THE EDITOR: Sir
I READ with interest a letter written by Dr. Gardner of the Manchester Co-operative Credit Union on the stifling of credit unions.
Dr. Gardener, I am a former member of two credit unions and must say that the credit unions stifled themselves.
If the credit unions had kept to their original mandate of providing the poor and middle class with a sensible alternative to central banking, instead of competing with the banks, then there would be no need to consider regulations. The credit unions started playing in dangerous shark-filled waters and found that they were nothing but large docile fishes.
Consequently, the hook and the net caught them. Why are you crying now? I know at least one credit union whose interest rates in 2002 on loans, were well above those of the central banks! Check it out. Please remember that the banks pay interest on savings, a boast which the credit unions do not have, but the same credit unions expect exceptional returns on loans.
In addition, I know that securing loans from credit unions can prove quite a stressful exercise as the securities and collaterals needed to guarantee loans, prove quite trying.
Indeed, the credit unions as operated in present day Jamaica, are banks and should be treated as such. Sorry about 62 years ago. Those rules mean nothing to today's credit unions.
The maudlin appeal for a repeal of the implemented regulation, should not be heeded. First of all, the League needs to look at the operations of credit unions and reinstate their original mandate, seek to find out if the customers are satisfied and are justly treated, instead of trying to eat the cake and still have it. You are competing with banks on their banking footing. You need to follow the rules governing the banking sector.
I as a former credit union member, agree with BoJ's credit union regulations. Perhaps I might return to the fold.
I am, etc.,
JM FLETCHER
Irish Town
