# Threatening letter from Credit Union



## doc48 (29 Jan 2009)

Your thoughts please on the following :

My daughter has missed her monthly credit union payments since November 08 due to other financial hardships. However, she is now just about able to start paying back her outstanding balance, and should have it up to date within the next 2 months. She recieved the following text in a letter from the credit union signed by the credit controller.
I didn't think the Credit Union sent such letters and I was suffice to say, a little taken back by the wording of it.

*Dear XXXXX*

*RE Acc No XXXXXXXXX*

*" You are running right into trouble ignoring your obligations.*

*Sometimes drastic action is taken to effect recovery on overdue accounts.*

*Action which could lead to a summons for your arrest and imprisonment.*

*Do you want to spend some time in Jail ?*

*Contact the writer now to sort out the arrears of €xxxxxx*

*Act now to avoid further action. "*

*(signed by the credit controller)*

Any thoughts and advice on this will be gratefully recieved.

Thanks


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## nacho_libre (29 Jan 2009)

Did your daughter approach the Credit Union explaining her financial difficulties? 

If she did then I would agree that this letter is way over the top, but if she just 
chose to not contact them at all then It would not shock me that she received 
such a letter. 

That's just my opinion. They are usually very understanding and compromising 
when you approach them, but if you don't approach them then what measures 
can they take besides sending "unsavoury" letters to members.


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## ontour (29 Jan 2009)

Had your daughter approached the credit union and expalined her situation last November or has she just not paid for the last couple of months?

The wording is harsh and the reference to jail extreme but credit unions are often seen as a soft touch that people treat with less respect than other lending institutions. This was probably just one of a large stack of similar letters from the credit union looking to protect the many members.


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## doc48 (29 Jan 2009)

Hi.
Thanks for both replies. My daughter didn't contact them since before Xmas (totally wrong).However, I'm really just concerned how they just didnt issue a warning regarding putting it into the hands of their legal people. I can't understand how this person who wrote it can put themselves up to issue threats like this.I'm amazed. She has been a member for the last 3 years with solid repayments through out.

Thanks Again


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## davidoco (29 Jan 2009)

If they used this man to deliver the letter than that would be over the top.

http://www.carlow-nationalist.ie/news/story/?trs=mhojeyqlgb&cat=news


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## doc48 (29 Jan 2009)

Excellent....I get the point.


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## Eblanoid (29 Jan 2009)

davidoco said:


> If they used this man to deliver the letter than that would be over the top.
> 
> http://www.carlow-nationalist.ie/news/story/?trs=mhojeyqlgb&cat=news



Looks like (old) crime does pay!


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## cleverclogs7 (29 Jan 2009)

usually the c.u send out a reminder letter and if its ignored then they'll probably go the next step.(the letter she got) the wording is not on.I would tell your daughter to approach the supervisor about this.has she ever had problems repaying before ?
the c.u are good in ways of repayment.if your in financial trouble they help with lowering your payments every week.


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## Dee101 (30 Jan 2009)

doc48 said:


> Hi.
> Thanks for both replies. My daughter didn't contact them since before Xmas (totally wrong).However, I'm really just concerned how they just didnt issue a warning regarding putting it into the hands of their legal people. I can't understand how this person who wrote it can put themselves up to issue threats like this.I'm amazed. She has been a member for the last 3 years with solid repayments through out.
> 
> Thanks Again


 
So your daughter hasn't paid her loan since before xmas, it is now the end of January and she hasn't even bothered to get in touch with the Credit Union to explain to them why she stopped paying/when she intends to start paying again?. And you are "amazed" that she received a letter from them about it and the implications of it!.
Sorry I don't mean to be smart but what on earth does she expect?. I'm sure if your daughter contacts the Credit Union and explains everything to them they will be more than accomodating but as you said yourself, ignoring it does not help and unfortunately will lead to "threatening" letters like the one she received.

