Just read an article in today's Sunday Business Post.I looked for a link online but it's behind a pay wall. Story goes that the Irish Banking Federation are going to prioritize mortgage debt over all other forms of debt. This would include credit card, car finance, store cards etc etc. But it would also include credit union loans.
It seems to me that banks are attempting to use their power and might to squeeze customers in mortgage distress to turn their back,or default, on the local community credit union loans. Is this fair. The banks are engaging in protectionist practices to protect their balance sheets to the detriment of savers and borrowers in the local credit union. If this is going to be the norm in debt restructuring of mortgages, this will mean serious losses for the credit unions. Which in turn will mean lower deposit rates and more crucially, higher interest rates. People getting loan for college, cars, holidays etc will now pay more interest because of the banks policy of looking after themselves.
Now I know everyone will immediately cry that the banks are right to protect the taxpayers investment. Fair enough. But credit union members are taxpayers too.
I think this is grossly unfair.
EDIT : Link here to a Davy discussion on the now protocols.