Unable to repay credit union loan

Hi guys,

Wondering if anyone can give me advice on this. I have no other debts apart from a credit union loan which I had been paying up until I lost my job a few months ago. I approached the CU and informed them of my job lose and they asked that I keep them updated on the matter but they would prevent any letters coming out to me.

I went back over today, again to update them, and spoke with the manager. I informed him that I was still unemployed and things weren't looking good. He asked that I maybe look at just repaying the interest for the time being but as I am on benefits now even that seems a lot to ask. I asked if they could freeze the interest payments until such times as my situation changes and he said they couldn't do that - the only way that could be done is to close the account down and set up a repayment plan for the remaining loan amount. This won't help either for if I can't afford to repay the interest how can I set up a payment plan!

Whilst being a nice person to speak with he simply was not leaving any room for manoeuvre for me.

Can anyone offer me advice on the matter? I was under the understanding that the least that could have been done under the circumstances is a freezing of the interest to things get better for me? But to simply rule out any chance of assistance from the CU under the circumstances does not sit right at all.

I feel like simply sticking the finger up at them for their callous attitude :mad:
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Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Why should other members of the credit union pay your interest for you?
    he simply was not leaving any room for manoeuvre for me
    What room for manoeuvre do you circumstnces give the credit union? They offered a reduction in payments. You refused it.

    See CAB to see if they can give advice.
  • Ames
    Ames Posts: 18,459 Forumite
    Having dealt with commercial companies who really don't give room for manoeuvre, he's giving you loads. Why not pop over to the DFW board, put up a statement of affairs and work out how much you can afford to pay them - even if it's jut a fiver a month, at least you're paying something.
    Unless I say otherwise 'you' means the general you not you specifically.
  • opinions4u wrote: »
    Why should other members of the credit union pay your interest for you?

    What room for manoeuvre do you circumstnces give the credit union? They offered a reduction in payments. You refused it.

    See CAB to see if they can give advice.

    With the utmost of respect to your good self it is that sort of attitude that is most unhelpful. It isn't a case of me refuing anything.

    I have not been out of work since I was 17 years old and I'm going on 40 now. I repay every penny that I owe or have owed in the past but for the first time in my lie I find myself unemployed and receiving benefits of £60 per week. That's £240 per month of which the CU are looking £50 of. In that context that is a hell a lot of money. Unlike a lot of other people who may have simply ignored the CU I stepped up to the mark and accepted my responsibility to them, laid my circumstances on the table being upfront and honest. The manager himself awknowledged this.

    I cannot afford to pay that kind of money at present and the manager was not prepared to move an inch for me. Maybe there is nothing he can do; either way I think it is the most logical conclusion for the CU to accept that to continue to lump interest on because I can't afford to pay is counter-productive as it will simply mean that the outstanding amount grows thus making it less likely that I can repay anything. This equals them not getting a penny and me walking away from the debt due to simply not being to afford it.

    I think when genuine people ask for advice or assistance on forums like this it is your calibre of attitude that simply adds to the issue as opposed to trying to be helpful.
  • Ames wrote: »
    Having dealt with commercial companies who really don't give room for manoeuvre, he's giving you loads. Why not pop over to the DFW board, put up a statement of affairs and work out how much you can afford to pay them - even if it's jut a fiver a month, at least you're paying something.

    My friend was in a similiar situation a year ago and owed Capital One £4000 on a credit card. They froze the interest and gave him a payment break of 6 months then as he was still out of work they kept the interest frozen and setup a repayment option for him. So I was going into this situation expecting something similar in the least considering these options were proposed by a commercial bank and I am dealing with a community organisation.
  • chalkie99
    chalkie99 Posts: 1,618
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    They have offered you interest payments only with no capital repayment and they have also offered to set up a repayment plan.

    That is way better than you can expect from any private institution and you need to realise that rather than criticise Opinions 4 U attitude which is, unfortunately for you, simply realistic.

    So, your loan repayments are £12.50 a week? Can you really not find a couple of hours casual employment a week to deal with this? I'd even go and wash windows or cars to raise that little.
  • chalkie99 wrote: »
    They have offered you interest payments only with no capital repayment and they have also offered to set up a repayment plan.

    That is way better than you can expect from any private institution and you need to realise that rather than criticise Opinions 4 U attitude which is, unfortunately for you, simply realistic.

    So, your loan repayments are £12.50 a week? Can you really not find a couple of hours casual employment a week to deal with this? I'd even go and wash windows or cars to raise that little.

    I'm sure you would too. I had thought of a few ways to get an extra few pounds such as painting but after speaking with the job club apparently I am not allowed to! If I do do anything I must inform them and any more than £5 per weeks earnings means that my benefits get messed about.

    Do you think I could get away with washing windows or cars or maybe painting without telling them and if so is that not illegal?
  • DCFC79
    DCFC79 Posts: 40,598
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    Your benefits dont get messed up you just get a reduced amount in benefits.
  • DCFC79 wrote: »
    Your benefits dont get messed up you just get a reduced amount in benefits.

    Ah thanks for that. That is similiar to what the girl in the jobs centre said she said that depending on what I claimed to earn every week my benefits would change accordingly but that that would in turn mess up my benefits and also delay them.

    Off the record she said to me that it defeats the purpose working for so little as if I earned more then £10 my benefits could drop more than I earn. On one hand I see some logic in that but it is sickening when I hear about people working and claiming benefits and I have never asked for 1 penny from the government in all my adult life and I can't earn a few pound extra each week if I notify them.

    That is way off the subject though. My original request was for advice on how to deal with the CU and if they have any option at their disposal to help me temporarily or must they risk me not being able to repay a penny because I can't afford it? Even if it went to court I am sure the judge would say likewise that you can't get blood from a stone and I did ask them to bear with me for a period.

    Just don't know what to do.
  • CHR15
    CHR15 Posts: 5,193
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    Sorry OP but you are coming across as completely beligerant.

    Credit Unions are an absolute godsend to so many people, they take a HUGE risk by lending to people no sensible lender will even look at.

    You say "I feel like simply sticking the finger up at them for their callous attitude", well that is exactly what you are doing already.
    You want to completely ignore this debt until you feel you are ready to start again, with no consequence. This will have a knock on to every other borrower (unless you desire a specific agreement solely for you, not anyone else).

    They are offering you help but you are refuting that help.

    You go on to imply it is not worth working as it will risk your benefits, from your working days, can you see how people read that statement??
    Appreciate that is not what you meant, but it is what you said.

    It doesn't sound like you are interested in their "new account with a repayment plan" offer.
    How do you know what this arrangement will be? You are dismissing it out of hand as it will require you to pay "something" toward your debt.

    You could go over to the DFW board and make a post there. You will immediately get "GOOD" advice about cancelling your mobile phone contract, ditching Sky TV, laying the car up, switching utilities, reviewing food bills etc... but to achieve anything, you have to WANT to achieve something.

    Besides, the whole point of a CU is to SAVE with them, and take advantage of the superb loans they offer for their savers.
  • fatbelly
    fatbelly Posts: 20,380
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    Off the record she said to me that it defeats the purpose working for so little as if I earned more then £10 my benefits could drop more than I earn. On one hand I see some logic in that but it is sickening when I hear about people working and claiming benefits and I have never asked for 1 penny from the government in all my adult life and I can't earn a few pound extra each week if I notify them.

    If you're a single person you can earn £5 per week. After that, your JSA is reduced £1 for £1
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