And by the way, someone mentioned Credit Unions being a soft touch. That couldn't be further from the reality - they would have you sent to prison quicker than any of the Banks!. Several Credit Unions had people jailed last year for not honouring their debts. Banks will often obtain Committal Orders as a last resort but will rarely, if ever, enforce them - Credit Unions will enforce them in many cases (as a last resort)


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## Padraigb (30 Jan 2009)

doc48, you invited us to share our thoughts with you.

First, your daughter should not have broken her repayment agreement without discussing arrangements with the credit union. It is the function of the credit controller to chase up late payers or non-payers.

For a first reminder (if it was a first reminder) the letter is a bit too strong. I would say that to the manager, but would regard saying it as no more than giving a friendly word of advice.


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## Chris (30 Jan 2009)

As pointed out before, your daughter should have been in contact with the credit union months ago.

As for the wording of the letter, I think it is completely unprofessional, tabloid style vocabulary, regardless of whether it is the first or second letter. I would seriously have to question the intelligence and competence of the writer!


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## Bronte (30 Jan 2009)

I think the letter is very blunt and to the point.  It's not couched in the lovely legalese a bank would use.  If this is the first letter and your daughter had a 3 year good record it is indeed too much.  I imagine the credit controller is up to his eyes in defaulters currently and is now sending out these letters as standard.  You could take it as a wake up call to your daughter to get her act together.   The credit union is perceived as a soft touch by some in relation to defaulters but this is far from the truth.  But they are great if you go into them and talk.  Your daughter was at fault for not doing this.


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## lasabrci (30 Jan 2009)

The wording of the letter is strong but everyone in arears from that credit union will have got the same letter.  Credit unions are flexible with members who encounter difficulties with repayments. As mentioned before the key thing is to come into the credit union imediately you see yourself getting into trouble and explain your changed circumstances. It is usely easily sorted out.

Credit unions can be tough if you ignore your agreements with them.  The board of directors have to face the members every year at AGM and justify the performance of the credit union - bad debts are always an issue that get members backs up


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## doc48 (30 Jan 2009)

Many thanks to all your replies. I have advised what needs to be done and the CU concerned has been contacted. However, I have strongly suggested that the brance manager be made aware of the  
ridiculous wording of said letter.

Thanks Again All.

Doc48


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## ivor james (31 Jan 2009)

Did I hear just today that a single mother has gone to jail for 32 days because she owed the credit union 5k? An absolutely ridicoulous state of affairs when you consider all these bankers who owe their shareholders Billions wont ever spend a minute in prison,but there you go its always easier to put the little guy away. I would say however it is always prudent to contact your creditors when problems arise,face them head on as I did myself,things are clearer that way.


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## Dee101 (31 Jan 2009)

doc48 said:


> Many thanks to all your replies. I have advised what needs to be done and the CU concerned has been contacted. However, I have strongly suggested that the brance manager be made aware of the
> ridiculous wording of said letter.
> 
> Thanks Again All.
> ...


 
That's good Doc48, I meant to say lastnight that the wording of the letter is perhaps a little eh....unusual. In fairness though, the credit unions are not as polished an operation as many of the banks or other such institutions so I suppose their letter got to the point in rather a blunt manner. At the end of the day though, it got the message across which was its purpose!. And although you haven't clarified , I would bet that letter wasn't the first letter received. I would imagine there was a gentle reminder or several sent before this letter.
Anyway, I'm glad your daughter is getting things sorted. It's a bad time financially for so many people at the moment, but the absolute worst thing you can do is bury your head in the sand, it makes things ten times worse.


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## liketoknow (31 Jan 2009)

Dee101 said:


> So your daughter hasn't paid her loan since before xmas, it is now the end of January and she hasn't even bothered to get in touch with the Credit Union to explain to them why she stopped paying/when she intends to start paying again?. And you are "amazed" that she received a letter from them about it and the implications of it!.
> Sorry I don't mean to be smart but what on earth does she expect?. I'm sure if your daughter contacts the Credit Union and explains everything to them they will be more than accomodating but as you said yourself, ignoring it does not help and unfortunately will lead to "threatening" letters like the one she received.
> 
> And by the way, someone mentioned Credit Unions being a soft touch. That couldn't be further from the reality - they would have you sent to prison quicker than any of the Banks!. Several Credit Unions had people jailed last year for not honouring their debts. Banks will often obtain Committal Orders as a last resort but will rarely, if ever, enforce them - Credit Unions will enforce them in many cases (as a last resort)


