The Central Bank has secured a hearing date of December 11 next to seek the removal the gagging order imposed on itself and the former board of directors of Newbridge Credit Union after the appointment of the special manager nearly two years ago.
“We applied to the High Court for a hearing date and that has been arranged for December 11,” said Nicola Faulkner with the Central Bank.
“A decision will then be made.”
If approval goes ahead it will give the Central Bank full reign to publish the reports of the Special Manager, Luke Charleton of Ernst and Young and free up the former board of directors to have their say since NCU’s demise and transfer to PTSB last month.
Meanwhile Newbridge Town Councillor Micheal “spike” Nolan has called for consideration be given to capping the interest rates charged by moneylenders in the wake of the transfer of Newbridge Credit Union to Permanent TSB.
Cllr Nolan worked in the money lending industry for four years but left in 2004 due to his discomfort with the high interest rates being applied.
“The true scale of this problem is extremely difficult to estimate because as well as 40 licenced moneylenders operating here, an unknown number of unregistered and unscrupulous lenders are also offering loans at unsustainable rates,” he said.
“I am raising this issue now because the incidences of people turning to moneylenders is bound to be on the rise in the run up to christmas, locally in Newbridge with the loss of the credit union people may feel they have no other options opened to them, to access cash for the festive season. Newbidge is wide opne now after what happened with the Credit Union.”
Cllr Nolan is calling for the introduction of legislatoin to control what he claims as ‘excessive interest’ rates being charged.
“I believe it is imperative that serious consideration is given to this issue now, before UK firms such as Wonga set up here.
“We have seen in the UK how so-called payday lenders can have crippling consequences on families and communities. This is already replicated here. Taking just one loan from a moneylender can drive an individual into unsustainable debt due to spiralling interest rates.”