Consumers do not benefit from Christmas loans due to delays in processing credit checks with the Central Bank.

many credit union members and bank customers must now seek other sources of funds to pay for the festivities.

A recent survey found that one in three people will borrow money to finance their Christmas activities. Major sources of funding are credit cards, bank and group credit loans, store finance, and pawn shops.

The problem of denying people Christmas loans particularly affects those who need a relative to stand surety, due to repayment issues in the past.

The person applying for the loan may be in arrears on a previous loan or may not meet credit criteria for other reasons. It is not uncommon for people to arrange with a relative to guarantee the repayment of the loan, in the event of inability to pay it.

The move comes after the Irish credit bureau – the bank-owned credit reference agency – ceased operations. This means that all credit checks now have to go through the central bank’s credit register.

Until recently, credit unions and banks could use the Irish Credit Bureau to check the credit status of those who vouched for a loan taken out by someone else.

But the central bank’s credit register is not yet in place to allow lenders to check the creditworthiness of those who guarantee loans for others.

This means that lenders must tell those looking for loans to require the guarantor to register for a credit check themselves.

Since it takes two weeks to register for and process a new credit check, many lose out on getting loans in time for Christmas, an executive at a lender said.

The Central Bank has admitted that the turnaround time for a credit report is approximately two weeks.

“The recent increases in activity are likely to be the consequence of better knowledge of the Central Credit Register and a possible effect of the closure of the Irish Credit Bureau,” a bank spokesperson said. .

He added that the collection of personal and credit information on guarantors, although provided for by the law establishing the register, has not yet been begin.