More credit union problems- help req'd

[Elliesausage]

Hi Everyone,

I've written previously about my problems with CU.

Long story short there is currently approx €10k owed to my credit union, €2k in shares, and arrears of €5k...yes €5k.

It has been a tough struggle for me to keep up with my repayments. May 2011-Dec 2011 they received €400 monthly from me.

I lost my job in Dec 2011 and from Jan-Oct 2012 I paid €300 monthly. I Have been unemployed all year until Sept where i picked up 12 hrs a week part time work on minimum wage. Then my partners work dried up.

Nov 2012 I was unable to pay them anything, and stuipidly I burried my head in the sand and didn't contact them. Simply because I didn't know where i was going to find any money to pay them. We had our ESB cut off in Nov and every cent we had went towards having the power turned back on.

We are now trying to sell off my partners vehicle in the hope of raising some cash to pay the Credit Union, or mortgage and live for the month of Dec. My part time work finishes at Christmas.

Just have some questions on a couple of issues.

1) If i wrote to the CU to have my shares offset against the loan, would they take my previous history of not being able to pay as a reason for refusing this request? If request was granted would they give me a month or two off repayments untill my partner goes back to work early Feb (seasonal work- he will be back to work then)

2) What help (if any) could MABS give me?

I don't want to be in the financial position we are in, I hate all of this, and receiving letters from the CU- stating that 'ever opportunity has been afforded to you (me).....yet your account is continously accruing arrears' is a bit of an unnecessary slap in the face.

They would not do anything for me re interest rate freeze/interest only/ reduction in interest rate, they point blank refused to transfer my shares to my loan account, and have constantly badgerd me with phone calls when as little as a day later then normal with my repayments (even though it was still that current week and i had planned on going in with my weekly repayment later that day- i just didn't have time to go in on a Tuesday as normal)

I am wondering what opportunities they have afforded me?- not taking me to court?..at this stage it would be a relief if they did no judge in the right mind would make me pay €300 or €400 a month given my current income.

 

[SarahMc]

How much is outstanding on the loan?

 

[Slim]

Hi

I am sorry to hear that your situation has not improved over the year.

My advice is as follows: (1) Contact MABS as soon as possible. It may take a while to get an appointment so, in the meantime, write to the CU and advise them you have contacted MABS and will get back to them as soon as possible. (2) Do not pay anything more to the credit union until you have discussed the situation with MABS. (3) Write again to the CU requesting that your shares be offset against the loan. Ask them if your loan has already been 'written off'. If it has, no further interest will accrue.(4) Depending on the advice from MABS, make no further payments to the CU and advise them you will consent to an order of the court or a judgement pending the introduction of the Personal Insolvency legislation. (5) Search here on AAM for many threads relating to this issue.

Slim

 

[Elliesausage]

Hi

Thanks for your reply and advice Slim. Just wondering what consequence this course of action may have on my guarantor?

 

[Bronte]

Oh dear Ellie you didn't mention the guarantor until now so you cannot do what Slim suggested.

The reason the CU are being so 'aggressive' is because there is a guarantor and that guarantor is fully liable for your loan if you default.

What is quite clear is that you cannot afford to pay the CU as you are having trouble with basic necessities such as electricity.

Does the guarantor know the trouble you are in. Ultimately if you don't let them know all your are doing is putting off the enivitable. I presume it's a family member. If I were that guarantor I would prefer to know and my solution to the guarantor is for that person to pay off the loan (if they can) and you pay the guarantor 10 Euro a week interest free until you pay it all back.

If the guarantor is a strong person they themselves, with you, could negotiate with the CU and they may write off some of the arrears/and or interest. CU are open to deals, I've negotiated one myself, but the guarantor needs to have a meeting with them. All the CU wants now is to get rid of this debt.

If the guarantor cannot afford to pay it off, then the guarantor should start making payments directly to the CU each week. Please inform the guarantor of the mess as it's only going to cost a lot more to the guarantor if you don't.