Credit Control Matters

We thought it would be useful to share with you, the significant Credit Control matters to consider in dealing with this Pandemic.

• Credit Control policy needs revision to cover the practical scenarios of dealing with members applying for emergency loans due to the pandemic and those unable to meet existing repayments and looking for temporary relief 
• Options for Credit Control issues include: 
  • Complete repayment moratorium; 
  • Reduced repayment; 
  • Interest only payments; 
  • Formal reschedule; 
  • Share to loan transfers 
• Interest only repayments seem the most favorable as the Credit Union still has monthly income and there is no need for a new loan agreement but it depends on member needs 
• What has to be reported to CCR needs clarification 
• Identify your “at risk” clients using tools like CU insights and communicate with them individually to address their specific needs. 
• Consider the adequacy of resources within the Credit Control function to deal with increased member enquiries 
• Review and update the provisioning policy to deal with increased level of enquiries and ensure that adequate provision is made for bad debts in the monthly management accounts.

Contact Us:

Colm O'Grady - Audit & Business Advisory Partner 

Ronan Kilbane - Audit & Business Advisory Partner 

Michelle O'Donoghue - Audit & Business Advisory Director

Aine Dunne - HR Consultant