# CU want to see bank stmts etc?



## ellenb (6 Jun 2013)

Anyone know what position is here?
We have a loan with CU that we got into difficulty with over 3 yrs ago. For past 7 months we have not been able to pay anything. 
Last meeting was 6 weeks ago and manager met us and first sentence to us included personal insolvency and house repossession. 
He concluded we had no affordability and said he would be in touch. 
He knew also that we are in same boat with our mortgage.
We have met the mortgage company since who have agreed a payment break.
Got letter from CU looking for update, which is fair enough but also want us to bring evidence of income and expenditure incl all bills, mortgage statements and bank statements.
I feel very uncomfortable about that. We have nothing to hide but even the mortgage company did not request all of that. It makes me feel as if they think we are misleading them. 
Are they allowed to request this? Also what step will they take next? Circumstances unlikely to change in foreseeable future and hoping to sell up but in neg equity.


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## wbbs (6 Jun 2013)

Nothing unusual in the CU looking for statements, income, expenditure etc.  Surprised the mortgage company didn't want the same stuff.  Maybe your current account is with them so they already know.  Did you have to fill in a Standard Financial Statement?  

Yes they have the right to ask and of course you don't have to give it to them, however if you are  looking for leeway of some sort from them then you will have to play ball.


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## Palerider (6 Jun 2013)

How much is owed to the Credit Union and how much in arrears, I see 7 months but in money terms.?


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## Brendan Burgess (6 Jun 2013)

> It makes me feel as if they think we are misleading them.



Hi Ellen

The problem for the Credit Union is that many people are misleading them.  The CU is right to check the information given by a creditor who says that they can't pay. 

You should not take it personally.

Brendan


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## Bronte (6 Jun 2013)

If they're willing to help you then you should have nothing to hide?


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## ClaireM (6 Jun 2013)

The next step for the Credit Union may well be to get a judgement against you if you are unable to reach agreement on repayments. They may secure the judgement by way of judgement mortgage on your home or look for an installment order in court.


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## ellenb (6 Jun 2013)

In terms of others lying to CU saying they cant afford loan when it isnt the case, I get that but this is a local CU that we have been with for years as are all my family, relatives, friends. They know me well. I guess that is why I am finding showing them everything hard, as it meand they no longer trust me and prrhaps private info will be shared with neighbours/friends

The loan was originally 14K and shares of just over 1K. Then got top up of 15K so total was 28K paying 350 back a month. 
MABS said they couldn't believe how little in shares we had and I was unaware of the 25% rule. Has that always been the case? Think loan first taken out in 2007? Top up a year or two later I think.
We are unable to afford to pay anything as both unemployed now and house in NE. Any thoughts on what this might mean in terms of legal action?


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## Brendan Burgess (6 Jun 2013)

Hi ellen

It's not just the Credit Unions. But the Central Bank will probably check their files to make sure that they are behaving properly.

Credit Unions operate in the community. It is very unlikely that they would be discussing your financial affairs with anyone else.  

If they see your bank accounts and know that you are not hiding money , then it's unlikely that they will take action against you. If they think you might have the money, they will take action against you.


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## Bronte (7 Jun 2013)

ellenb said:


> I guess that is why I am finding showing them everything hard, as it meand they no longer trust me and perhaps private info will be shared with neighbours/friends
> 
> Any thoughts on what this might mean in terms of legal action?


 
It's got nothing to do with trust, many people are bad with their finances, they have procedures and need to find out if there is somewhere that money can be got from to repay the loan, it will help you when they have the statements as they will then see you have no money and then they will hopefully not waste the credit unions's money on going the legal route.

In relation to your private life and sharing, I'm sure they are asking the same statements from all the people you see in the credit union each time you visit. Many people in the credit union are in the same situation as yourself. In any case it's all confidential. What is it that is so awful about your circumstances that your neighbours don't already know or suspect.


