumption that if you are looking for a loan that you don't have the money to increase your shares.
    The way they look at it is (a) they use the shares to secure at least part of the loan and (b) if you're able to save, you have disposable incoming that could be used to pay back the loan.

    That's the explanation my CU gave me.


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