Killarney Credit Union here to help parents with back-to-school costs
The number of parents saying they are struggling with back-to-school costs is on the rise. A new national survey has found that more than three quarters of parents (78%) find the costs a financial struggle. This is a substantial 11% increase on last year.
The findings were revealed in a new, national survey by the Irish League of Credit Unions. Half of parents said meeting costs was their biggest back-to-school related worry. One third said they would be forced to deny their children certain school items this year because they could not afford them. Extracurricular activities and new school shoes were amongst the items to be cut from the budget this year.
Karena McCarthy, Youth & Marketing Officer of Killarney Credit Union said the credit union is all too aware of the struggle for parents this time of year. “We frequently assist parents in the South Kerry community around this time of year who need help either budgeting for the back-to-school spend, or taking out a loan to see them through. It’s understandable that these costs are a financial burden for so many when parents are paying €949 per primary school child. The spend is even higher for parents with secondary school children who are forking out and €1,399 per child. We want parents to know we are here to help, if only to have a chat about how they can budget for the upcoming spend.”
The survey also found that there was a slight drop (1%) in the numbers approaching moneylenders. Parents saying they are relying on credit cards to cover the back-to-school spend also decreased by 5%, falling from 18% to 13%.
“We consistently try to provide financial education to parents in the xx community and inform them of the extremely high interest rates charged by moneylenders. We are happy to see a fall in the numbers going this route, but still concerned that 3% of parents will approach moneylenders in an effort to cope with costs. Our message would be to chat to us first in the credit union before making this decision. Using moneylenders can result in a recurring cycle of unnecessary debt and panic borrowing” said Karena.
Karena continued; “If for example a parent opted to take a Killarney Credit Union Back to School loan instead of using a moneylender, the APR rate would be 8.5%*, compared to rates of over 100% which some moneylenders can charge. Our loan is typically approved within 48 hours and there are no hidden transaction fees or charges. As always, we are happy to work with parents to structure repayments in a way that suits their individual circumstances. We are more than happy to assist anyone who might need a little extra financial assistance at back to school time.”
* For a €1,500, 1 year variable interest rate loan with 12 monthly repayments of €130.62 an interest Rate of 8.2%, a representative APR of 8.5%, the total amount payable by the member is €1,567. Information correct as at 16/7/19
-ENDS-
For more information, please contact Helen on 064-6623730 or 087451800
To apply for a One Year Loan here
The finals of the Reserve Cup, Over 35's and Premier took place on Wednesday sponsored by Killarney Credit Union. It was a very wet evening in Woodlawn but a very entertaining one. The Reserve Cup winners were MD O'Shea's Park Road 5 and Dean Machine 3. The scorers for MD O'Shea's were John McDonagh hat trick Chris Brady and Stephen Hayes 1 goal each. The goal scorer for Dean Machine was Mikey Casey with a hat trick.
Over 35 Jimmy Brien's Bar 1 Tim Jones Older Butchers 2. Dan Cronin scoring the 2 goals for Tim Jones Older Butchers and Mark Griffin scoring for Jimmy Brien's Bar.
The Senior Premier final went to penalties with The Failte Legends winning out 2 1 on penalties to Last Picks. It was 3 all at the full time whistle with Danny Roche scoring all 3 goals for The Failte Legends and Ryan Carroll, Mike Milner and Cian Tobin scoring 1 each for Last Picks.
Gary Keane Captain of The Failte Lengends received the coveted Kieran Cahillane Memorial Perpetual Cup for Player of the tournament presented by Jason.
(l-r) Joe O’Toole (Chair, MetaCU), Shane Foley (Killarney Credit Union), Denis McCarthy (CEO, Fexco)
Killarney Credit Union join Metamo – a joint venture between 16 of Ireland’s largest Credit Unions and Fexco
Metamo will deliver improved service and products to Killarney Credit Union’s 34,000 members
• Metamo represents a €10 million investment in the credit union movement
• Credit unions joining Metamo represent over 480,000 members
• Metamo will support credit union sustainability and improve efficiency
• Research and development of new products and services for credit unions, supporting them in offering a wider range of financial products to their members
• Establishing a central shared services hub to improve delivery capability for credit unions
4 July 2019: Killarney Credit Union is one of 16 of Ireland’s largest credit unions who have today announced a €10 million collaboration with Killorglin based international financial technology company Fexco in the formation of a new joint venture to be named Metamo.
Metamo is a 50:50 joint venture between the 16 investing credit unions incorporated under the name MetaCU and Fexco, one of Ireland’s largest financial services companies. MetaCU credit unions represent over 480,000 members from across the country – and in Kerry to Cara Credit Union’s 43,000 members and 34,000 members from Killarney Credit Union - and combined assets of over €3billion (c.19% of the sector).
The primary objective of Metamo is to support credit union viability and sustainability through the provision of a more complete and modernised suite of financial products including enhanced lending capabilities. Metamo is also uniquely positioned to develop more efficient operating systems for credit unions in areas like process improvement, risk management and technology delivery.
Mark Murphy, CEO of Killarney Credit Union said:
“This is an exciting day for Killarney Credit Union and I am convinced that this joint venture will allow us to provide an improved service and set of products to our members in South Kerry. We are delighted to work with our neighbouring credit union, Cara Credit Union on the Metamo venture.
The delivery of this project with international fintech company Fexco, headquartered in Killorglin, means we can offer an enhanced service offering allowing us to keep pace with other financial service providers.
