# Credit Union has sent my debt to a debt collection agency



## Newman

Need some urgent  advice on the following issue. I have been faithfully paying off a CU debt by means of a monthly direct debit as verbally agreed with the management. This arrangement has been operating now for a number of years with  consistent unbroken payments. However this morning I received in the post a letter from a Debt Collection Agency who are now apparently handling my file asking me to contact them regarding same.
What I am paying is the maximum I can afford and we are living on social welfare payments my husband is an OAP 76yrs old...while I an 60 years of age. There is no possible way I can increase the monthly payments being made  and these people are expecting me to contact them in the morning. Can anyone offer any advice as to how I should approach this when I do make contact and what power  do these organisations have to enforce another situation, thank you,


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## joeysully

If you already have an agreement with the CU and are still making the agreed payments then I would be contacting the CU asking why they are selling off your dept. 
If you do start communicating with the Debt collector I would only contact them via post and don't give them your phone number. 

How much is the loan for?


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## Newman

19,153.10  I tried contacting CU yesterday, left a voicemail ,still waiting  for them to make contact. Should I wait to speak with CU  before contacting Debt collector?  & am I within my rights to ask CU for all payment documentation made by me?


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## Slim

I believe that your CU would only send the loan for collection if they felt you were not living up to an agreement or that you had potential to repay more. One problem is that your agreements are verbal. You need to re-engage with the CU to try and get a written agreement on your loan repayments.


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## RichInSpirit

Had 3 or 4 debt collectors after me at different times. They're normally easier to deal with than the original creditor, in my opinion.
Offer them less money per week or month than you are currently paying.


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## trasneoir

Newman said:


> am I within my rights to ask CU for all payment documentation made by me?


Yes


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## Newman

I've already stated that I am & have been living up to  my agreement without a single unbroken payment. They have already taken the payment for this month (March)


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## trasneoir

Newman said:


> I have been faithfully paying off a CU debt by means of a monthly direct debit as verbally agreed with the management. This arrangement has been operating now for a number of years with consistent unbroken payments. However this morning *I received in the post a letter from a Debt Collection Agency* who are now apparently handling my file asking me to contact them regarding same.


Just re-read this bit - I smell a rat. Unless you hear otherwise from your credit union, I'd *assume it's a scam*, and do not correspond with them in any way.

Until all this is sorted, *the only communication you trust is when you call the credit* *union *on their official phone number (check their website, don't trust the phone number printed on a letter). Better again, make an appointment and turn up in person if possible. If they call you, take the caller's name and politely tell them that you'll call back on the official phone number.


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## Newman

trasneoir said:


> Just re-read this bit - I smell a rat. Unless you hear otherwise from your credit union, I'd *assume it's a scam*, and do not correspond with them in any way.
> 
> Until all this is sorted, *the only communication you trust is when you call the credit* *union *on their official phone number (check their website, don't trust the phone number printed on a letter). Better again, make an appointment and turn up in person if possible. If they call you, take the caller's name and politely tell them that you'll call back on the official phone number.



Trasneoir  I am going to contact CU again this morning ,however I just received a phone call on my mobile (went to voicemail) which leads me to believe they got my no from the CU.I'm really at a loss as to why they didn't even inform me that they were passing on the Debt. I know I am only paying a small amount but it is all I  can afford. I'm losing sleep over this


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## Newman

I have just spoken to a member of CU. She has informed me that they have transferred all debt to this Dept collection agency for the moment? When I asked why my Debt was transferred when I have kept  to my agreement ,all she would say is I need to ring the number on the letter & speak to them. I said no disrespect intended here but I would like to speak to  credit  control or make an appointment,& was informed the CC was out sick & they didn't know when  she would be back........I informend her that the credit union still took my payment for March & who exactly am I paying? She said ring the number on the letter you received.....What do I do Now


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## dereko1969

Call in and demand to speak to the CU Manager. Does the CU have a website, is there any reference on it to Debts being passed to DCA on there?
It's certainly raising alarm bells that all debts have been passed to the DCA, maybe ring the Irish League of Credit Unions and see what the policy on this is?


