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  • FIRST POST
    • eefington
    • By eefington 19th Jun 17, 4:46 PM
    • 3Posts
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    eefington
    Credit union, irresponsible lending?
    • #1
    • 19th Jun 17, 4:46 PM
    Credit union, irresponsible lending? 19th Jun 17 at 4:46 PM
    Over the last two years Iíve had loans with a Credit Union via my workplace, they take payments directly from my wage and despite my poor credit and CCJís theyíve lent me over £3000.

    Itís got to the point where Iíve been struggling with the monthly repayments (around £340 out of my monthly wage of £1300) and after offering to reduce my payments by £20 a month, then £40 a month, theyíve agreed to lower it to £100 a month but for 6 months only. Iím already dreading it going back up, and it got me thinking about how theyíve lent to me. From what I gather, credit unions donít appear to fall into the same category as Payday loans etc, but Iím convinced theyíve lent to me irresponsibly, so I wondered whether there was a route of complaint for this type of thing? I absolutely want to make sure I repay them in full and Iím not fussed about a refund of interest or anything like that, it would just be to ensure the payments remained affordable. Any ideas?
Page 1
    • Gambler101
    • By Gambler101 19th Jun 17, 4:50 PM
    • 528 Posts
    • 1,292 Thanks
    Gambler101
    • #2
    • 19th Jun 17, 4:50 PM
    • #2
    • 19th Jun 17, 4:50 PM
    Did you apply knowing you couldnt afford the payements, sounds like irresponsible borrowing sorry to sound harsh.
    The instructions on the box said 'Requires Windows 7 or better'. So I installed LINUX
    • eefington
    • By eefington 19th Jun 17, 4:57 PM
    • 3 Posts
    • 0 Thanks
    eefington
    • #3
    • 19th Jun 17, 4:57 PM
    • #3
    • 19th Jun 17, 4:57 PM
    Did you apply knowing you couldnt afford the payements, sounds like irresponsible borrowing sorry to sound harsh.
    Originally posted by Gambler101
    At the time it was fine, it was a lot a month but I could just about afford it, but as time has gone on my bills etc have increased and it's left me without enough to really get by on.

    The complaint would more be in regards to their lack of willingness to help out long term, I've had to push hard to get them to reduce my payments for 6 months and they're adamant they have to go back up after that point, which just seems a bit daft to me.
    • Oakdene
    • By Oakdene 19th Jun 17, 5:00 PM
    • 1,389 Posts
    • 4,153 Thanks
    Oakdene
    • #4
    • 19th Jun 17, 5:00 PM
    • #4
    • 19th Jun 17, 5:00 PM
    At the time it was fine, it was a lot a month but I could just about afford it, but as time has gone on my bills etc have increased and it's left me without enough to really get by on.

    The complaint would more be in regards to their lack of willingness to help out long term, I've had to push hard to get them to reduce my payments for 6 months and they're adamant they have to go back up after that point, which just seems a bit daft to me.
    Originally posted by eefington
    Key phrase in bold there. Sadly the cost of living has increased
    • zx81
    • By zx81 19th Jun 17, 5:15 PM
    • 14,354 Posts
    • 15,111 Thanks
    zx81
    • #5
    • 19th Jun 17, 5:15 PM
    • #5
    • 19th Jun 17, 5:15 PM
    It seems they've done a lot to accommodate you that they didn't need to. 6 months of reduced payments is generous.

    There's no finger of irresponsibility pointing their way.
    • OneLife_OneShot
    • By OneLife_OneShot 19th Jun 17, 5:26 PM
    • 742 Posts
    • 533 Thanks
    OneLife_OneShot
    • #6
    • 19th Jun 17, 5:26 PM
    • #6
    • 19th Jun 17, 5:26 PM
    Fully agree zx81, the fact they are reducing your payments by £240 a month for 6 months says alot. Thats £1440 you do not need to pay until the end of the year.
    CC Debt - Paid £3041 / £3700 - Finishs in Sept 2017
    OD Debt - Paid £1400/£1400 - Finished

    "All truths are easy to understand once they are discovered, the point is to discover them."
    • DCFC79
    • By DCFC79 19th Jun 17, 5:26 PM
    • 30,399 Posts
    • 19,220 Thanks
    DCFC79
    • #7
    • 19th Jun 17, 5:26 PM
    • #7
    • 19th Jun 17, 5:26 PM
    They have done a lot to help you out.