Speaking about the launch of Metamo, Minister for Finance Paschal Donohoe TD, commented:
“Credit unions hold a unique and special standing as one of the most trusted brands in the country. They continue to provide invaluable services to local communities promoting financial inclusion. I am delighted to see collaboration within the sector that will support its continued viability and sustainability. Members of all credit unions stand to benefit from the enhanced products and services, more efficient operations and improved service delivery that Metamo will provide. Collaborative efforts for the sector can come in many forms and I am encouraged by, and supportive of, the many projects designed to drive the sector forward, including the venture being launched by Metamo. I would like to congratulate the credit unions and Fexco on this initiative and to wish them every success into the future.”
The initial focus of the venture is on collaboration between Fexco and the investing credit unions to identify and develop products and solutions required by members. Metamo will offer these solutions to all other credit unions in the country who are not part of the joint venture in order to sustain the continued development of the sector.
Joe O’Toole, Chairperson of MetaCU – the entity comprising the 16 credit unions investing in Metamo – said:
“Metamo brings unprecedented scale to any previous sector initiative and signals a new and exciting development in the financial services industry. The company will deliver new income streams and improved processes for the investing credit unions and has the potential to transform the entire sector.
“We identified Fexco as our partner based on their familiarity with the sector, having provided foreign exchange services to credit unions for over 20 years. In addition, we will benefit from Fexco’s technical expertise and commercial delivery focus. For Metamo, Fexco is a natural fit.
“The multi-million euro investment by the credit unions and Fexco in the establishment of Metamo is a significant vote of confidence in the future of these credit unions.”
Denis McCarthy, CEO of Fexco commented:
“Participating in Metamo allows Fexco to leverage two of our key strengths; strategic investment and new product development. Like the credit unions, Fexco understands the value of supporting local communities, indeed we remain loyal to Killorglin where the company was first founded, employing approximately 1,000 staff there today. We enjoy a longstanding relationship with the credit union sector in Ireland having provided foreign exchange services to them for over two decades. I look forward to broadening the scope of that work through the establishment of Metamo which, through strong collaboration, will ultimately safeguard the sector while delivering better products for members.”
Metamo is based in Kerry with offices in Dublin. The company is currently actively recruiting its senior management team having appointed Neil Hosty as CEO in 2019. Neil has over 20 years’ experience in the financial services sector and has held various senior executive positions in the Irish and US banking sectors.
Credit unions are held in high regard by Irish consumers, providing the best customer experience in the country according to Amárach Research, and topping the 2018 Reptrak survey measuring the level of public trust in an organisation.*
More information is available at www.metamo.ie
Why a credit union car loan is better than a PCP
Close to four in ten consumers in Ireland will buy a new car in 2019. Over half plan to spend more than €10,000 on their new set of wheels, according to the most recent Carzone Motoring Report (2018). The study also found that one in four consumers who spent between €10,000 and €20,000 on their previous car, used a credit union car loan to fund the purchase.*
Credit union loans have always been popular amongst car buyers for their straightforward terms and conditions and flexibility, and look set to be a top choice again in 2019. Indeed, credit unions, such as Killarney Credit Union, are lent out over €5.5 million in car related borrowing in the past 12 months.
Helen Courtney Power, Business Development Officer of Killarney Credit Union explains why she feels there has been a renewed interest in the traditional car loan. “A credit union loan is transparent and carries no hidden fees or charges. The buyer owns the car outright once they buy it, while with other more complex finance options, such as a PCP agreement, the buyer has effectively hired the car for a period of time while they make payments. At the end of the PCP agreement, they will have to make a balloon payment in order to actually own the car, which can prove to be quite the financial sting in the tail if it hasn’t been budgeted for.”
The Carzone report however also found that 72% of people who had spent more than €20,000 on their last car had used a finance options such as a PCP agreement. So while PCPs can be complicated, have a raft of additional charges and a good deal of inflexibility, they are proving popular with car-buyers in the over €20,000 market. Could this be down to the fact that a lot of consumers don’t fully understand what they are signing up to with a PCP?
“For many people, headline rates on PCP agreements can at first look more attractive, but these can easily distract from the fact that essentially PCPs are lease schemes and the buyer will need to be conscious of the mileage they are racking up, because the balloon payment, or guaranteed minimum future value (GMFV), of the car will have been calculated with their annual mileage in mind” Helen explains.
“In contrast, with a car loan from the credit union, the buyer simply borrows the money to pay for a car, which they own immediately, and which they can drive as much as they please. They can also sell the car on at any time they wish, should they need to, whereas they do not have this option with a PCP. Credit unions are ethical lenders. We will work with our members to structure repayments that suit their individual circumstances. At Killarney Credit Union our car loan is available at an affordable APR rate of 7.8%**, and is typically approved within 48 hours. We also offer car insurance to make the whole process as convenient as possible for our members. I would really encourage anyone thinking about going the PCP route to have a chat with us first at Killarney Credit Union before making the final decision. We are happy to see all our members, no matter how long it has been since they did business with the credit union, and of course we are always happy to chat to anyone who has never been a credit union member.”
Helen also says potential buyers should familiarise themselves with the below checklist before signing the dotted line on a PCP agreement:
• Be aware that to extend the term of a PCP you may be charged a rescheduling fee.
• Take note of the cap on the number of miles/kilometres you are allowed to clock up over the period of the contract.
• You may be requested to commit to certain car servicing agreements.
• Ensure you always enquire about additional fees and charges, you are entitled to a list of all additional charges so ask the garage for this before you sign any agreement.
*Carzone Motoring Report 2018
** For a €10,000, 5 year variable interest rate loan with 60 monthly repayments of €200, an interest Rate of 7.49%, a representative APR of 7.8%, the total amount payable by the member is €12,019. Information correct as at 19/12/2018.