 We all get the point that the OPs daughter should have contacted the credit union. But the question was did we think the wording of the letter is suitable, and no it is not suitable. Asking someone if they would like some time in jail !!! The person who wrote the letter seems to have little, if any experience in writing letters of this kind. I myself worked in credit control and our letters sent to customers oweing the company were pretty standard, ie , one type of letter reminding them they owed the money, this would then be followed up with a phone call if no payment was received within 28 days, then a final letter stating that if the money due was not paid in 7 days , that the account would then be handed to a legal debt team. The op is not shocked at her daughter receiving a letter about the money, the shock comes from the way the letter was worded.


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## MandaC (31 Jan 2009)

We are definitely in the midst of strange times.  I have been involved in debt collection for years and would never dream of sending out something worded that way.

It reads like something from the Sopranos.  I dont have a problem with what they are trying to get across to potential defaulters, but that wording is just plain silly.


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## TLC (31 Jan 2009)

The wording is just plain wrong.  The person who composed it should not have used that wording.  I would advise your daughter to go into the credit union, explain her situation & come up with a workable re-payment plan.  I would advise her not to dwell on the letter, but make it clear how upsetting it was & how disappointed she was to receive it - but move on & stick to her new payment plan.  And best wishes to her for the future.


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## cleverclogs7 (31 Jan 2009)

I was driving up north yesterday to do some shopping.on the radio was a talk about how s****y the irish goverment is and  there was one guy who told how he knows of a lady who had a 5,600 dept with the credit union.couldnt make payments because of job loss and was put into prison for 4 weeks.he also said that it costs the tax payers 300euro a day to keep one person in prision :O so it would have been better for the taz payers to pay her dept.would have saved tax payers 3,400e.another guy was sent to prision for a week.he didnt pay his parking fine of 80e because he was in hospital for 1 week .cancer patient.so he was put in jail costing the tax payers 2,100e . dont get the system.


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## HighFlier (31 Jan 2009)

The wording of the letter is completely unacceptable. I would suggest the OP and daughter get some legal advice as it is tantamount to extracting monies by menance.

I would also get a list of the names of the trustees/directors of the CU and circulate them with the letter asking if they want to be associated with its sentiments.

I would also request that the author be fired.


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## Padraigb (31 Jan 2009)

Highflyer's proposal is as much over the top as was the original letter.

I think that writing an ill-judged letter should not be a sacking offence.


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## Vanilla (31 Jan 2009)

It's a surprisingly threatening letter if it is really a first letter. I've worked for several different credit unions and all of those had exact procedures in place for debtors. The first was usually a gentle reminder letter ( because everyone can make an honest mistake), the second was a stronger letter ( nothing like the one quoted here), the third was a person to person contact with the debtor. After that it was handed over to the solicitor. 

As for the stories about people being sent to jail- usually a committal order is made only where either the person didnt turn up or they did turn up, the judge was satisfied they had the means to pay by installments and was further satisfied that they were deliberately not paying despite this. No-one who comes to court and proves they do not have the means to pay would be sent to jail.


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## Luckycharm (2 Feb 2009)

Before getting a committal order you have many chances to pay/make arrangements- first you have to get a judgement, then generally a sheriff calls around rarely getting anything. Then you get an installment order this is where the debtor can come to court and plead their case and the Judge decides how much they pay each month it might only be €5 a month and the debtor has to consent to this. 
Then if the debtor still does not pay then you can persue a commital for contempt of Court. This can take over 2 years. In my experience over 90% of debtors do not show up for Judgements or Installment orders.
Most people will work with Debtors to clear arrears once they contact them as it is in both their interests to clear any balance owed. People who don't bother to contact the person who owes them money- I have little sympathy for.


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