THE EDITOR, Sir:
I WRITE in support of the letter written by Mr. R. Graham and published as your 'Letter of the day' on Thursday, June 17, under the headline 'BoJ: leave credit unions alone!'
Credit unions are co-operatives and should continue to be regulated by the Registrar of Co-operatives as they are now. They can only accept savings/deposits from their members and NOT from the general public. Hence, the involvement of the BoJ, beyond getting the usual monthly financial reports, seems unjustifiable and quite unnecessary. After all, credit unions have never needed any government bail-out in the more than 60 years of their existence.
The BoJ Regulations proposed to the credit unions, will quietly rule out 'pay-day loans', which is the collective buffer our members use to cope with everyday emergencies such as sudden hospitalisation of a family member, birth of a baby or contribution to a funeral.
COLLATERAL
It will also quietly rule out 'purchases loans' to buy a bed or a stove, because in the new dispensation, the items bought are not allowed as collateral for the loan. Members know their credit union as the place where they save to better their lives. More importantly it is the only place where they can get a small loan at the start, when their only collateral is their good name with their fellow members who will 'co-make' with them.
Our pooling concept of co-operation with each other should be encouraged not reduced. We now have a credit union league, through which credit unions can help out other credit unions in difficulty. Regrettably the proposed Regulations have written the league out of the picture.
The average savings of a credit union member is $26,000. He/she should be encouraged to save more. Credit unions should continue to be regulated by the Registrar of Co-operatives and allowed to keep their League which is helping to enhance their co-operative contribution to the development of Jamaica, 'Land We Love'.
I am, etc.,
DONALD MILLER
miller@cwjamaica.com
32 Gerbera Drive,
Kingston 6
