This insurance cover provided by Dubco at no direct cost to members will discharge an eligible member’s LOAN LIABILITY existing at the time of death provided that s(he) met certain terms and conditions at time of loan issue. These terms and conditions can be summarised as follows:
- Loan liability up to €5,000 is automatically insured for members and the maximum cover is €75,000 per member up to the age of 69 and €30,000 for members aged between 70 and 79.
- All cover (including the automatic cover) ceases at age 80.
- Loan Protection Insurance is subject to a Pre-Existing Condition Limitation.
Pre-existing Condition Limitation
If a member dies within 6 months of drawing down a loan and had been diagnosed or was being treated for a medical condition within the 6 months prior to the loan draw down, no Loan Protection Insurance will be paid.
This only applies if the member actually dies of the condition diagnosed and only applies to the amount drawn down in the pre condition period
What is the Irish Credit Bureau?
The Irish Credit Bureau (ICB) is the principal credit reference agency in Ireland and was established in 1965 by a number of financial institutions. The objectives of the ICB are:
- To assist in lowering the cost of credit
- To enable faster decision making in the provision of credit
- To aid in avoidance of over indebtedness of its members customers
The vast majority of Lending Institutions (including many credit unions) in the state are members of the ICB.
Why is Dubco a member of the Irish Credit Bureau?
The Board of Directors has a responsibility under Credit Union and consumer credit legislation to safeguard the assets of the Credit Union and also to ensure that members do not become over-indebted.
ICB membership will assist in minimising bad debts and other costs of credit and ensuring that as much information as possible is obtained to assess a member’s ability to repay a loan.
What information does the Irish Credit Bureau hold?
Most lenders in Ireland send information about borrowers and their repayments to a central agency, ICB. The ICB holds information about borrowers and their loans for 5 years after the loan is cleared. This information is held in an individual credit record that is kept by ICB about each borrower. Your credit record includes:
- your name, date of birth and address;
- the names of lenders and account numbers of loans you currently hold, or that were active within the last 5 years;
- repayments made or missed for each month on each loan;
- the failure to clear off any loan;
- footprints from other lenders enquiring about your credit record within the last 12 months.
Frequently Asked Questions about the Irish Credit Bureau
Question: Is my Lender allowed to check my credit record?
Answer: Only with your consent.
Question: What information is available to Dubco from the Irish Credit Bureau (ICB)?
Answer: Details of current borrowings and loans that have been repaid or closed in the last 5 years for all ICB members are shown in response to an ICB enquiry. Details include the loan amount, category and repayment history. The database also shows footprints of enquiries made by other ICB members in the previous 12 months.
Question: What information is available to the ICB from Dubco?
Answer: Only where the member has consented, the Credit Union provides the same information to the ICB as other ICB members. This does not extend to loans taken out or repayment histories prior to the Credit Union becoming a member of ICB. However, where a loan incorporates an existing loan (i.e. a top-up), the new balance is the figure disclosed to ICB. Confidentiality and disclosure of your personal information is subject to the Data Protection Acts 1988 & 2003 and the Credit Union Acts 1997 – 2012.
Question: Will an ICB report affect my ability to get a loan?
Answer: The main factors in determining whether or not a loan is your ability to repay. In common with other lenders, the Credit Union may request information about your income, employment status, living costs and existing loan repayments to help decide whether you can afford to repay a loan. An ICB enquiry is another source of information relevant to a lending decision.
Question: How do I see my credit history?
Answer: A member may contact the ICB website (www.icb.ie/) to either apply online for a copy of their credit report or to download, complete, sign & return to ICB an application form, with a fee of circa €6. Members may also contact ICB by phone (01 260 0388) to request an application form by post.
What is the Central Credit Register?
Under the Credit Reporting Act 2013 lenders are required to provide personal and credit information for credit applications and credit agreements of €500 and above to the Central Credit Register. This information will be held on the Central Credit Register and may be used by other lenders when making decisions on your credit applications and credit agreements. The Central Credit Register is owned and operated by the Central Bank of Ireland. For more information see www.centralcreditregister.ie.
What should I know about Dubco loans?
The two most important things to know about Dubco loans are:
1. There are plenty of funds available to be lent to members.
2. Funds are lent on the basis of a member’s ability to repay, not on the amount they’ve saved.
What interest rates are charged?
Dubco’s personal loan interest rates charged are variable and based on term, purpose and/or amount. The standard rates range between 6.99% and 8.99% (as set out below) and special promotional rates may be announced from time to time (like our fantastic Special Car Loan Rate of just 5.97%). Use our loan calculators above to compare rates.
What is the difference between the 2 interest rates listed for each loan type? I don’t understand APR.
The first rate listed is the nominal rate, and the one in brackets is the APR. Let’s consider the loan rate for repayment periods of between 1 and 3 years for example (7.99% nominal rate / 8.29% APR).
