This report outlines the activities undertaken by and on behalf of the members of the Credit Committee during the past year.
The Credit Committee met for a total of 50 meetings during the past year. There was a quorum present at all meetings and loans were approved or rejected in accordance with the Loans Policy. There were a total of 6568 loans approved during the year totalling €18.3m.
The introduction of the special car loan rate of 7% in November 2004 proved to be a huge success, with €3.7m in loans issued during the year. We have also introduced a number of other “special rates” – holiday loans 8%, education loans 6%, computer loans 5.9%, during the year. You will find it hard to beat these offers on the market place. And, don’t forget that “free” life cover is included.
A growing number of members seem to borrowing very frequently throughout the year. As the greatest concern that the Credit Committee have when approving a loan is the member’s ability to repay, these members may find their credit limit – their ability to borrow any more – “capped”.
Some members unfortunately get into difficulties with their repayments. Their circumstances could have changed for the worse since they took out their last loan or indeed, they were so anxious to get their loan that they promised to repay more than they can now afford. We advise these members to come and see our Credit Control Officer for advice on how to deal with their problem. We are here to help.
Roscrea Credit Union is also bound by legislation, which is supervised by IFSRA, which lays conditions on our ability to approve loans over certain periods of time. This legislation puts limits on the percentage of loans we can grant over a longer periods. These limits are currently:-
20% of our loans can exceed five years, and
10% of our loans can exceed 10 years.
That is a total of 20% for all periods in excess of 5 years.
As this legislation came into force after many of our loans were granted in times when there were no such limits, Roscrea Credit Union finds itself in the position where we are in breach of these limits. We have improved from our position at last year’s AGM, but we have still a long way to go. As a result, in order to conform to legislation, we cannot offer loans for periods in excess of five years until further notice. Any member with an outstanding loan can only receive a “top-up” if he/she can repay the resulting balance within five years.
The Credit Committee would like to thank the CEO and Staff of Roscrea Credit Union for their help and courtesy during the year.
Jim Bolger, Dick Conroy, Paul Ryan, Hugh Keane.