# Credit union ringing guarantor



## tina4 (6 Jul 2011)

I have a large loan with the credit union. It was 50,000 but its now down to 22.
I was paying 1000 a month but we had money problems so it was reduced to 645. 
Now while we were having difficulty they werent getting proper monthly payments so im in arrears of 4500.
I am paying 600 a month every month.
I asked if they would consolidate 3 other loans and it would take pressure off us and we would have been paying them 1500 a month.
But they refused and know are ringing my guarantor. Tell her shes going to have to help us clear these arreres, and threatening her with court and stuff. 
We are realy having difficulty paying the 600 so have no chance of paying the arrers. Nowere will consolidate loans for us. so we are stuck.
Any advice.


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## Crugers (7 Jul 2011)

tina4 said:


> I asked if they would consolidate 3 other loans and it would take pressure off us and we would have been paying them 1500 a month.
> But they refused and know are ringing my guarantor.


 
It appears that your loan has already been rescheduled. Recent changes to Section 35 of the CU Act mean that the CU are restricted from granting more credit to members with rescheduled loans. That would explain why the CU can't "consolidate 3 other loans".
When the CU asked for a guarantor for your loan it was because they felt there was a possibility that you might default i.e. go into arrears. That scenario appears to have come to pass, so they have now contacted the guarantor.

I can only suggest that you to go to MABS for help.


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## tina4 (7 Jul 2011)

Thanks for the reply.


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## MANTO (7 Jul 2011)

Hi Tina4,

Technically they could consolidate your loans without rescheduling. Once the consolidation is within the current term of the loan or less. Rescheduling only comes into effect if the term of the loan is increased.

I would make a proposal to the CU stating you are paying:

x amount to the CU per month
x amount to the Institution 1 per month
x amount to the Institution 2 per month
x amount to the Institution 3 per month

Ask:

What would the repayments be over the same term if the loans were consolidated against your total repayments above per month?

Depending on what you owe though the repayments may not be realistic.


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## tina4 (7 Jul 2011)

Hi thanks for the reply. I have done all that i even appealed their decision on not consolidating. I explaned that it would make finacial sense for them and us but they refused. So as it stands they are looking for guarantor to pay the 45 euro and some of arrears. We have tried our bank to consolidate. 
I have just rang the pheonix thats like mabs but dont have the waiting list to see a consultant. The last thing we need is to start defaulting on any of the loans and we are just about managing by juggling everything.


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## Complainer (7 Jul 2011)

tina4 said:


> I have just rang the pheonix thats like mabs but dont have the waiting list to see a consultant.


Private debt management agencies are not 'like MABS'. They are commercial bodies, who will be taking a payment or commission somewhere along the line. They might add value to your situation, or they might end up costing you more than you save. Tread carefully.


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## tina4 (7 Jul 2011)

The Phoenix project is a non profit organisation, i heard them on the radio a few wks ago. Theres a post below about them. As far as i know they are a free agency. I hope they are im traveling down to portarlington to meet with them.


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## Complainer (7 Jul 2011)

If you Google for Phoenix Debt Management, it puts up an ad for these guys http://www.debtsireland.com/. If they are paying for Google ads, it is a fair bet that they are a commercial body. The absence of any contact details other than email on the website is a warning bell, and the absence of a street address is possibly illegal.


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## Crugers (7 Jul 2011)

MANTO said:


> ...Technically they could consolidate your loans without rescheduling. Once the consolidation is within the current term of the loan or less. Rescheduling only comes into effect if the term of the loan is increased....


 
But it appears from the OP that the original loan has already been rescheduled and is in arrears...



tina4 said:


> ...I was paying 1000 a month but we had money problems so it was reduced to 645.
> Now while we were having difficulty they werent getting proper monthly payments so im in arrears of 4500.


 
If Tina4 did sign off on a new credit agreement when the repayment changed from 1000pm to 645pm (i.e. rescheduled) then the CU would now be restricted from granting an increase in credit (i.e. consolidation).


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## truthseeker (8 Jul 2011)

Complainer said:


> If you Google for Phoenix Debt Management, it puts up an ad for these guys http://www.debtsireland.com/. If they are paying for Google ads, it is a fair bet that they are a commercial body. The absence of any contact details other than email on the website is a warning bell, and the absence of a street address is possibly illegal.


 

I think the OP is referring to [broken link removed] people - seems to be a legit registered charity.


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## Complainer (8 Jul 2011)

truthseeker said:


> I think the OP is referring to [broken link removed] people - seems to be a legit registered charity.


You're probably right. They do look to be a lot more respectable than that other crowd. OP should make sure that they are competent as well - not just well intentioned.

I wonder if the other crowd have bought Google Adwords on 'Phoenix' to try to redirect potential users of the Phoenix service?


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## tina4 (20 Jul 2011)

thanks for all the replys. Found the guy at [broken link removed]  exellent defo knows his stuff. Well worth a 4 hour round trip. Came away with an action plan and alot less stressed. They seem to be exactly like mabs but just dont have the long waiting list.


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