# Credit Union - reduced payments ICB report



## hobbs123 (27 Feb 2017)

A couple of months after taking a CU load (about 6k) in 2014 I had a 9 month period of unemployment. I was able to keep the full payments going for a period but when it was becoming unsustainable I made contact with them looking explaining the situation and they suggested a period of reduced payments which I happily agreed to. After about 6 months of making that agreed reduced payment I picked up new work and had the arrears paid off with a month or two and killed off the rest of the load early.Last week with a view to looking for a mortgage I applied for the ICB report and was quite shocked to see that period of 6 months show up as being in arrears. This was never mentioned by the CU at the time as a consequence and I, maybe mistakenly, thought that once a proactive engagement was made before there was ever trouble with a repayment and the new agreement was fully fulfilled it would not have impacted my credit history. Upon contacting them now, while they acknowledge not mentioning the impact on the ICB history at the time (have emails in correspondence), their line is a 'scan' of the accounts is automatically sent to the ICB irrespective of the 'reduced payment' agreements.  Had I known this would have been the impact of the reduced payments I could have and possibly would have been able to source help from family and friends.
The ICB website does say where errors with the lender are concerned:
"your lender might have agreed to let you postpone payments for a period, but forgot to change the report it sends to ICB."
My question is are this CU correct in its interpretation of the agreed reduced payments still amounting to the account being in arrears - from my conversation with the CU and what I can pick up on the net its not 100% clear to me what the golden rule here is.


----------



## hobbs123 (6 Mar 2017)

Update on the above:
MABS and a mortgage lender have both come back with pretty much the same information. That as I had :

Proactively engaged with the CU before I knew I would get into difficulty (thereby did not miss a payment)
Met ALL agreed payments (full payments before the period of unemployment and the agreed reduced payments during that period)
Paid the balance of the reduced payments built up during the reduced payment period within a month or so of regaining employment 
Completed the full loan repayments thereafter 

that technically the ICB report stating this was a period of 'arrears' was not correct - there was an agreed reduced payment occurring during that 6 months.  MABS are saying to fight this, which I intend to do - that the CU can change the ICB report to
 a) can and should remove the arrears or 
b) (need further clarification) have the code updated to more accurately reflect the reduced payments and a note added to explain

Anyone any similar experience to this?


----------



## Sir Iowealot (7 Mar 2017)

It appears that the period of reduced payment was only a temporary agreement and your loan was not rescheduled which is common for all CU's as they need to ascertain can the member stick to the payments before a restructure can even be considered. As there was no restructure, the credit union continued to report the original loan repayment amount as being due to ICB each month which resulted in the arrears showing up in your report. If as you say you have proof that the credit union failed to notify you of the effect reduced payments would have on your ICB you should follow the complaints procedure of the credit union and demand that they have your credit history amended. 

I should also make the point that if you had rescheduled the loan to a lower payment this would also have shown up on your ICB as a restructure and would still be effecting your mortgage application.


----------



## Gerry Canning (7 Mar 2017)

Present your case to CU.
I think at least ensure you get Cu to acknowledge your bona  fides in writing , to have on file should you need future credit.
You can then show your factual creditworthiness , as distinct from a system generated ICB.
I would think if you put nuff pressure on CU , they may amend.
Fully explain case on any mortgage application..


----------



## star32 (2 Apr 2017)

The credit unions do have a facility within their IT system that when a member enters into an agreement such as your own then M for moratorium will show up in ICB for the months your agreement in place. I would contact you credit union and challenge them because technically they should have put this in place.


----------



## hobbs123 (2 Apr 2017)

Thank you very much for this info star. While it was made clear to me via consumerhelp (CCPC) that the ICB report was not 'factually correct' I was unclear as to what / how the CU could / would update it. Your info there fills in the gap.Last I heard the CU are trying to get in touch with the Data Protection Department in the ICB in response to my relaying that CCPC/MABS info in the last correspondence I had with them. Will see how it unfolds. Much appreciated again - good to know for when they get back to me.


----------



## newtothis (15 May 2017)

hobbs123 said:


> Last I heard the CU are trying to get in touch with the Data Protection Department in the ICB in response to my relaying that CCPC/MABS info in the last correspondence I had with them. Will see how it unfolds.



Is there any update on this?


----------



## hobbs123 (15 May 2017)

After a few follow-ups they acknowledged that it was incorrect. Waited for a month to pass for update to take effect and received cleaned ICB report just last week. Thanks for help and support here.


----------

