Unemployed 20 yo with €4k outstanding CU loan. wkly pmts €28 int & €2 capital, option

If he was under 18 when taking out the loan it is void. It doesnt matter if he had a guarantor. If his mother gave an indeminty thats a different thing. Check the wording properly. If it was a guarantee, he should write to the CU and say that he is going to stop paying the loan as it is void due to the age when he took it out. If they threaten legal proceedings, let them. No court in the land will enforce such an agreement. I can't believe the CU did this.
 
porridge said:
ALL

Information to hand at the moment:

Amount of loan: €8000. Period of agreement 1.7 years. No. of repayment installments 89. A.P.R 12.74%. Total amount repayable €8851.68. Date the loan was given 06/02/09 when he was 17 years.


DATE: OPENING BAL: LOAN: INTEREST: ARREARS: PAID IN: CLOSING BAL
09/09/10 €4629.49 €5.65 €24.35 €65 €50 €4623.84
14/09/10 €4623.84 €22.40 €7.60 €65 €30 €4601.44
14/01/11 €4502.64 €18.55 €41.45 €275 €60 €4484.09
01/04/11 €4461.59 €0.00 €55.74 €490 €35 €4461.59
Click to expand...

Interest on this loan is around €7.60 per week - you can see this when he paid on 09/09 and then again on the 14/09. He is getting charged so much interest cause he is simply not paying every week. Credit union interest goes down every week as long as you pay. If he really was 17 at time of contract it is void, I would advise you strongly to contact citizens advice instead of MABS in this case as I think he has a really good chance of winning a case under capacity to contract. All it takes is a phone call - good luck.
 
refer to the criteria that makes a person eligible for the loans for unemployed
 
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