The Credit Union Managers' Association has called for dialogue between the Central Bank and credit unions as new rules are forcing many credit unions to adhere to strict new lending restrictions.
The association says many credit unions are receiving letters from the Central Bank informing them that their lending is to be restricted.
The new rules mean some credit unions are allowed lend a maximum of €100,000 to customers in any month. Restrictions are also being placed on the amount a credit union is allowed to lend a customer.
Silena Gilleece of CUMA says many credit unions are now reaching their lending limits within ten days of a new month.
She says it means many good and loyal customers are being turned down for loans, which forces many to turn to money lenders.
Ms Gilleece says while credit unions have been affected by the recession, they have weathered the worst of it so far. She also said they are experts in lending and know their members and their members' history.
