# Credit union says an old loan was not repaid



## samsung09 (21 Oct 2016)

I took out a loan of a few thousand about 10 years ago, but the credit union would only give it if the money came out of my parents bank account. I paid my parents for 2 years then i gave them a lump sum because i came into a small bit of money and went off travelling for 2 years. Upon my return my parents decided to move abroad in retirement.

I am after getting letters lately from credit union saying that there is still a debt of a few grand on the loan and i am to repay it. I have ignored them but now i am getting rather annoyed about it all. It says the loan has not being repaid in over 7 years. I have never spoken with them or got back to them. I do not want to bother my parents as they have giving me enough and my fathers health has not being good past few years.

Is it my fault that the money did not come from there accounts? am i fully responsible here? Any advice on what i should do?


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## Monbretia (21 Oct 2016)

Well if the loan was in your name then yes it was up to you to ensure it was being paid.  Maybe your parents never paid off the lump off it for whatever reason or it wasn't enough to clear it and just let the payments continue but then if they have moved abroad maybe that account was closed and the payments stopped.

Either way, if it's in your name then buck stops with you, odd though that you didn't hear anything for 7 years!


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## samsung09 (21 Oct 2016)

Monbretia said:


> Well if the loan was in your name then yes it was up to you to ensure it was being paid.  Maybe your parents never paid off the lump off it for whatever reason or it wasn't enough to clear it and just let the payments continue but then if they have moved abroad maybe that account was closed and the payments stopped.
> 
> Either way, if it's in your name then buck stops with you, odd though that you didn't hear anything for 7 years!



My work had me on the move frequently around country and abroad . Only moved home in last while and have got this from them


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## Bronte (21 Oct 2016)

samsung09 said:


> I took out a loan of a few thousand about 10 years ago, but the credit union would only give it if the money came out of my parents bank account. I paid my parents for 2 years then i gave them a lump some because i came into a small bit of money and went off travelling for 2 years. Upon my return my parents decided to move abroad in retirement.
> 
> I am after getting letters lately from credit union saying that there is still a debt of a few grand on the loan and i am to repay it. I have ignored them but now i am getting rather annoyed about it all. It says the loan has not being repaid in over 7 years. I have never spoken with them or got back to them. I do not want to bother my parents as they have giving me enough and my fathers health has not being good past few years.
> 
> Is it my fault that the money did not come from there accounts? am i fully responsible here? Any advice on what i should do?



Well if you do not want to bother your parents you should repay your loan.  

When you paid your parents the lump sum before you went travelling was it clear this money was to be used to pay off your credit union loan?

Was it your parents address you used at that time?  Is that where they are sending the reminders now?

What do you mean the money had to come from your parents accounts, do you mean the repayments.


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## Bronte (21 Oct 2016)

samsung09 said:


> My work had me on the move frequently around country and abroad . Only moved home in last while and have got this from them



It might be statute barred.


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## samsung09 (21 Oct 2016)

Bronte said:


> Well if you do not want to bother your parents you should repay your loan.
> 
> When you paid your parents the lump sum before you went travelling was it clear this money was to be used to pay off your credit union loan?
> 
> ...



Ya repayments from there Bank account. Letters to the home place only in last while.


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## Bronte (21 Oct 2016)

samsung09 said:


> Ya repayments from there Bank account. Letters to the home place only in last while.



Are you back in the family home?

you want help, be more forthcoming!

Timelines please. At the very least. Are you statute barred for example, I guess not, was your expectation the lump sum equal led the credit union loan to be repaid not understood this way by your parents. For example.


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## samsung09 (21 Oct 2016)

Bronte said:


> Are you back in the family home?
> 
> you want help, be more forthcoming!
> 
> Timelines please. At the very least. Are you statute barred for example, I guess not, was your expectation the lump sum equal led the credit union loan to be repaid not understood this way by your parents. For example.



No I'm not back in family home. I'm back in area so they must of got my new address. I have received post from them in past 2 months. Sorry I'm not fully up to speed on statute barred? It says on letters that loan repayments have not being made since 2008 and they are demanding the remaining be paid.

I think my parents took the money and thought they would just leave the weekly installments continue. But upon departing did nothing about it.


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## dub_nerd (21 Oct 2016)

samsung09 said:


> I think my parents took the money and thought they would just leave the weekly installments continue. But upon departing did nothing about it.


Sounds like you know the answer, then. The CU won't know anything about a lump sum you gave your parents and you are the borrower so you are responsible for the loan. You need to ask your parents.


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## Bronte (22 Oct 2016)

So when you say letters to the home place, you just mean your new residence in the area you used to live in.

What happened the instalments ?

When did your parents move abroad?

Are you back for good?

Have you responded to the letters in any way?

Eight years.  Any poster know the statute limits on debt as I can't remember.

Did your parents guarantee the loan? Do they have assets in Ireland? Their home in the area for example.

How much is a few grand? 20k? 5 k?


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## samsung09 (22 Oct 2016)

Bronte said:


> So when you say letters to the home place, you just mean your new residence in the area you used to live in.
> 
> What happened the instalments ?
> 
> ...



Parents moved in 2008.

Last installment was paid in 2008.

I'm back in area permanently for now.

I have not responded or spoken to Credit union since 2007.

Yes my parents guaranteed loan.

They sold the all there assets and have set up abroad. They have nothing left in Ireland.

5 grand is what's left


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## Bronte (22 Oct 2016)

Is there any reason not to pay the debt?

I have good news for you, IF you are sure there are six years clear with no contact between you and the credit union

http://www.askaboutmoney.com/threads/first-post-on-how-long-a-judgment-lasts-for.167175/

Are you broke? If you are go to Mabs for help. If you're not broke I suggest coming to an arrangement with the CU. Because they are a community based organisation unlike banks or credit card companies. But that is entirely up to you.


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## Jim2007 (22 Oct 2016)

Bronte said:


> I have good news for you, IF you are sure there are six years clear with no contact between you and the credit union.



Provided the CU can so show it made reasonable attempts to contact the borrower during the six year period it remains in play.  You can't hide from your creditors and then use the statue of limitations to avoid your debts.


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## samsung09 (15 Nov 2016)

I have received solicitor letters now looking for full repayment of 5000 or court action. I have responded and told them I can pay back a few hundred lumpsome and weekly installments and still being threatened with court action as they want the 5000 up front ? 

Is there any other way to resolve this? The courts will see I don't have the money to pay off in full if it goes that far


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## demoivre (15 Nov 2016)

Bronte said:


> Because they are a community based organisation



...who charge exorbitant rates when you consider the opportunity cost of tying  up savings as security for any loan drawn down. One of the worst places to go for a loan imo.


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