The APR (8.29% in this example) is the Annual Percentage Rate which is an example only, based on monthly repayments, and is included so that members can compare interest rates with other financial institutions. The APR rate is based on the amount of interest charged on the initial balance drawn down (that is the total loan issued) and does not factor in the reducing balance.
The nominal rate (7.99% in this example) doesn’t account for the frequency at which payments are made (i.e. weekly, fortnightly, monthly) or any fees or charges that may be a part of the loan (i.e. application or acceptance fees). However, because Dubco loans don’t have any fees or charges apart from interest and because Dubco charges interest only on the outstanding balance on a daily basis, the nominal interest rate given (7.99%) is the more accurate reflection of the interest rate charged.
If I pay off a loan with Dubco early will I be penalised?
No, Dubco charges interest on the outstanding balance on a daily basis. This means only accrued interest where unpaid would be due. There are no fees or charges for early repayment.
I have never applied for a loan with Dubco, what’s involved?
The application process will include standard questions regarding the purpose of the loan and details of your household income and outgoings. As part of this process Irish Credit Bureau consent will be requested from you. Following your application a member of staff will be in touch with you within 3 working days with an update on the application.
The following list of supporting documents will normally be required for all loan applications:
- Three (most recent) payslips
- Documentary proof of any other household income
- Bank statements for all accounts held for the last three months
Loan Officers may request additional information as deemed appropriate.
I don’t understand what you mean, what sort of an update?
Loan applications are reviewed by the Loan Team. The Loan Team may be able to approve an application if it’s within certain limits and meets the relevant criteria, if not, they may require further information / clarification from you. If further information is needed someone will contact you for the required details and let you know when there will be a decision on the loan. If a loan cannot be approved by the Loan Team it will be considered by the Credit Committee, which meets weekly. Following the Credit Committee meeting you will be contacted with the result of your application.
What should I do if I am experiencing difficulties with my existing loan repayments?
We encourage any members who are experiencing financial difficulty to contact our Loan Team who will, where at all possible, assist in putting together a plan. Rescheduling is an area that Dubco takes a serious view of because of the implications for both the member and the Credit Union. With any reschedule application there has to be a demonstrated need for rescheduling; it is for the member to prove that their current agreement cannot be adhered to.
Members requesting loan rescheduling are requested to attend a meeting with representatives from our Loan Team. This is an important part of the process as it’s important that members understand the implications of rescheduling loans. This meeting also allows us to provide members with alternative options and a larger discussion around their income and expenditure.
All requests for loan rescheduling are considered by the Credit Committee, which meets on a weekly basis. Following the Credit Committee meeting you will be contacted with the outcome of your application.
What are the implications if I reschedule a loan?
As a result of a reduction in repayments a member’s loan balance is refinanced over a longer period of time. This will result in additional interest being paid overall.
Refinancing will also affect a member’s future ability to borrow, as a member’s ability to repay is the primary factor in lending decisions. In addition, in accordance with Section 35 “Regulatory Requirements for Credit Unions” Dubco are unable to extend further credit to members who reschedule their loans with Dubco for a minimum period of 12 months, except in certain specified emergency situations and subject to further terms and conditions as set out by the Central Bank.
There’s been a lot of talk about personal insolvency, what’s it all about?
The Personal Insolvency Act 2012 (let’s just call it “the Act” from now on) introduced three new debt resolution tools, or more simply put alternatives to bankruptcy, to help people with unsustainable debt to reach agreements with their creditors. The Insolvency Service of Ireland (the “ISI”) is the body created by the Act to address these arrangements – their objective is to restore people who are insolvent to solvency in a fair, transparent and equitable way.
What are the new alternatives to bankruptcy?
If you are unable to pay your debts and do not see yourself being able to do so in the next few years there are three options:
- Debt Relief Notice (“DRN”)
The write-off of debt (generally unsecured) up to €20,000, subject to a 3 year supervision period and net disposable income of €60 or less a month. You are not eligible for a DRN if you own assets (including property) valued at more than €400. In addition it should be noted that applicants must not have incurred 25% or more of these debts during the past 6 months.
- Debt Settlement Arrangement (“DSA”)
The agreed settlement of unsecured debt, with no limit involved, normally over 5 years. Certain unsecured debts cannot be included and certain other unsecured debts require the consent of the creditor prior to being included.
- Personal Insolvency Arrangement (“PIA”)
The agreed settlement of secured debt up to €3 million (though this cap can be increased) and unsecured debt, with no limit involved, normally over 6 years.
Each of the above options are subject to an applicant meeting certain criteria. Which option is right will depend on how much the applicant owes, the type of debt, the applicant’s income and assets. The ISI, following consultation, prepared and has issued guidelines as to what constitutes a reasonable standard of living and reasonable living expenses.
The Act will also introduce automatic discharge from bankruptcy, subject to certain conditions, after 3 years as opposed to 12 years at present.