Credit Union still insisiting on guarantor

D

Danielle24

Registered User
Messages
209
Hi,

Not sure where to post this, feel free to move etc if not appropriate for here.

Basically i've been with credit union for about 8/9 years. I've cleared a large amount of loans with them, however they're still insisting I need a guarantor if I want a loan with them. They keep saying when you clear this loan etc, however I cleared my last loan bar one payment as needed to top up at the time and they still wanted a guarantor. I haven't missed a payment with them in about 6 years but they're still saying well there's a history on the account. Is this normal? I know they're gone very strict but it seems OTT.

They phoned me before about a relatives account who owed them money and have also mentioned when i've gone in to them, and it was mentioned that this could affect me.

Its so humiliating to have to ask people, i'm a proud person and don't like to rely on people for anything.
 
Danielle24 said:
Basically i've been with credit union for about 8/9 years. I've cleared a large amount of loans with them, however they're still insisting I need a guarantor if I want a loan with them. They keep saying when you clear this loan etc, however I cleared my last loan bar one payment as needed to top up at the time and they still wanted a guarantor. I haven't missed a payment with them in about 6 years but they're still saying well there's a history on the account. Is this normal? I know they're gone very strict but it seems OTT.
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I'm a bit confused now. Do you still own them money? How much? Is it overdue? Are you looking for a further loan now?
Danielle24 said:
They phoned me before about a relatives account who owed them money and have also mentioned when i've gone in to them, and it was mentioned that this could affect me.
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Bizarre. How close a relative are we talking about?
 
Complainer said:
I'm a bit confused now. Do you still own them money? How much? Is it overdue? Are you looking for a further loan now?

Bizarre. How close a relative are we talking about?
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Sorry, I might not have explained myself very well. Yes I still owe them money however before I applied for my current loan they'd said if I cleared my last loan that I could apply for another loan. I only had one payment left on my previous loan when I applied for current loan and they said I still needed a guarantor. I want to top up my loan and they said no I have to have a guarantor, it seems no matter if I clear 100 loans with them they're going to insist on a guarantor. My account hasn't been overdue in about 6 years. I never miss a payment. I owe them 1600e, have 500e in my savings and I am paying them back 200e a month.

Immediate family.
 
Danielle24 said:
Hi,
They keep saying when you clear this loan etc, however I cleared my last loan bar one payment as needed to top up at the time and they still wanted a guarantor. I haven't missed a payment with them in about 6 years but they're still saying well there's a history on the account. Is this normal?

They phoned me before about a relatives account who owed them money and have also mentioned when i've gone in to them, and it was mentioned that this could affect me.
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The bold above is to emphasise that they may have reservations about your ability to repay the loan. Depends on your savings to loan ratio. If you are an adult in employment with a reasonable loan/savings ration, I think you should stand your ground on the guarantor.

As to the underlined piece above, I have reservations about them ringing you about a relative's loan unless you were a guarantor yourself. If so, that will definitely affect your borrowing capacity as long as your relative is in arrears and you are guarantor.

There are what is called "connected accounts". For example, if you were dependant on a parent or partner for your existence, if they are in arrears you may not be as able to borrow. If you are independent of your parent or partner or other relative, they cannot connect you.

I think a chat with the manager might help. Slim
 
Thanks Slim.

I've had loans pretty much constantly in that 6 years for various different reasons. I have not missed on payment since then. I'm not a guarantor for the relative and have not been at their residence for about 7 years. I have also being working for 10 years and have a good job/salary at the moment. I just feel so frustrated with their carry on. I got quiet annoyed with the girl on the phone this morning and the same when they rang about relatives account, threatened to close my account if they didn't take my name off their account as a contact etc.
 
Danielle24 said:
Thanks Slim.

