A TRAVELLERS' bank or credit union should be established to help the travelling community escape the clutches of illegal moneylenders, a new report has suggested.
The new institution is needed because so many travellers experience problems accessing low cost credit, according to the report, "Access to Credit Facilities for the Traveller Community in the Greater Dublin Area". The idea is supported by almost half the travellers surveyed.
About 60 per cent of travellers borrowing over £100 went to a moneylender. Such loans were attractive because they required no security or formfilling but were usually paid back at a flat £50 a week, with an additional £50 penalty for each week missed.
A typical three year bank loan charged at 11.5 per cent APR (annual percentage rate) costs 183 per cent APR with a legal moneylender and more than 10,000 APR with an illegal moneylender, according to one example cited.
The report, which was compiled by a working party of travellers and agencies, says the "perilous" financial position of travellers requires urgent assistance.
Its authors, Mr Paul Quinn and Mr Thomas McCann, have called on the Department of Social Welfare to employ more staff to help the travelling community avail of existing facilities. The Department runs a money advice service for low income families, but only seven per cent of travellers surveyed knew about it.
Speaking at the launch of the report in Dublin yesterday, the Minister for Social Welfare said he was disappointed at the low level of awareness of the service, but encouraged by the fact that many travellers said they would use such a service.
"Access to credit and sound money advice should not be the preserve of any one section of society but should be a fundamental right for all citizens of the State," Mr De Rossa said.
The report found that 12 per cent of travellers could not write their own name, one quarter could not read basic instructions on medication, and 40 per cent could not fill out a medical card application form. Greater intervention was needed to deal with illiteracy before people could be expected to manage transactions with credit institutions.
