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CREDIT CONTROL COMMITTEE REPORT
The role of the Credit Control Committee involves monitoring all loan accounts within the Credit Union to ensure that loans are repaid as per their Credit Agreements. The committee is always conscious of members financial circumstances, the protection of members’ savings and regulatory requirements. The Credit Control Committee submits a monthly report to the Board of Directors and undertakes an annual review of the Credit Control Policy to ensure that it complies with legislation, standard rules and best practice.
There is a well-established, robust, step by step procedure in place to detect early arrears and to prevent future bad debts. Final stages of this procedure may involve the services of a debt collection agency and in exceptional circumstances, the pursuit of the debt through the courts.
It is always important to ensure that a distinction is drawn between those members who are genuinely struggling to repay a loan balance due to altered circumstances for example, illness, unemployment etc. and those members who can repay but are choosing not to.
Please note that failure to honour your credit agreement with the Credit Union will affect your personal credit rating with the Central Credit Register which will have a negative impact on future borrowing needs. Most members service their loans as per their agreements and those in financial difficulty are encouraged to make early contact with the Credit Control Committee to put an arrangement in place, mutually agreed by both parties.
In a small number of instances, where members are unable to make payments to cover loan and interest, these loans are transferred to the Bad Debt Ledger which is a statutory requirement. These members are encouraged to repay the loan capital outstanding within their financial means. The hard work of the Credit Control Committee in recovering previously charged off accounts is evidenced in the recovery of €365,872 in 2022 (€264,652 in 2021). This significant recovery also clearly demonstrates the commitment by members to honour their agreements.
The Credit Control Committee extends their appreciation to all members for their continued support of Kildare Credit Union, to the credit control officer Amanda, to the Board, Management and Staff for their help and assistance throughout the year.
Committee members:
Martin Burke, Madeline Purcell, Peadar Kearney
For the year ended 30 September 2022
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