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## Jellybean

Newman said:


> Need some urgent  advice on the following issue. I have been faithfully paying off a CU debt by means of a monthly direct debit as verbally agreed with the management. This arrangement has been operating now for a number of years with  consistent unbroken payments. However this morning I received in the post a letter from a Debt Collection Agency who are now apparently handling my file asking me to contact them regarding same.
> What I am paying is the maximum I can afford and we are living on social welfare payments my husband is an OAP 76yrs old...while I an 60 years of age. There is no possible way I can increase the monthly payments being made  and these people are expecting me to contact them in the morning. Can anyone offer any advice as to how I should approach this when I do make contact and what power  do these organisations have to enforce another situation, thank you,


I know lots of people who got these letters from the same credit union,St.michaels in blackrock.When the cu was contacted the credit controllers were 'out sick'.I think they're screening calls.Im in the same situation,I have a verbal agreement to pay so much a month and I have not missed a single payment in more than 6 years.I am going to complain to the financial ombudsman,I didn't receive one call or letter in the last 6 years from the cu.I wouldn't deal with that company,keep paying the cu.


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## RichInSpirit

It sounds like that credit union is in financial difficulties.


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## Newman

I made contact again with CU this morning & told them I will not engage with the Debt collection agency until I speak with the Credit controller  in credit union. I made reference to the fact that the Debt Collection states that I owe 19,153.10 which was stated in their letter to me. However I have a statement from credit union going back to Aug 2013 stating my balance is 10,500 (give or take a few pence) The payments have been maintained since this period.  How could it jump so much in 18 months??? I'm totally perplexed by this. When my verbal arrangement was made I asked if the interest could be suspended to give me a chance to clear the loan & that was agreed. I asked to make an appointment to discuss what's going on as I have been with this same CU over 25 yrs,& felt the very least they could have done was write & inform me that they were going to transfer  my debt. But they keep referring me back to the DC agency?I forgot to add that I have received several phone calls from DCA to contact them urgently.Can they just issue a court order if I dont engage with them?


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## moneybox

RichInSpirit said:


> It sounds like that credit union is in financial difficulties.




Really dreadful customer service considering OP is with them over 25 years. OP don't give your tel number to this debt collection agency or they will hound you.   Is there anyone you can contact about this carry on within the credit union? I would be threatening to ho public if they don't arrange to a meeting with you. That's probable the last thing they would want.  Any sniff of financial trouble and they maybe a run on its doors.  You really are being treated very badly.


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## Newman

CU already gave them my number... The calls have started since Wed . I am letting them go to voice mail. They have sent a text in Capitals asking that I contact them urgently


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## Sweetsmile65

I also received one of these letters and a text from Cabot Financial, in relation to my loan from Blackrock Credit union, which I'm paying back by standing order. The thing that annoys me is, why didn't they contact me if they were not happy with the repayments, absolutely appalled at their behavior. I will seeking further advice on this one, as far as I know debt collectors have no authority, they rely on scare tactics to get the money. Keep paying the credit union as that is who your debt is with.


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## RichInSpirit

It really sounds like the credit union is in trouble and has taken action based on pressure from the financial regulator or whoever governs the credit unions.
I don't know if ordinary members can call for an EGM (Emergency General Meeting) but it should be possible.


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## RichInSpirit

Their official website looks to be www.blackrockcu.ie but it looks very antiquated being a one page website from 2006 and has a mistake in the phone number on the very top.


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## moneybox

Newman said:


> 19,153.10  I tried contacting CU yesterday, left a voicemail ,still waiting  for them to make contact. Should I wait to speak with CU  before contacting Debt collector?  & am I within my rights to ask CU for all payment documentation made by me?



Change your number, take out the old sim card, it will go dead if anyone tries to ring it.  A nuisance yes. but what is the alternative? these people harassing  you at all hours of the day and night. You are entitled under the FOI to request all info they hold on you. You should definitely try and speak to someone in the credit union and if you have to make contact with the debt collector, insist they do it by mail, that way you have a record of all communication.


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## trasneoir

moneybox said:


> Change your number, take out the old sim card, it will go dead if anyone tries to ring it.


Don't do this IMO. Those phone calls can be ammunition in your belt.

Write the agency - you will make contact again once your situation with the has been clarified with the CU. Until then, you will be honoring your agreement with the CU. You also insist that all correspondence be in writing ONLY (keep a dated copy of the letter). If you like, this can be your first opportunity to play the age card ("My memory isn't what it used to be") but it isn't necessary by any means.

