How to get interest stopped CU Loan

P

pip

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Need some advice we have a credit union loan and like everyone at the moment hit hard times 3 years ago and my husband lost his job we were lucky though we had no major loans other than the 15k with the credit union no credit cards or mortgage. we had a meeting with credit union this morning and basically they are harassing us looking for more money we have only managed to meet the interest on the loan for last 3 years and only 52euro actually come of the loan amount and they took all the shares against arrears and interest.

We pay them 30 euro a week and we have asked that they stop the interest for a while 6 months to 1year to allow us play catch up and pay off some of the outstanding loan amount. They are very unwilling to help, does anyone know is there anything i can do about this we feel like we are getting nowhere and this loan is going to be hanging over our head for years?
 
Hi Pip,

MAB's should be your first stop, I would recommend you let Credit Union know you have approached them and that they will be in touch with them in due course and don't engage further with the C.U. MAB's will correspond with them on your behalf. Trying to deal with it yourself is always tough as you personalise the issue, having someone look at the cold hard facts in a impartial manner usually achieves the best results!!
 
Hi Pip
they took all the shares against arrears and interest.
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This is to your benefit. They are probably charging you 9% on the loan and paying you only 1% on the shares.

By setting the shares against the loan, your net interest would be substantially reduced.

The Credit Unions take the view - you have borrowed our members' money and we want it back. By asking them to stop charging interest, you are, in effect, asking them to write off part of your debt. They don't like doing that.
 
We have been to MABS and are waiting on another appointment. We have paid there interest for the last 3 years we are just asking for a bit of time to play catch up not trying to rip them off or get out of paying it just seems to me they are happy to take our 30 euro a week to cover the interest and but we are still left the debt of 15k hanging over us and cant reduce this amount because we are only meeting the interest. I have to put a letter in writing to the board to request the account to be charged off but they have said the board are unlikely to do this.
 
I would advise you to suspend any payments pending discussion with MABS. The CU will write off your loan and interest will be frozen. Let MABS re-negotiate a payment with the CU for you.
 
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