Credit Union can secure loan againster property in Donegal

WEXFORD Credit Union was within its rights to secure a loan given to a Crossabeg resident against a property in Donegal, Judge Gerard Haughton ruled.

The borrower came to the District Court to contest the move. She accepted that she owed just over €3,600 to the credit union and stated that she was paying this back at a rate of €20 per month.

Giving evidence for WCU, credit control manager Joanne Bennett told the court how the ‘top up loan’ had been given to the lady some years ago. It was intended to help provide a septic tank, electricity supply and water to a mobile home in Donegal. A search at the Land Registry confirmed that the debtor held the property there.

Ms Bennett said she understood the woman was in financial difficulties. She pointed out that, at the rate of €20 per month, it would take almost 15 years to clear the loan. It was necessary in the interest of the credit union membership to secure the loan, she argued.

When it was her turn in the witness box, the borrower said she had always paid her way. She had been almost 30 years with the credit union and was now living on invalidity pension.

The house in Donegal had been given to her by an elderly cousin, she revealed. She suggested that the loan repayment could be dealt with by a five year plan, with the help of her family.

This prompted Judge Haughton to tell her that how the money is repaid had nothing to do with the matter before him. Once she accepted she owed the money, the court had no choice but to grant the judgement.

The credit union was then at liberty to register this judgement against any property which she owned, he ruled.

The judgement was handed down, with the debtor ordered to pay legal costs of the hearing.

The woman’s response was to indicate that she would be appealing this ruling to a higher court. Judge Haughton advised her: ‘all I have done is confirm that you owe the money.’