Concern over Council loan refusals 23.01.12

By Eamonn MacDermott, Inishowen Independent COUNCILLOR John Ryan has called on Donegal County Council to make clear whether or not they are ‘open for business’ as regards loans. He was speaking at the recent meeting of the Inishowen Electoral Area Committee after it was revealed that of seven applications last year six were refused and one deferred. Area manager Lynda McGavigan said that the Council is now bound to apply very similar criteria as banks do when assessing loan applications. She said that it was ‘quite difficult’ at the minute but added if someone wanted to discuss a loan application that they would talk to them. Ms McGavigan said that the number of loan applications to the council here was higher than for other areas. Cllr Ryan said that one couple received word last Friday that they had been refused a loan after applying in October 2010.

He said it was ‘very unfortunate’ that people would have to wait that length of time only to be refused. Cllr Ryan continued: “I always thought that we were the lender of last resort to the right people. But if we are applying the same criteria as the banks we will have to look at the whole situation.” He said the couple he was referring to wanted to get on the property ladder but couldn’t and that these were the sort of people the council should be helping.

Councillor John Ryan.

He went on: “We need to look at whether we are open for business or not and with six refusals are we open for business?” Councillor Paul Canning said that it was now nearly impossible to secure a loan and all the council was doing was giving people ‘false hope.’ Cllr Ryan concluded that before people could apply to the council they had to be refused by two other lending institutions and then they came to the council waited 16 months and were turned down. He said: “We would be better off saying we are not open for business as regards loans.”

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