Published: Wednesday, 16th December, 2009 6:00pm

Credit Union to crack down on absconders

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Mullingar Credit Union is planning to crack down on absconders, or those refusing to pay loans, members were told at the body's AGM, held last Wednesday night.

While the committee of the Credit Union sought to reassure those struggling with their finances that they would be given every help, they also warned that absconding from or refusing to pay loans would not be tolerated.

The Credit Union now employs the latest tracing software which meant that one member was surprised to find a letter asking for payment arriving on his doorstep in Portugal.

"He was certainly surprised - but he did pay," said Jim Prendergast addressing Credit Union members who had gathered at the Greville Arms for the meeting.

"This credit union has never made a committal order to anyone who had fallen on hard times and could not pay. But to anyone who can and won't pay I would like to say to you that we will chase you to the butt of the wind.

"We are now using tracing agencies which are expensive but they are worth it."

Mr Prendergast also said that this year had been the busiest on record for the credit union's credit control committee and that the Mullingar branch had taken on two extra staff to try and reign in bad debts.

"One of the problems we have is that now because of financial legislation we cannot extend the loans over longer periods as we have been able to in the past.

"There are the people who have been good customers and have fallen on hard times and then there are those who have told us white lies about other loans and credit cards and have overstretched themselves.

"I would say to any member that is struggling to come in and talk to us and we will try to help you, particularly if you are a good member with a good history.

"I would also say that people should not use these loans management companies and should go to MABS. The money spent on paying these companies could be better used paying off debts. Go to MABS, we know them and they know us."

Mullingar Credit Union also confirmed that it would now be using the Irish credit Bureau to check loan applications in the New Year which would mean that applicants could not be financially overstretched as other debt commitments would be seen in the credit check.