Allowing credit unions charge as much as 2% a month for their loans could help prevent people from using hugely expensive money lenders and provide some competition to banks charging large amounts on credit cards, industry and consumer advocates have said.
Lifting the cap to 2% from 1% on the maximum monthly charge for credit union loans is one of the proposals in the final report by an implementation group set up by the Department of Finance.
It means the Government will prepare legislation enabling credit unions to charge annual rates of over 24% on the basis of an annual percentage rate on some of their loans if they so choose.
But Brendan Burgess, the veteran consumer campaigner, said the merits of the proposal include allowing credit u…
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