Forgotten personal loan received 4 yrs ago

Z

zazoo

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Hi there,

I'm in a bit of a quandry and am hoping some-one can point me in the right direction.
5 years ago I got a loan through BOI via An Post and paid it off in a year. At the end of that year however I was out of work for 3 months and increased the loan for a total of 10k, it was coming out by direct debit. I don't look at my accounts very much and never took any heed of when the direct debit stopped. I make 42k p.a, have no mortgage, a cc bill of approx. €300, a small loan for 1k and an od for 5k. I wanted to consolidate the loan and cc into one payment per month over the forthcoming year and my bank that I have a good relationship with turned me down on the basis of an unpaid 10k loan with BOI.
I had completely forgotten about it and never received any letters about an os loan, I have moved address though so that may explain the lack of correspondence.
I've requested a copy of my ICB report and am wondering what the next step should be? I've made an appointment with mabs but don't even know where to start with contacting BOI as the loan is old but I want it cleared as it's going to effect my credit rating. I am however reluctant to contact them about this old debt in case it's gone to court order stage. I'd be grateful if there were any ideas/pointers? I don't understand how this hasn't cropped up before, especially as my role in work required me to be approved by the Financial Regulator and they did a background check and nothing showed. Any advice would be greatly appreciated, I've always paid regularly into any loan I've had. Thanks
 
Does it show up on the ICB report? i would honestly recommend making an appt with BOI to discuss this. I had a loan with them years ago (about 7) and a final direct debit was not paid, i didnt receive any letters from them and assumed it was paid in full.

When i applied for a loan about 2 years ago they said i had, i think it was 10 pound outstanding. I paid it and everything was fine, it didnt show up on the ICB (also had to be clear for a job)

I know the amounts are considerably different but would advise you contact them directly.
 
I don't know if it's on the ICB report, I presume so but I've ordered one to make sure. I think I'm going to just have to grab the bull by the horns and ring BOI, see what they have to say. Hopefully it won't effect my credit rating going forward...
 
"I had completely forgotten about it and never received any letters about an os loan, I have moved address though so that may explain the lack of correspondence."

So how exactly were they supposed to contact you ? Probably numerous letters went out to your old address. The worst thing that can appear on your credit rating is an unpaid loan. You'd better pay it off before you have any chance of getting a new loan.
Look at it from the other point of view. Would you loan someone money if they never paid you back the last time ?

That's exactly what the ICB is for
 
I am suprised that the Bank hadn't chased you down by now for the 10k. As pointed out by Perplexed, the ICB is there to protect the lender primarily. An ICB record of any loan will remain on your record for five years after the loan is closed. So even if you repy the loan today it will exist on your record until 2012.

How do you forget about a €10k loan???
 
I presumed the DD was still coming out every month, I only moved house recently and never heard a peep about it. It would have been paid off about 2 yrs ago and just never thought about it. I'm waiting on my ICB report at the moment to make sure that it's still outstanding then I'll call BOI and try arrange something. Hopefully they'll accept a payment plan of some sort and try get it paid off ASAP
 
zazoo said:
I'm waiting on my ICB report at the moment to make sure that it's still outstanding then I'll call BOI and try arrange something. Hopefully they'll accept a payment plan of some sort and try get it paid off ASAP
Click to expand...
If it hasn't appeared on your ICB report it is simply because BOI havn't registered it yet. Technically you still owe the loan (though it isn't having any adverse effects on you while not shown on your ICB) and if left as is BOI may register it with the ICB at any point in the future.

By sorting it out directly with BOI (potentially with the help of MABS) you may be able to avoid future legal costs, penalties, interest etc..
 
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