Loan Arrears Advice!

[TPD6479]

I have a personal loan with an Irish bank - a few months ago I called them to let them know I was going to have trouble making the repayments for the next 3 months and to try to make an arrangement with them to avoid any issues. They weren't very helpful, but agreed that I could make reduced payments for these months - but that it would probably affect my credit rating. This agreement ended in August, and I was meant to call to make another arrangement, however with a new baby to deal with this got overlooked. I got paid last week into my current account, which is with the same bank, and now find that they have taken the entire arrears amount from my current account without my knowledge. Are they allowed to do this? I was happy to arrange an increased repayment amount for the next few months to clear the arrears but I can't afford to pay the whole amount in one go - they didn't even contact me first to let me know they were taking the funds from my account. Is there anything I can do? I am now left with €21 to last until next pay day, and other bills have been left upaid

 

[ClubMan]

I got paid last week into my current account, which is with the same bank, and now find that they have taken the entire arrears amount from my current account without my knowledge. Are they allowed to do this?

Possibly - depends on the terms & conditions of the loan agreement.

Is there anything I can do? I am now left with €21 to last until next pay day, and other bills have been left upaid

Get onto them ASAP and explain the situation and see if they can accommodate some further restructuring of the loan. I'd say the chances of them refunding the money drawn down already will be slim (assuming that taking it was not in breach of your loan agreement) but you should argue your case with them.

 

[44brendan]

Immediately cancel the loan Direct Debit arrangement with your existing Bank. As per previous response unless you have a revised repayment agreement in writing there is very little chance of you being refunded part of the repayment taken.
However you should write to them and advise them of the "verbal" agreement made and your consequent financial difficulty. It would benefit your plea if you have the name of the official you dealt with previously. Cancelling direct debit will mean that whatever revised payment agreement you make is now within your control. You can manually make the payments by direct lodgement or credit tansfer.