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## emeralds (7 Jun 2013)

ellenb said:


> The loan was originally 14K and shares of just over 1K. Then got top up of 15K so total was 28K paying 350 back a month.
> MABS said they couldn't believe how little in shares we had and I was unaware of the 25% rule. Has that always been the case? Think loan first taken out in 2007? Top up a year or two later I think.
> We are unable to afford to pay anything as both unemployed now and house in NE. Any thoughts on what this might mean in terms of legal action?



Do you not know exactly when you took the loans out? It really sounds as if your CU may have made some poor lending decisions (along with many other CUs) and they are now trying to get a handle on their situation regarding possible bad debts...


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## Gerry Canning (7 Jun 2013)

ellenb said:


> In terms of others lying to CU saying they cant afford loan when it isnt the case, I get that but this is a local CU that we have been with for years as are all my family, relatives, friends. They know me well. I guess that is why I am finding showing them everything hard, as it meand they no longer trust me and prrhaps private info will be shared with neighbours/friends
> 
> The loan was originally 14K and shares of just over 1K. Then got top up of 15K so total was 28K paying 350 back a month.
> MABS said they couldn't believe how little in shares we had and I was unaware of the 25% rule. Has that always been the case? Think loan first taken out in 2007? Top up a year or two later I think.
> We are unable to afford to pay anything as both unemployed now and house in NE. Any thoughts on what this might mean in terms of legal action?


......................................................................................
Suggest put the Legal Fears to the back of your mind.
Lenders ALL want THEIR money back and a lot of people lie to them.
Gather up all your Financial Information , good and bad.

Do NOT be atall afraid to Present the Truth of your situation to any Lender.
In spite of some horror stories, most Lenders, once they realise the EXACT position from an HONEST customer will NOT go legal.

That said they may Huff and Puff a bit. 
When all is added up YOU CAN ONLY do what you can afford.


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## ellenb (8 Jun 2013)

Thanks for the replies. We will bring everything they have requested down to them to prove the financial statement only completed a few weeks ago.
What I guess has upset me is that I know the same CU has agreed to freezing interest on other members loans in difficulty but has refused outright for me. 
Anything I have paid in last few years hasn't even covered capital-simply interest. 
And I have not heard of anyone else that has said they have been asked to produce everything to them. Anyways, no point in getting upset anymore. Thanks for replies.


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## Slim (10 Jun 2013)

ellenb said:


> ...What I guess has upset me is that I know the same CU has agreed to freezing interest on other members loans in difficulty but has refused outright for me.
> Anything I have paid in last few years hasn't even covered capital-simply interest...


 
You can’t always be sure of what other people say! As you have not paid for 7 months, the credit union must be close to the point where they will have to write off your loan. The interest will then cease and any savings you have there will be set off against the loan. Depending on the amount of the remaining debt, the credit union will try to get some payment from you but if you can't pay, may eventually just leave the debt on the books or, if the amount is substantial, register a judgement. At all times, keep the credit union informed of your circumstances but do not enter arrangements to pay that you cannot afford. If you can't pay, you should not feel under too much pressure anymore to do so. Try not to get upset. It is a deeply personal and distressing experience for you but, for the CU, it is now, sadly, all in a day's work.


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## ellenb (15 Jun 2013)

Thanks Slim


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## ontour (15 Jun 2013)

The credit unions are founded on personal relationship, community and trust.  This is a huge strength in that most people deal with them honestly and make every possible effort to repay debts as they know it is the savings of the other people in the community.
Many of the problems in the financial services sector were caused by a lack of documentation and process in approving lending.  Credit unions are now under more pressure to have all of the documentation rather than depending on the relationship with the member.  The regulator is having far more interaction with the individual credit unions and expects consistent processes and documentation.

The regulator is trying to making sure that the credit unions do not stick their head in the sand with regards to the CU finances, risk etc.   The credit unions are now more inclined to expect this of their members.

Demonstrating that you are making your best efforts to manage your finances and communicating with the credit union allows them to take your name off the list of people they need to chase.

It is my understanding, although you should validate it, that if you make no payments for a year, the loan is 'written off' the active loan book and interest stops accruing.  The credit union continues to pursue the debt.  If your financial statement supports complete inability to pay the credit union, this may be a better course of action for your situation.


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