# Feedback on Irish Credit Unions



## cruncher (17 Feb 2009)

Hi All,

I am doing a marketing project on the Credit Crunch & it's affect on Irish Credit Unions.

Please help with any feedback to my questions;

What is your opinion of Credit Unions in Ireland in comparison with banks & building societies

What associations do you make when you think of your local Credit Union?

What changes would you make to your local credit union in the current economic climate.


----------



## Lightning (17 Feb 2009)

cruncher said:


> What is your opinion of Credit Unions in Ireland in comparison with banks & building societies



For savers and lenders they almost always offer very poor value for money and should be avoided where possible. 

For savings many CU's offer 0% currently. The market offers up to 5.58% for lump sums. 



cruncher said:


> What associations do you make when you think of your local Credit Union?



My immediate association is with their likely clients, their background and their likely respective level of knowledge of financial products and the market.


----------



## ontour (17 Feb 2009)

> What is your opinion of Credit Unions in Ireland in comparison with banks & building societies


 
That is like comparing doing your weekly shop in Spar versus ALDI.  They serve completely different markets.  I use banks and credit unions for different purposes.  There are also no generic standards for credit unions.  Many of the credit unions where the common bond is a profession have good savings rates, cheap loans and low operating costs that make them far better than other providers of the same service.  Other credit unions have high operating costs, poor service, high loan rates and low savings rates. 



> What associations do you make when you think of your local Credit Union?


 
community based, involved, supporting low earning working class, flexible


> What changes would you make to your local credit union in the current economic climate.


reduce costs, get more involved with MABS and assist people in dealing with financial difficulties whether or not the money comes for the credit union


----------



## cruncher (20 Feb 2009)

fungus said:


> For savers and lenders they almost always offer very poor value for money and should be avoided where possible.
> 
> For savings many CU's offer 0% currently. The market offers up to 5.58% for lump sums.
> 
> ...


----------



## cruncher (20 Feb 2009)

Fungus,

Thank you for your reply. Could I ask you to take a minute to elaborate on your comment

 "My immediate association is with their likely clients, their background and their likely respective level of knowledge of financial products and the market."

what type of clientele do you associate with the credit union ? Your comments would really be appreciated?


----------



## cruncher (20 Feb 2009)

Hi Ontour,

Thank you for your reply. It has been most helpful. Your reply was interesting as I would like to get a perspective from somone who uses both Credit Unions and banks. 

It would be extremely helpful if you could take a minute to let me know why you are using both banks & credit unions. I feel there are so many people doing this but I just need to understand people's reasons for this. Obviously you are getting a need satisfied from each of them?


----------



## DubShelley (20 Feb 2009)

cruncher said:


> Hi Ontour,
> 
> Thank you for your reply. It has been most helpful. Your reply was interesting as I would like to get a perspective from somone who uses both Credit Unions and banks.
> 
> It would be extremely helpful if you could take a minute to let me know why you are using both banks & credit unions. I feel there are so many people doing this but I just need to understand people's reasons for this. Obviously you are getting a need satisfied from each of them?


 
I use a normal current account for my wages to go in and my mortgage and bills to go out of. This is purely for handiness sake as I have the ATM / LASER which can pretty much be used anywhere!

I also have a bank savings account which is high interest.

I use my credit union account for quick and easy loans to get me out of a rut. The main reasons I'd use the credit union for these types of loans is, 1. Once you have savings in there it is generally very easy to get a small loan, e.g. for car trouble, holiday etc. 
2. You have the easy option of paying over&above the agreed amount and paying off the loan early without any hassle.
3. Most credit unions open late at least 1 night during the week and for a few hours on a Saturday - a real bonus for us 9-5 people!

Hope this helps...
DubShelley


----------



## allthedoyles (20 Feb 2009)

I use both Credit Unions and bank............

My local Credit Union interest rate has always been around 11 % , whereas the bank  rate is around 8 % 

Of course all bank loans are set up by monthly direct debit and this is convemient when you are paid monthly .

Credit Unions are more flexible and offer both monthly DD and weekly payments . If i have spare cash , I find it useful to go to Credit Union and lodge extra repayment , especially with their opening hours , as they are open till 7pm Thurs and all day Saturday.

When working 5 day week ,( 8-5 ) banking hours are not convenient .

I also find it easier to 'top-up ' a loan in the Credit Union


----------



## Lightning (20 Feb 2009)

cruncher said:


> Fungus,
> 
> Thank you for your reply. Could I ask you to take a minute to elaborate on your comment
> 
> ...



This is a *generalisation*  ... 

I associate the likely Credit Union clientele as being
1) More rural based than urban Based. 
2) Less Savvy when it comes to financial products. 
3) Less Savvy when it comes to shopping around.
4) Perhaps, a people person who views banking as social interaction. 
5) Skewed towards the student and OAP age groups.


----------



## Lightning (20 Feb 2009)

allthedoyles said:


> When working 5 day week ,( 8-5 ) banking hours are not convenient .


 
Can you do your banking online?



allthedoyles said:


> I also find it easier to 'top-up ' a loan in the Credit Union



Do any banks offer top up facilities on loans ???


----------



## bananas (23 Feb 2009)

1. Credit Unions are more locally based, not for profit, 
2. I associate my Credit Union with convenience, it's work based so I can have money deducted straight from my salary, my Budget account is used for most household bills, loans are easy to get.
3. I would like to have more access on internet to my account and possible an atm card.  Also need to know there are strict accounting and supervisory procedures in place.


----------



## Padraigb (23 Feb 2009)

fungus said:


> This is a *generalisation*  ...
> 
> I associate the likely Credit Union clientele as being
> 1) More rural based than urban Based.
> ...



Some generalisation!

I consider myself reasonably savvy, and am happy to use my CU to hold some of my savings (no borrowings).

I factor in 
- a sense of community involvement, 
- convenience,
- views about ethical investment.


----------



## coquito (24 Feb 2009)

I am involved with a local community project  We had been banking with one of our top banks for many years and in 1995 we had €50,000 on deposit. We wanted to borrow money to build a new centre. We approached the bank looking for a loan. We provided whatever paperwork they required, we went so far as to offer signatures making ourselves responsible for repayment of the loan. To cut a long story short we got sick of them, they had messed us around for so long ,so we approached a local Credit Union. This was 1996. They invited us to a meeting. We presented our case and we came away from that meeting with an offer of a €50,000 loan and a promise of more if we needed it. We went back and borrowed whatever we required and had no problem. We built a fabulous new building which we moved into in November 1997. By 1999 we still owed more than €90,000. We did a big fundraiser and cleared our debt. During all this time the Credit Union never hassled us about repayments and supported us in every way possible. In fact two Credit Unions offered us loans at the time, the main reason I would think is that they knew the people involved and knew our track record. This, in my opinion is where the banks fell down in recent years. The personal relationship with the local bank manager was gone, Joe Soap was just a number, he wasn't big enough for the whizkids in the big metropolis. Long live Credit Unions.


----------



## allthedoyles (24 Feb 2009)

fungus said:


> Can you do your banking online?
> 
> 
> 
> Do any banks offer top up facilities on loans ???


 
To answer your questions as follows :


You can , of course bank online , however can you sign loan application forms online ?
IMO -- It is EASIER to 'top-up ' in C U


----------

