Editorial: Credit union dismay over debt scheme is justified
Published 02/04/2014 | 02:30
ON the face of it, credit unions may appear somewhat unreasonable and obstructionist in frustrating attempts by the Central Bank to roll out a new scheme to help households with multiple debts. The scheme could see some heavily indebted households getting a writedown of some of their debts.
The Irish League of Credit Unions, the largest representative for the sector, is fighting a rearguard action to protect its member unions. Some credit unions and some bodies representing the sector have been involved in the talks on establishing a new multi-debt restructuring scheme, and the main banks have signed up.
But credit unions fear they will lose out because under the terms of the scheme arrangements would be made to prioritise the paying of the mortgage. Keeping people in their homes is a key public policy, meaning secondary debts may not get repaid.