DUBLIN, Ireland–It isn’t just credit unions in the U.S. seeking to work with regulators to find ways to respond to the coronavirus. Credit unions in Ireland, which are reporting a 400% increase in calls from members, are also working with the government seeking regulatory changes that will allow them to better respond to the crisis.
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The Credit Union Development Association (CUDA) said it is critical to help borrowers who are experiencing financial difficulties, and estimated as many as 100,000 members in the country may be in a situation where they are or will be experiencing loss of income due to coronavirus, according to the Irish Times.
Credit unions in Ireland currently represent an estimated 34% of all consumer lending in the Emerald Isle. Credit unions are currently working with members on a case-by-case basis offering reduced payments, interest-only loans, loan extensions and other steps.
The Irish Times reported CUDA is currently in discussions with the Central Bank, which regulates credit unions in Ireland, to ensure capital requirements do not stifle any of the means by which it can assist members.
Calls Increase
CUDA CEO Kevin Johnson told The Irish Times it wanted to be able to ensure borrowers are not penalized for missing loan payments and that their long-term credit rating was not negatively affected.
“No one knows how long crisis measures will have to be in place, and it is difficult to quantify the full financial impact these measures will have on credit union members, the economy and, indeed, credit unions themselves,” Johnson told the Times. “So far calls to credit unions have increased by about 400%, with many calls from concerned members about their sudden loss of income and how they may be unable to meet some or all of their loan commitments.”
CUDA has created a web form to help standardize the requests process for loan repayment flexibility by members, and to enable individual credit unions to redeploy staff to assess and assist as a priority, the Irish Times reported.