Mullen condemns curbs on community credit

Speaking in the Seanad today Independent Senator Rónán Mullen today criticised the Central Bank for ordering over 200 Credit Unions to cut lending.

“Thousands of Credit Union members are being refused short term loans and the community credit system is being undermined,” Senator Mullen said.

“I have received disturbing reports that older people are being refused loans for cars, parents are being refused short term loans to defray family costs and some people have been denied loans to cover funeral costs. This undermines the community credit system completely. I am sure some Bank Managers are delighted that the Central Bank is using such a blunt instrument to restrict lending.”

Senator Mullen said he agreed with the League of Credit Unions that the Central Banks latest criteria on lending are unclear.

“These new rules will hit members of the community who have been part of their local Credit Union for years.”