Log all calls - the log will be part of your complaint to the ombudsman if they continue to harass you.


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## RichInSpirit

http://www.cabotfinancial.ie/services/credit-union-services

[broken link removed]

Cabot advertise as debt collectors for credit unions on their website. I don't think Blackrock made the wisest decision to pass the debts to Cabot. There's loss of goodwill and all sorts of issues involved. Data protection being another issue.


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## Newman

I rang CU again this morning ..they are flately refusing to take calls on this matter...or even to see me. I informed them that I refuse to engage with the Debt collection  agency until such time someone can explain to me why my debt has gone from 10 grand up to nearly 20 grand in 18 months. I am sounding  very confident on the phone to them, but the fact is I'm kinda scared


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## unsub

1. You should request *in writing* an up to date statement from your credit Union plus a copy of the loan history which shows their annotated record of the conversations and activities regarding your loan. Send this request to the CU Manager and Board Chairman.
2. In the letter, also request a meeting with these two people and in the interim,  that they instruct the debt collection people to refrain from contacting you in any way.
3.  Print off the Standard Financial Statement form from the *MABS.ie *and complete it to the best of your ability. In doing this, you will be able to show if your arrangement with the CU is fair and reasonable. Bring it and supporting documentation (Bank statements, receipts, invoices etc) to the meeting with you. If you feel that you need  the help of MABS, you have done the homework.
4. Should the CU fail to meet with you or engage with you in a meaningful manner, there is always the *power of Joe, *as all financial entities dislike unfavourable publicity. You can contact the Irish League of Credit Unions with your complaint.
5. Keep all communication in writing and keep copies. If it can't be put in writing, it might not be legal.
6. if anybody from the debt collectors phone you make sure you get full names and record the time of the call and repeat that you will only communicate with them in writing. Best of luck!


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## Newman

G'Evening  all, thanks so much for all your advice & posts. the latest update is after more phone calls to the CU. the manager finally returned my call. She assured me there was nothing to worry about as the CU had just outsourced some debts to the Debt collection agency because there was no longer a 'Credit Control' officer in charge. The situation hadn't changed for me & I should continue to make my repayments as normal.

However I received a call from the debt collection agency to inform me they were responding to the email I had sent them requesting time to sort out some issues with CU. He was very nice & cordial & informed me that my debt had been Written Off by CU but that I should continue making the payments . I asked if he would put that in an email to me &  he said he wouldn't be allowed to do that. Any correspondence in the future should be addressed to them.


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## Grizzly

Newman said:


> He was very nice & cordial & informed me that my debt had been Written Off by CU but that I should continue making the payments


Your debt hasn't been written off by the CU. You stated earlier that you have been making regular repayments for a number of years and the CU has been accepting these for a number of years. So your debt is very much active.
The CU manager is fobbing you off. There is now a Debt Collection Agency dealing with your case. When these people get their teeth in to you they won't let go. My advice is to 100% ignore them and stick with your credit union and don't let them fob you off.
Regarding the two posts about the Blackrock Credit Union. I am a member here. The staff, bar one individual, are really nice and pleasant people. I would suggest however that none of them would be much use in the collection of bad debts, because they are so pleasant. Outsourcing to a Debt Collection Agency is their way of not having to deal with the unpleasant side of their business.


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## Slim

+1 to what Grizzly wrote. Writing off your debt is only an accounting exercise. You still owe and will be pursued for the balance. As you have been advised that your arrangement is fine, I am concerned that the credit control function has been outsourced. To me, that raises Data Protection concerns, not to mention good/bad faith in its dealings with you. I would suggest that you write to CU, outline what has transpired and tell them you wish to deal only with staff of your credit union as your repayment arrangement is up to date and considered acceptable to the CU and that you will not be corresponding with the debt collection agency. Furthermore, ask for acknowledgement and confirmation in writing.

Did you find out how your debt had grown fro €10k to €19k? As it is 'written off' interest stops accruing.


