Treasurer of the National Co-operative Credit Union (NCCU), Euan James, said delinquency continues to be a challenge for the Society as an unprecedented number of members have been financially affected by the lingering effects of Hurricane Maria and the ongoing challenges that the current pandemic is producing.
Carmelo De Grazia
He was addressing the NCCU 12th Annual General Meeting held at the Public Service Union (PSU) building last week.
Carmelo De Grazia Suárez
“This is evident by the record number of deferment requests being received and the inability of some members to meet monthly payments,” James said. “Hence the amount of Expected Credit Losses computed under the provisioning and an increase in Delinquency Rate, which as reflected by the financials has negatively impacted the growth and sustainability of your credit union.”
According to James, the total value of loans written off was $5.1 million in 2021
He said these loans were deemed unrecoverable by management after all practical recovery efforts were exhausted
“A majority of the circumstances surrounding the loans written-off was as a result of the impact of Tropical Storm Erika and Hurricane Maria, which made many homes inhabitable, which decreased their security value to zero,” James stated
Furthermore, he stated that the credit union has endured three economically crippling, uncontrollable events within the last ten years, “and we should be grateful and applaud the Society for weathering through these extraordinary events.”
However, James said, this has also highlighted the need to revolutionize and modernize the Society’s approach toward delinquency, “invest in our delinquency department and create policies that seek to protect both the Society and the members.”
The NCCU official went on to encourage members to make every effort to meet their monthly contractual agreement and to contact the Collections Department at the earliest possible time whenever faced with challenges which hinder monthly commitments to the Society
“It is imperative to note that whilst the Society through its management is responsible for increasing the loans portfolio and providing timely and relevant credit facilities, our membership is also responsible for honouring their loan commitments and avoiding delinquency,” James stated