DUBLIN, Ireland—Ireland’s Catholic parents are being forced into unholy financial alliances in order to pay for their children’s first Holy Communions, according to one analyst here.
Willie O’Dea, a social welfare spokesperson for Fianna Fáil, has called on the country’s Central Bank to ease up on tough regulations that are affecting most CUs here, which have been struggling. O’Dea said the crackdown has even affected loans for small items, such as loans for Holy Communion-related expenses, forcing borrowers to payday lenders.
"I believe that the Central Bank have gone overboard regarding red tape in relation to the provision of small credit union loans of €1,000 or less,” O’Dea told The Independent. “The Central Bank's requirement that extensive documentation such as payslips, bank statements, credit card details and mortgage statements are provided for these micro loans is proving excessive in my experience.”
The Ireland League of Credit Unions has embarked on a nationwide campaign warning parents preparing for Holy Communion to avoid moneylenders who usually charge excessive interest rates. The ILCU is also lobbying the Central Bank to ease the lending rules and awaiting an early response on the issue, according to the Independent.
Research done by the ILCU shows that one-in-five parents use credit cards, while one-in-eight use moneylenders, to finance First Holy Communion. The average family spend is €703.
"We welcome the statement from Deputy O'Dea, and we look forward to the Central Bank's review on current restrictions which will hopefully result in an easing of restrictions and allow more of our members to have access to this type of small affordable loan and prevent people from turning to money lenders at exorbitant interest rates," Ed Farrell, acting CEO of the Irish League of Credit Unions told the Irish Independent.