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## Newman

Grizzly & Slim  The first question I asked the CU manager was how the debt I owed had jumped from 10 to 20 grand & she told me it was interest, I informed her I had a verbal agreement with the credit controller that the interest would be stopped to  give me a chance to pay off the loan. The manager informed me that the CC did not have the authority to do that, but that I wasn't to worry about it. I also stated in an earlier post that I was a member in the CU for 25 years..in fact its more like 35/38. The manager said they had be inundated with telephone calls  all week  because of the said letters.  I am aware I still owe the debt, they don't  have to pursue me as I'm willingly paying it & will continue to do so, even though I informed her I will be well dead & it still wont be paid off. To be honest I felt relieved after speaking to the manager & the guy from the DCA....But after reading your posts I'm not so sure  If I don't deal with the DCA,can they take legal action to enforce it ?


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## RichInSpirit

It seems like a blanket decision was made to outsource bad debt to the debt collectors. Probably because this credit union has a lot of bad debt. and they feel this is the best way to try and collect it and maybe they were pressurised into this by the financial regulator. 

My personal opinion would be to write to the credit union and offer only to repay the principal with all previous interest being written off and all future interest being frozen so that you will pay no more interest regardless of who you repay the money to or the time-frame it takes for you to repay it. I think they'll grudgingly agree to this.


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## Slim

Newman said:


> ....But after reading your posts I'm not so sure  If I don't deal with the DCA,can they take legal action to enforce it ?


I certainly did not intend to alarm you. As long as you are paying what was agreed, your arrangement will be respected. The CC probably did not follow through with freezing the interest. It willhave stopped when the loan was written off. I also think you should write to the Board outlining the verbal agreement you had with the CC and ask them to honour it. Do not be intimidated. You are paying and they will be glad of that.


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## vandriver

You need to get clarity on the amount owed.It is not possible for a CU debt to climb from 10k to 19k in 18 months while you have been paying something off.Credit Unions charge a Max of 1% a month so even with nothing paid for 18 months,your debt should be around 12k.Only the credit union can provide clarity on this,so go in and see them.


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## Newman

The CU & the debt collection agency both agree I now owe 10k.The guy from DCA informed me yesterday my payment would be coming off that....so why did they quote 19k in the letter? I am worried that if I don't engage with them   they will take me to court...because that would tip me over the edge.We are struggling at the moment paying mortgage & we have other debts which I am also paying off,it's only small amounts but I am still trying to clear  what we owe. There are weeks I want to grab my OH & say 'sod this lets go out to dinner/drink/anything'  but after that rush of blood to the head, I pay my debts.  
 I fully intend to take the advice given here & put it all in writing to CU.I did email them when I got the letter from DCA but seems that was ignored. One more question please....Is emailing them the same as writing a letter & posting it? forgive my Blondness!


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## RichInSpirit

Try and work out an amount that you are comfortable repaying per month or per week. Preferably less than you are currently paying to the credit union. Assuming there is no further interest being added the longer you take to pay it back leaves you with more disposable money in the here and now to live and pay more important bills such as your mortgage. 
A meeting with MABS Money Advice and Budgeting Service might be beneficial but don't feel pressurised to repay more than you feel comfortable with.


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## Slim

Newman said:


> ...One more question please....Is emailing them the same as writing a letter & posting it? forgive my Blondness!


 
Actually, a good question. It would be the same if it went to court or you needed to provide evidence to the Board of the CU, so email away. They may not pick up emails as quickly as they would a letter though. Glad the amount has been sorted out.


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## birain

I've already stated that I am & have been living up to my agreement without a single unbroken payment. They have already taken the payment for this month (March)


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## Slim

birain said:


> I've already stated that I am & have been living up to my agreement without a single unbroken payment. They have already taken the payment for this month (March)


Welcome birain. Would you care to provide some more information on your situation?


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## CUJimmy

I have come to this post a little late so forgive me if I do repeat some of what went before. Having a credit union background the following would be my observations
1. Your account in the credit union would appear to be written off, so in affect the payments you are making are going off the principal amount and no interest is being charged.
2. The credit union have outsourced their credit control to an outside agency. The €19k balance quoted probably includes the principal sum plus the outstanding interest. Most credit unions are happy just to recover the principal once the loan is written off and you should clarify that this is the case with your credit union. 
3. Emailing your credit union should in my view be sufficient and they should reply. Obviously keep all mails, a tip however might be to address the mail to the secretary or to the board of directors.


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