I've had loans pretty much constantly in that 6 years for various different reasons. I have not missed on payment since then. I'm not a guarantor for the relative and have not been at their residence for about 7 years. I have also being working for 10 years and have a good job/salary at the moment. I just feel so frustrated with their carry on. I got quiet annoyed with the girl on the phone this morning and the same when they rang about relatives account, threatened to close my account if they didn't take my name off their account as a contact etc.
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Why is your name on your relative's account as a contact? Maybe that is why they are ringing you? Anyway, insist that you are your own person and not dependant on anyone else for a measly CU loan. Slim
 
Contacting the OP about a loan that's nothing to do with her seems very odd. Surely there are issues of confidentiality for the other party, not just the OP?
 
They said they had my name down they obviously knew we were related. To be clear I never gave them authorisation to do this. I have told them that I have more than proved myself but they're not budging. Anyways there's a credit union in another town nearby which I would probably be allowed to open an account in as I am not based in either town just outside them, so i'm gonna open one with them and start saving for a loan with them and clear with the other CU.
 
horusd said:
Contacting the OP about a loan that's nothing to do with her seems very odd. Surely there are issues of confidentiality for the other party, not just the OP?
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I would have thought so, but seemingly no. They said this could affect me applying for a loan in the future which to be honest I think is insane.
 
Danielle24 said:
Hi,

Not sure where to post this, feel free to move etc if not appropriate for here.

Basically i've been with credit union for about 8/9 years. I've cleared a large amount of loans with them, however they're still insisting I need a guarantor if I want a loan with them. They keep saying when you clear this loan etc, however I cleared my last loan bar one payment as needed to top up at the time and they still wanted a guarantor. I haven't missed a payment with them in about 6 years but they're still saying well there's a history on the account. Is this normal? I know they're gone very strict but it seems OTT.

They phoned me before about a relatives account who owed them money and have also mentioned when i've gone in to them, and it was mentioned that this could affect me.

Its so humiliating to have to ask people, i'm a proud person and don't like to rely on people for anything.
Click to expand...

Try to get yourself into a credit situation. IMHO taking out loans time and time again is not a good situation to be in.
 
Danielle24 said:
They said this could affect me applying for a loan in the future which to be honest I think is insane.
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Insane indeed - ask for them to give you this in writing, and when they refuse, let them know that they have shot themselves in the foot.
 
horusd said:
Contacting the OP about a loan that's nothing to do with her seems very odd. Surely there are issues of confidentiality for the other party, not just the OP?
Click to expand...

But credit unions are small and everybody knows everybody. It goes the other way too, say your parents and siblings have loans and are good payers they credit union is bound to think that's a family who pays it's debts.
 
Danielle24 said:
. Anyways there's a credit union in another town nearby which I would probably be allowed to open an account in as I am not based in either town just outside them, so i'm gonna open one with them and start saving for a loan with them and clear with the other CU.
Click to expand...

Your credit union must have a very good reason for not wanting to give you another loan outright. It's not good to be constantly in debt. Instead of getting another loan, how about saving and learning to buy from savings rather than borrowing to spend?
 
I suspect this may not be unique to yourself. Credit Unions are increasingly wary of giving a top up on an existing loan since the Central Bank of Ireland issued Section 35 in Nov 10.

A few points from Section 35:

Minimum Liquidity Requirements

1.1 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]A credit union must at all times keep a proportion of its total assets in liquid form so as to enable the credit union to meet its liabilities as they arise[/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]2[/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]. [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]
[/FONT][/FONT]1.2 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]Credit unions are required to maintain a [/FONT][/FONT]minimum Liquidity Ratio of not less than 20 per cent3 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]on an on-going basis[/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]4[/FONT][/FONT][FONT=Verdana,Verdana][FONT=Verdana,Verdana]. [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]
[/FONT][/FONT]1.3 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]Notwithstanding this minimum liquidity requirement, it is the responsibility of the board of directors of each credit union to decide on the amount of liquid assets to hold in excess of the minimum, taking prudent account of the scale and complexity of the credit unions business, its funding requirements and prevailing market conditions. [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]
[/FONT][/FONT]1.4 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]Where it is considered appropriate, the Registry may set a ratio for a credit union, or a category of credit unions, that is higher than the minimum Liquidity Ratio. [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]
[/FONT][/FONT]1.5 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]Credit unions whose liquid assets are in excess of 20 per cent of unattached savings must continue to maintain liquid assets at such higher levels as are deemed prudent. [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]
[/FONT][/FONT]1.6 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]The board of directors of the credit union must inform the Registry immediately should the Liquidity Ratio fall below 20 per cent and take the appropriate measures to restore the Liquidity Ratio to the required level as soon as possible. The timeframe in which the ratio will return to compliance must be agreed with the Registry.
[/FONT][/FONT]
Lending Over Five Years
Minimum Liquidity Ratio
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]>20% and <25% [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]at least 25% [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]≥25% and <29% [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]over 25% [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]≥29% [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]at least 30% [/FONT][/FONT]


