Credit unions criticised for using private investigators

Credit Unions criticised for using private investigators


Judge brands debt-collection practice ‘unsavoury’

Anton McNulty

The Irish League of Credit Unions have defended the use of private investigators in relation to debt collection despite a local judge describing the method as ‘unsavoury’.
Judge Mary Devins made the comments at last Wednesday’s sitting of Castlebar District Court during applications by Claremorris Credit Union for substituted services in order to issue summonses against two members.
The court heard that a local private investigator was used in both instances. Judge Devins said that the application stated that the investigator had called to the home of one of the debtors on five occasions and made reference to the type of car that was parked outside the property.
Judge Devins commented that the Credit Unions were supposed to represent the public and should be looking after the public. She said by ‘rubberstamping’ these applications, district court judges were endorsing an ‘unsavoury’ type of debt-collection practice.
Judge Devins has in the past expressed her dissatisfaction with the use of private investigators. Mr Dermot Morahan, the solicitor representing the Credit Union, said her views had been passed onto the Credit Unions’ national legal representatives.
Judge Devins commented her views were ‘gloriously ignored’, and she refused the application, saying they gave her a ‘queasy feeling’.

Response
In a statement to The Mayo News in response to Judge Devins’s comments and observations, an Irish League of Credit Unions (ILCU) spokesperson said the use of private investigators was a last resort.
“Credit Unions have a duty of care to their members (who fund loans granted) to ensure that all these loans are repaid by the borrowing members. Unfortunately, this does not always happen,” the statement read. “Where members fail to make repayments, consistently avoid or lose all contact with their credit union, the credit union will then use every legitimate method at our disposal to re-establish contact with those members. If a credit union uses an external agency or investigator to seek assistance in locating or contacting a member, it is very much after all other attempts to establish contact with the member have been exhausted.”
The spokesperson added that ILCU is calling on the Government, as a matter of urgency, to address the issue of regulation in the private-investigation sector.
“The ILCU strongly feels that it is unacceptable that a situation prevails whereby private investigators are not licensed or regulated in this country, and we are pleased to see that the Private Security Authority has recently issued proposals for the regulation of this sector.”