So we agree that short term money lending is bad and there should be real alternatives for those who need to borrow. The thing is that Ireland has a great infrastructure of financial institutions that are part of their community and have responsibility at their core. They’re called Credit Unions.
Credit unions are a bit like your favourite winter coat you have had for ages. They are safe and always reliable – think Duffel coat:
Image: Wikimedia Commons
They have very little to do with post-modern architecture that even during these low cost times might cost you €3 million to buy. Something like this:
Image: Google Street View
Ah. Those good folk of Newbridge must have been going through a Medici phase and thought that building spaces which would last centuries would have secured their place in history. Well they got the bit about going down in history right.
What were they thinking of? Let’s just concentrate on the building for a while. The total population of Newbridge and its surrounds is 21,000. Let’s be crazy and overestimate those holding credit union accounts at 10%. That would give it 2,100 customers. Sorry, I mean shareholders. Surely there would have been someone somewhere who could have said, ‘Do we really need to spend that kind of money on a building?’
So if the building didn’t set off alarms, how about its borrowing practises? Lending money to property developers? The average loan coming in at €17,000 (while the national average for credit unions is €7,000) and not one voice going ‘hey guys maybe just maybe we should talk about this.’
Fast forward to Sunday evening and hey presto the tax payer stumps up €54 million to clean up the mess. Instead of grabbing this and saying nothing, we now have a ‘Save our C.U.’ action group. I’m sorry but this is one action group too far. I haven’t heard them ask questions on how the mess started. No wonder Naas C.U. ran a mile when they were asked to merge.
Despite all this, Credit Unions are a force for good. Don’t let this particularly sordid tale put you off. They are still the ideal place to start saving for France 2016 and the Roy ‘n’ Martin tour.