Lending Practices for Rescheduled Loans

​
2.1 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]Loans must only be rescheduled in exceptional circumstances, at the request of the member and where relevant, with the agreement of the guarantor. [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]
[/FONT][/FONT]2.2 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]An application to reschedule a loan must be supported by appropriate fact finding and a new loan application. The application must be accompanied by evidence of the members request to reschedule the loan and evidence of the change in the members circumstances.[/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]
[/FONT][/FONT]2.3 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]Loans must only be rescheduled with the agreement of the member and where relevant, the guarantor. A new credit agreement must be drawn up and the member must be made aware of any changes to the information contained in the original credit agreement, including changes to the cost of credit. [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]
[/FONT][/FONT]2.4 [FONT=Verdana,Verdana][FONT=Verdana,Verdana]The new repayment schedule put in place for [/FONT][/FONT]all [FONT=Verdana,Verdana][FONT=Verdana,Verdana]rescheduled loans must not be less frequent than quarterly. [/FONT][/FONT]
[FONT=Verdana,Verdana][FONT=Verdana,Verdana]
[/FONT][/FONT]2.5 In general, further credit must not be granted where a loan has been rescheduled.

Credit Unions have always been seen as an easy way to obtain credit, but those days are gone.

CUs must be more prudent nowadays regardless of the customers previous credit history, due to new regulations introduced.

The above may not be in the OPs case, but it reflects how CUs are operating in these times.
 
MANTO said:
[FONT=Verdana,Verdana]
[/FONT]2.5 In general, further credit must not be granted where a loan has been rescheduled.

CUs must be more prudent nowadays regardless of the customers previous credit history, due to new regulations introduced.

The above may not be in the OPs case, but it reflects how CUs are operating in these times.
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And that's all only right and proper. It should never have been any other way.
 
Danielle24 said:
They keep saying when you clear this loan etc, however I cleared my last loan bar one payment as needed to top up at the time and they still wanted a guarantor.

Its so humiliating to have to ask people, i'm a proud person and don't like to rely on people for anything.
Click to expand...

But you said above that you had not paid back the loan.

Also seem to remember that in previous threads you had money management issues. You have to ask yourself, did I clear all prior loans with the credit union as per the original agreement, if you did not, notwithstanding that you did eventually clear the loans then you do not have a good credit history. And it's not a good credit history to continuously borrow to spend no matter.

Where is the humiliation? Don't see this anywhere? If it's too difficult to ask a guarantor then how about going the old fashioned route of saving and then spending when you can afford it.
 
Bronte said:
But you said above that you had not paid back the loan.

Also seem to remember that in previous threads you had money management issues. You have to ask yourself, did I clear all prior loans with the credit union as per the original agreement, if you did not, notwithstanding that you did eventually clear the loans then you do not have a good credit history. And it's not a good credit history to continuously borrow to spend no matter.

Where is the humiliation? Don't see this anywhere? If it's too difficult to ask a guarantor then how about going the old fashioned route of saving and then spending when you can afford it.
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I have cleared numerous loans with the Credit Union. The loan i'm applying for is for college fees not "spending". You might not be embarrassed or humiliated in asking this request of someone but I would be.
 
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