# Credit Union Problem



## sweetpenny (21 Sep 2006)

I took out a loan 2 years ago for 3,000euros. I used to drop into to office and pay monthly. I then decided to set up a direct debit, filled out the form and posted to my bank. 3 months later I received a solicitor demanding full payment of the loan.

The bank never got the DD mandate!

I pay approximately twice my required monthly payments. My account is up to date.

The solicitors now send a letter every couple of months demanding settlement, the legal costs of these letters are taken out of my shares with the CU. The CU told me this would continue and there was nothing they could do about it.

I can clear the debt tommorow and close my account, should I do this.

I was under the understanding that the Credit Unions were a friendly organisation and would not resort to this extortion.

Thank you in advance.


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## Brendan Burgess (21 Sep 2006)

It seems strange that you got a solicitor's letter after three months without getting an ordinary letter or phone call from the credit union. I would expect that any lender would accept that a genuine mistake was made. 

Are you speaking to the manager of the credit union? Don't accept an answer from the person in the office. Ask for a meeting with the manager and explain your position. If you don't get a satisfactory answer, write to the Chair of the Credit Union. 

If you are not happy with this, you can make a complaint to the Ombudsman for Financial Institutions. Most credit unions are very customer friendly. But every credit union is independent and this one may have lost the run of itself.

Brendan


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## sweetpenny (21 Sep 2006)

I never received a letter from the credit union nor a phone call. It is unbelievable that they will allow a Solicitor to continually send me letters and charge me for this in the full knowledge that I am more than up to date with my account.

The girl behind the counter told me that the solicitors get a commission on the outstanding balance. I will take it up with the manager tommorow. 

At this stage I think I will clear the loan and withdraw my savings.


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## bond-007 (21 Sep 2006)

So you are up to date now and have no arrears? If so what they are doing is harrassment. Maybe go to the Gardai and make a complaint.

Have the CU sold the debt to a third party? 

Either way clear the loan and withdraw your savings. I would demand a refund of the fees for the solicitors letters. They have no right to charge you for these as your account is in order.


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## liteweight (22 Sep 2006)

sweetpenny said:


> The solicitors now send a letter every couple of months demanding settlement, the legal costs of these letters are taken out of my shares with the CU. The CU told me this would continue and there was nothing they could do about it.



Why can't they do anything about it? Surely they instructed the solicitor in the first place. I also don't see how they can take the cost of these from your credit union shares without your permission. It does sound like they have passed on your debt, but I wouldn't have thought that they'd normally do this after such a short space of time, particularly as they made no effort to contact you.

I would definitely contact the Ombudsman on this issue. If you pay off the loan and withdraw your savings, you may be left with the solicitor to deal with. I'd keep the credit union in the equation until I got some advice from the Ombudsman's office.


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## Thrifty (22 Sep 2006)

Have you spoken to the manager of the Credit Union? I would certainly try approaching them again and prepare a letter setting out the situation and your efforts to resolve it so there can be no 'you didn't tell us that' later. I would be inclined to state also (if you are being fogged off) that unless your complaint is looked into properly you will have no option but as a member to raise it at the next AGM.


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## Snork Maiden (23 Sep 2006)

If its not resolved satisfactorily clear your loan and withdraw your shares leaving all but €5.00 in your account so that you are effectively still a member and entitled to attend the AGM to highlight your issue.


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## dereko1969 (26 Sep 2006)

with regard to the OP you definitely need to go into the CU and talk to the manager. I'm confused as to how you are up to date with your payments if the DD has never been activated. with regard to the last poster how do you know the 'scumbag' owes this money? did you open a private letter addressed to her? how do you know she's a 'scumbag'? think someone opening someone else's private mail could be accused of the very same thing.


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## JulyBaby (26 Sep 2006)

When you get this sorted out make sure you don't end up with a bad rating. All the financial institutions usually are linked to credit rating databases so if the credit union gave you a bad rating this may affect your ability to get loans elsewhere in future. Get the manager to state in writing that your rating is OK.


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## bond-007 (26 Sep 2006)

The vast majority of Credit Unions are not on the ICB so that won't be a big issue.


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## triplex (26 Sep 2006)

Each Credit Union has a committee which meets every week - usually at night. As a member, you are entitled to go before this committee in person and query directly with them what has happened. 

do this first. Have your own story in writing, and bring copies of solicitors letters. 


never heard of such rubbish from a CU before!

good luck!


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## Megan (27 Sep 2006)

Did you not notice that the DD wasnt coming out of your account and didnt do anything about it.
Did you have a history of not paying on previous loans you might have had with the Credit Union. I know from experience that if you were in trouble paying back loans they would keep a closer eye on your present loan then someone who would allways pay back monthly.


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