12% interest on Credit union

Well excuse me!!

If the credit unions are such blood sucking vampires as you have just made them out to be then why does anyone bother with them.

i was simply making the point that they are far more fair with the ordinary person than the bank.

i have never experienced any troubly with the credit union and obviously i wasn't suggesting that people should get top up after top up. You need to borrow wisely and as with any loan you need to have a good head on your shoulders.

i also think that people who have had a bad credit history and are now trying their best to get back on their feet deserve a chance.

i'd like to have alist of all of the banks that allow you to pay off a loan with no penalty please.
 
Margie said:
If the credit unions are such blood sucking vampires as you have just made them out to be then why does anyone bother with them.
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Nobody said anything of the sort. But they are far from the utopian solution to consumer savings/credit that many people like to believe usually having had it mindlessly inculcated in them for years by past generations that this is the case. It's one of those "well known facts" that is nothing of the sort that CU's are the cheapest/best lender for people. Why do people bother with them? Same reason some people take out mortgages/personal loans at higher rates than they could get elsewhere by shopping around etc. I suppose...
i was simply making the point that they are far more fair with the ordinary person than the bank.
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That is debateable especially given the issues that I raise above.
i also think that people who have had a bad credit history and are now trying their best to get back on their feet deserve a chance.
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More and more CUs are joining the ICB these days by the way.
i'd like to have alist of all of the banks that allow you to pay off a loan with no penalty please.
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Most variable rate secured and unsecured loans can be paid off without penalty.
 
ClubMan said:
Most variable rate secured and unsecured loans can be paid off without penalty.
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Where would you pay off a €25000 loan with no penalty?

I'm thinking you must work in a bank.

The fact remains that most people prefer the credit unions as do i.

i can't stand the banks.
 
"I can't stand the banks"
I think that is a slightly unfair remark. Admittidly the Banks have been involved in dubious practices in the past and have in some cases overcharged customers and assisted in tax evasion. In general these practices have now ceased and the financial sector in general has just about got its act together.
Credit Unions are not better than Banks nor are banks better than Credit Unions its effectively an individual decision as to who can supply the best product or service at the right price. In the case of the OP it would appear that he is paying an extremely large interest rate to an institution when he does have alternative options. In his position he may wish to forgo some of the "possible" benefits of dealing with a CU for a lower interest rate from a Bank or Building Society.
 
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Margie said:
Where would you pay off a €25000 loan with no penalty?
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Many lenders offer variable rate loans with no penalties for early redemption. All variable rate owner occupier mortgages from all lenders are one obvious example since by law they must not impose penalties for early redemption.
I'm thinking you must work in a bank.
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You are thinking wrong so if you are thinking of me.
The fact remains that most people prefer the credit unions as do i.
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Some people are not aware of the pitfalls with borrowing from a CU and are not aware of the possibly better options available to them.
i can't stand the banks.
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Fair enough. At least now we know that you're not objective on this issue.
 
Margie said:
If the credit unions are such blood sucking vampires as you have just made them out to be then why does anyone bother with them.
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Complete nonsense-nowhere do I imply anything of the sort. If you look at any posts I make in threads where people are finding it hard to refinance existing debts, I always recommend CUs over sub-prime lenders.

Margie said:
i'd like to have alist of all of the banks that allow you to pay off a loan with no penalty please.
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ANY variable rate loan should allow this facility. Also fixed rate loans offered by Tesco.

The only point that I wanted to make is that many of the facilities offered by the CUs can lead to problems down the line and I don't like seeing them promoted without a 'health warning' attached. Expensive credit with strict terms and conditions can sometimes be in the best interests of the borrower.
 
Clubman has said it all with the ''But they are far from the utopian solution to consumer savings/credit that many people like to believe usually having had it mindlessly inculcated in them for years by past generations that this is the case. It's one of those "well known facts" that is nothing of the sort that CU's are the cheapest/best lender for people.'' This certainly is the mindset of the general public handed down by the previous generation. There is serious competition out there now which wasn't there in past decades. CU savings rates are disastrous and lenders like Tesco are offering stiff competition. The big plus's for CU's are convenience and the personal touch of self weekly transactions. How long they will continue to hold the higher ground remains to be seen. Maturing SSIA's will not help their lending targets. Bill Hobbs recently resigned from the Credit Union Development Association. Was it because he was frustrated at lack of progress in coming into the 21st century?
 
CU's
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have arguably not treated their customers/members well in the past by blowing millions (€34M I believe?) on [broken link removed] (engaging at least three sets of consultants along the way before canning the project),
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I do not see a correllation between the treatment of members and a failed IT project. The failed project was by all accounts a disaster of epic proportions but unless you contend that this was done intentionally, it does not reflect how members are treated.

There are definitely a lot of ways in which credit unions can better meet memebers needs. Based on the specific comsumer's needs there are cases where credit unions are the best options but there are now and will always be many cases where other financial institutions will meet your needs better.
 
oldtimer said:
Bill Hobbs recently resigned from the Credit Union Development Association. Was it because he was frustrated at lack of progress in coming into the 21st century?
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Did he actually resign? I thought that there was just talk about him considering this step. Did he take it in the end?
 
ontour said:
I do not see a correllation between the treatment of members and a failed IT project. The failed project was by all accounts a disaster of epic proportions but unless you contend that this was done intentionally, it does not reflect how members are treated.
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As members of the ILCU individual CUs and their members had to foot the bill for this mess. They were badly treated by incompetent management allowing this mess to develop. Just because it was not deliberate doesn't excuse it in my opinion.
There are definitely a lot of ways in which credit unions can better meet memebers needs. Based on the specific comsumer's needs there are cases where credit unions are the best options but there are now and will always be many cases where other financial institutions will meet your needs better.
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I agree. In some cases the CU may be the best option for some people. I know of some people for whom it is the only option due to irregular income and no banking track record to speak of. But they are certainly not always the best, only, cheapest option as some people still seem to assume.
 
