FERMOY CREDIT UNION SECURES COURT ORDER TO RECOUP OVER €365,000
Fermoy Credit Union has been awarded over €365,000 in a court judgement during the month of July, one of the five largest registered by a credit union this year, writes Brian Moore.
The credit union, which has received the third highest judgement in 2011 so far, has seen its debt value increase by two thirds from €5.1million to over €8.6 million.
Manager Martina Cotter spoke to The Avondhu and outlined Fermoy Credit Union’s current position: “The credit union has a very strict policy on the action to be taken against members who do not make their loan repayments. All loans will be pursued through the legal system.
"There are two sorts of borrowers; those who are in financial trouble due to job loss, reduced income and other related issues who cannot make repayments in line with the terms of their agreement and others who just choose to default without making any real effort to repay the loans.”
“The members who are in trouble through no fault of their own have, in many cases, exemplary repayment records but are now finding themselves in a position where they are unable to maintain agreed repayments.
"In these cases the members are treated with the utmost of dignity and respect and a reduced repayment schedule based on their repayment capacity is agreed. We urge members who are experiencing difficulties to contact our credit control team at an early stage. Your financial difficulties will be dealt with sympathetically,” Martina told The Avondhu.
Ms Cotter also stressed that even if a member has a loan ‘written off’ they will still be liable for that debt.
“Fermoy Credit Union has redeployed staff into a new loans recovery department with responsibility for collection of written off accounts. There is a myth that if you don’t pay your loan the credit union will write it off and forget about it. This is not the case, and we will take every action necessary to ensure the debt is repaid. We have a duty of care to all members.
"Unfortunately, some borrowers who have repayment capacity have defaulted on their loan repayments and these loans are referred to the legal department. Fermoy Credit Union has a zero tolerance policy on members who ignore their responsibility with regard to loan repayments. Credit unions are community based financial co-operatives and loans not repaid are the savings of the borrower’s neighbours, family, friends etc, “ she added.
“The credit union has the resources in place to actively pursue outstanding debt and we will exhaust every avenue available to us. In some cases the credit union holds a legal charge or lien on property as security against loans.
"Fermoy Credit Union has initiated legal action to realise that security and sell property to repay the debt. It is always regrettable when this is necessary, but we take our responsibility to protect members savings very seriously,” Martina Cotter concluded.
Thursday 8th September 7:12pm