Kells CU members borrowing €524,000 per month

Savings by members of Kells Credit Union increased by 4.8 per cent over the past year and now stands at €38.1 million, the recent annual meeting heard. The credit union will pay a dividend this year of 1.5 per cent on members' shares and one per cent on deposits. Chairman, Cathal Usher, told the meeting that the 90 day deposit accounts which have interest credited on a quarterly basis had proved very popular during the last financial year and were the main reason for the increase. He said the loan portfolio had dropped by 8.9 per cent in the past year and now stood at €18.9 million "This is due primarily to the economic downturn and our enhanced underwriting of loans, resulting in less loans being approved. The board of directors are responsible for the members' money and must always ensure they lend to members who can demonstrate the capacity to repay the money lent," he said. The credit union's surplus for the year amounted to €1,139,638, which is down on last year. The treasurer, Gerard O'Rorke, said the dividend paid this year was a very good return on savings, which are lodged in small amounts and are for the most part withdrawable on demand. "These rates are very attractive compared with rates currently available in the marketplace. In addition, all shares up to €12,700 are insured for most members at no extra cost," he said. Annette Lynch of the credit committee said members had borrowed approximately €524,000 per month over the past year, which showed the faith members had in the credit union. Brendan Heerey gave the credit control committee report in which he explained that the committee met with the manager and control officer on a monthly basis to review and discuss accounts which are in difficulty. He said they had employed a credit control officer who carried out house calls to members who did not respond to letters of contact from their office or who failed to co-operate with staff. He said the aim of the committee was to ensure immediate action was taken to get the member 'back on track' with repayments and to bring the loan up to date. "During these difficult times, we would urge our members who find themselves in a situation where they were unable to pay their credit union repayments to make contact with the office to discuss the account in confidence," he said. He said that, in 2009, the credit union became part of the bank clearing system and had introduced a current account which gave greater flexibility for members. The officers elected for 2010 were: chairman, Cathal Usher; vice-chairman, Michael Finnegan; secretary, Val Mulvaney; teasurer, Gerard O'Rorke; credit committee members, Annette Lynch, John Rogers, Teresa Olohan, Peter Kenny and Mary Bowler; chapter officers, Andrew Brooks and Anna Cunningham, and supervisory committee, Martin Arrigan, Ger O'Sullivan and Michael Smyth.