Oh please let's get real here. The fact is that credit unions are the more friendly lending option.

i remember a couple of years back every time i went into my bank they were asking me did i want a loan or a credit card. the attendant went through such pains to get me to sign up for a credit card (i didn't) one day that she made a mistake in my lodgement. a while later i decided to apply for a car loan and was turned down - boggle the mind.

i walked into the credit union and got my loan no problem. i am expressing a personal opinion here. another example - my husband and i went though a few banks to get our mortgage. The ones that turned us down are now the ones that send us literature and are trying to snap the hands off us.

What i would say to the OP is to pay alittle extra here and there off the loan when you can afford it and you won't feel paying it off. This is an option that BANKS DON'T GIVE.
 
Margie said:
Oh please let's get real here. The fact is that credit unions are the more friendly lending option.
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What i would say to the OP is to pay alittle extra here and there off the loan when you can afford it and you won't feel paying it off. This is an option that BANKS DON'T GIVE.
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If you are willing to pay what will often be a premium for friendliness and flexibility then of course that's your prerogative. But please don't try to make out that the CUs are generally or always a better option than other lenders. You already told us that you can't stand the banks so there is not much point in trying to reason with you on that issue to be honest.
 
ontour said:
There are definitely a lot of ways in which credit unions can better meet memebers needs. Based on the specific comsumer's needs there are cases where credit unions are the best options but there are now and will always be many cases where other financial institutions will meet your needs better.
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Yes-I agree.
 
ClubMan said:
You already told us that you can't stand the banks so there is not much point in trying to reason with you on that issue to be honest.
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i can't stand the way banks operate. Eg. recently BOI had a 100%mortgage week for 1st time buyers. i walked into the bank and there were balloons and bunting and fancy posters up everywhere. A colleague of mine thought to himself great i'll go and inquire. his combined income with his partner is €65k p.a. and he was refused because you must have a joint income of €80k p.a. now that is ridiculous. he stated to the mortgage advisor that if you were getting that type of income you are more than likely both in professional roles and wouldn't need a 100% mortgage and the advisor AGREED with him.

False advertising i say. You won't get that type of misleading info in the credit union.
 
Oh! :-S

This post just made me ring the credit union to check my interest rate. I was always very niaive when it came to the credit union thinking they are there for the benefit of the community etc....

Okay, I just rang and I pay €600 per month to them.

Balance of loan - €20668.09 on 12.5%%%% (On a reducing balance, whatever that may be). 5 Year term.

Feel like a right goon now!
 
Margie said:
False advertising i say. You won't get that type of misleading info in the credit union.
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What about CUs (up to 1st April 2005 when they were forced to change) failing to quote APRs on loans and even when they do not pointing out that having to maintain money in deposits/shares while borrowing further increases the cost of borrowing?
 
gotsomenow said:
Balance of loan - €20668.09 on 12.5%%%% (On a reducing balance, whatever that may be). 5 Year term.
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They are obliged to quote you an APR on that. While it will not take into account the cost of having to maintain money in deposits/shares while borrowing it should be more helpful than this obfuscated explanation in comparing rates with other lenders.
 
Margie said:
i can't stand the way banks operate. Eg. recently BOI had a 100%mortgage week for 1st time buyers. i walked into my bank and there were balloons and bunting and fancy posters up everywhere. A colleague of mine thought to himself great i'll go and inquire. his combined income with his partner is €65k p.a. and he was refused because you must have a joint income of €80k p.a. now that is ridiculous. he stated to the mortgage advisor that if you were getting that type of income you are more than likely both in professional roles and wouldn't need a 100% mortgage and the advisor AGREED with him.

False advertising i say. You won't get that type of misleading info in the credit union.
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Dear Margie

The Bank was perfectly correct, and probably saved your friend serious heartbreak going forward. Banks obviously have criteria which must be met, stricter for 100% Mortgages, and just as well.

Imagine the heartbreak and stress which happens when the Mortgage cannot be repaid. People and Banks have a duty to be be realistic with loans which are secured on property, your home. [broken link removed] that Joint borrowers must have an Income of €80k.

Also, CU's are not that generous with defaulters, see [broken link removed] for a report from 2004, which shows them second only to BoI in persuing defaulters through Court Judgements.

The Revenue Commissioners are the top plaintiffs in Ireland and have been awarded judgments totaling €137m. The biggest user of the courts is Bank of Ireland who won judgments against 10,444 customers for debts totaling €57m.

Credit Union are the second biggest users of the court endeavouring to force clients to pay monies owed. Credit Unions brought 8,327 people to court and were awarded €49m in judgments. Other top 20 court users include AIB, Eircom, Ulster Bank, Independent Newspapers, Everyday Finance and the ESB.
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For the OP 5Times, hopefully you have taken the steps outlined by me in an earlier post to escape from the clutches of the evil CU ;)

(I jest, as a long time member of both my local and occupational CU)
 
gotsomenow said:
Oh! :-S

12.5%%%% (On a reducing balance, whatever that may be).
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Whats a reducing balance?? I borrowed 40k and according to the contacts when im finished paying I will have paid back 79k in total. Am i insane or is this normal.

5times
 
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