# Credit Union - Refuse to reduce loan repayment



## sally365 (20 Aug 2013)

Hi,

My mother pays back €140 a week on her loan, her loan stands around 6k and she has savings of about 1.2k.

She requested to only pay back €100 a week, and they threw loads of paper work at her.

She goes into the credit union weekly and pays back her €100, but shes getting charged interest because shes not paying the full €140

Why are they making it so difficult for her? she's never missed a repayment in her life.

Do you have any advice? Do these forms need to be filled in? - A huge list of her expenses in her personal life...seems OTT as €140 is a lot! and why not let her reduce her repayments, arn't longer loans more beneficial for the credit union?

They told her she couldn't offset her savings as it was ''security'', but can she?


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## Brendan Burgess (20 Aug 2013)

Read the Key Post

How to set your Credit Union shares against your loan 




> She goes into the bank and pays back her €100, but theres now interest been added to her account.


I don't understand your point. The CUs charge interest on the outstanding balance? Your mother has not been charged something extra for requesting a rescheduling. 

A lot of the forms are determined by their regulator, the Central Bank. 

But, at the end of the day, the Credit Union is run by and for its members. Go to the AGM and kick up hell if you feel you are being mistreated.

Brendan


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## sally365 (20 Aug 2013)

Hi Breadan I was reading that 'How to set your Credit Union shares against your loan ' seems very confusing and complex..eep thanks tho


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## RichInSpirit (21 Aug 2013)

There will be more interest to be paid in the long run but no penalty interest. 
Without restructuring there may also be arrears showing up on her account but arrears are not really a real figure. Arrears may build up over the life of the loan but when she finally clears the loan, the arrears will just disappear. 
I'd just keeping paying the €100 and not worry about anything.


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## Jim2007 (21 Aug 2013)

sally365 said:


> Do you have any advice? Do these forms need to be filled in? - A huge list of her expenses in her personal life...seems OTT as €140 is a lot! and why not let her reduce her repayments, arn't longer loans more beneficial for the credit union?



At the end of the day if she wants to be considered for a change in the loan agreement, she is going to have to do like everyone else, follow the procedure and show justification for seeking the change.

The other thing to keep in mind is that a CU is supposed to act in the best interests on all it's members and by extending this loan it will mean that other member may not be able to get a loan or have their payments reduced as result - so it is important that there is a transparent procedure in place that is fair for all.


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## unsub (21 Aug 2013)

If somebody owed you money and requested to reduce the repayment,you would want to know if the request is justified. Hence the request for the completion of the Income and Expenditure form. 
If your mother went to MABS she would have to do the same thing for them to negotiate on her behalf.
Most people have recent electricity/fuel/phone/refuse/TV/mortgage or rent bills sitting in the kitchen drawer or on a bank statement, so it is not too hard to gather up.
Even the people in the CU have household/food/medical bills so if the figures your mother inputs are reasonable they will be accepted.
Work with the CU on this, they might grumble and moan about it, but presented properly they will accept your mother's offer of €100 p.w.  It will stop unnecessary CU correspondence to your mother


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