BANKS are making it unnecessarily difficult for local businesses who are trying to defer loan payments during the Covid-19 crisis.
That’s according to County Limerick Fianna Fáil TD Niall Collins who says that businesses are facing pages of paperwork and long lists of questions when applying for a three-month deferral.
“Businesses across Limerick, and right across the country, are trying to get to grips with their new reality. Many have seen their cashflow seriously diminished and are finding it difficult to stay on top of their overheads,” Deputy Collins explained.
“Last week we saw the main banks on a PR drive telling customers that they would facilitate loan deferrals for a number of months. The reality being faced by businesses is somewhat different, however.”
Deputy Collins says he fully accepts that banks have to carry out the necessary checks before adapting loan terms and agreements. However, he points out, that these are exceptional times, and companies which were profitable last month are now struggling to meet wage and operating costs.
“These are companies, which will hopefully make it through this crisis, but they need assistance and understanding from the banks to do so.
“My party had previously called for the main banks to freeze all commercial and business loans. Not only is this not happening, but the main banks are subjecting businesses to a lengthy engagement process to decide whether they will defer the loan. Other lenders are not doing this.
“Irish banks need to step up to the plate and ensure that businesses can be protected during the COVID19 pandemic so that they can continue trading once this crisis abates,” he added.
Meanwhile, Sinn Féin’s Maurice Quinlivan TD has described the charging of quarterly fees by AIB on the accounts of customers who have just lost their jobs as a disgrace. He called on AIB to cancel the fees charged and refund customers who have lost their jobs.
“Tens of thousands of workers who lost their jobs as a result of the Covid-19 outbreak, will receive their first COVID-19 Pandemic Unemployment Payment of €350 this week. This payment will be needed for workers to pay their bills and feed their families.
“It is disgraceful to learn that AIB, instead of providing relief to these customers, decided to charge quarterly fees to many of these customers who have just lost their jobs,” Deputy Quinlivan commented.
“These fees do not apply to customers with more than €2,500 in their accounts, but if you have just lost your job as a result of this outbreak they do. That AIB are charging workers and families who have lost their jobs and have little in their accounts these fees is a disgrace.
“I have been in contact with a scores of constituents here in Limerick who have lost their jobs and were relying on today’s payment of €350 to get them and their families through the week. This morning they were hit with quarterly fees by AIB of up to €100 in some cases.
“The Covid-19 Unemployment Payment was not intended for the banks, and this pandemic should not be an opportunity for banks to squeeze more out of their customers,” he declared.
