Credit unions ‘too hard on defaulters’

OPPOSITION Senator Caswell Franklyn has accused credit unions of disadvantaging their members who default on loans.

Speaking yesterday in the Senate on the Debt Holder (Approval of Debt Restructuring) (Amendment) Bill, 2019, he charged that credit unions were enriching lawyers by taking their members who defaulted on loans to court, instead of taking them before the Financial Services Commission (FSC), which was a much cheaper and quicker process.

Franklyn, who sat on the supervisory committee of a credit union for many years, explained that under the Co-operative Societies Act CAP 171, a credit union could file a dispute and obtain a judgement from the FSC, against a delinquent member who defaulted on a loan.

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