    Cut back on your bills, eat cheap meals, buy reduced items and freeze them/make them last 2 meals etc.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • TheGardener
    • By TheGardener 19th Jun 17, 5:50 PM
    • 2,171 Posts
    • 2,056 Thanks
    TheGardener
    • #8
    • 19th Jun 17, 5:50 PM
    • #8
    • 19th Jun 17, 5:50 PM
    It might also be considered that a CU only has the funds to lend you because your colleagues (or whatever the 'common link' is in your CU) are saving with the CU. Although this is true of most organisations that lend money - the people whose money you have borrowed are closer to you than with the average payday lender or bank. You have borrowed their money - and the CU have a duty to get it back.

    You need to address your spending and get your finances under control rather than try and blame an organisation that has endeavoured to help you. If you believe you have no way to pay them and have cut your spending to the bone - then seek advice from the free debt charities such as StepChange.
    • Tarambor
    • By Tarambor 19th Jun 17, 7:25 PM
    • 1,734 Posts
    • 1,193 Thanks
    Tarambor
    • #9
    • 19th Jun 17, 7:25 PM
    • #9
    • 19th Jun 17, 7:25 PM
    The complaint would more be in regards to their lack of willingness to help out long term, I've had to push hard to get them to reduce my payments for 6 months and they're adamant they have to go back up after that point, which just seems a bit daft to me.
    Originally posted by eefington
    They're under absolutely no obligation to help you out at all. You applied for a loan with a set amount of repayments for a set amount of time, you signed that agreement and that is the only thing they have to continue with. It is your responsibility to keep up to the agreement, not theirs to change it to accommodate whatever you've decided to blow your money on this month instead of paying what you owe.
    • fwor
    • By fwor 19th Jun 17, 9:46 PM
    • 5,887 Posts
    • 3,931 Thanks
    fwor
    There's no finger of irresponsibility pointing their way.
    Originally posted by zx81
    Exactly so.

    Presumably you told them that you could afford the repayments, and they took you at your word.

    In case you aren't aware, a Credit Union is a collective financial co-operative, so anything that you owe and don't pay has to paid for by other members of the collective.

    If you don't pay what you agreed to pay, you are in effect taking money away from other people like yourself.
    • venison
    • By venison 19th Jun 17, 10:29 PM
    • 1,352 Posts
    • 1,441 Thanks
    venison
    I'm waiting for the day when we see a thread entitled "irresponsible borrowing", I'm not holding my breath !
    I am now a Board Guide on the Credit card board and the Loan board and Benefits board (But give me time to learn the ropes thanks).
    • PeacefulWaters
    • By PeacefulWaters 19th Jun 17, 11:17 PM
    • 7,285 Posts
    • 9,016 Thanks
    PeacefulWaters
    Get over to Debt free wannabe forum on the drop down list in the top right.

    Post a statement of affairs there. Ask for practical help in reducing your outgoings. Cut out treat food like cake, biscuits, fizzy drinks. Make a sandwich for work lunch. Drink tap water. Review TV and mobile phone contracts.

    Get an eBay account and sell off some junk.

    Good luck. You can only pay them what you've got. But you can take action to make more money available. Forget finger pointing. That's a two way street, don't you think?
    • AndyPix
    • By AndyPix 20th Jun 17, 9:37 AM
    • 3,010 Posts
    • 2,081 Thanks
    AndyPix
    of complaint for this type of thing?
    Originally posted by eefington

    By "this type of thing" you mean someone willing to lend to you despite your history of not paying back loans ??


    No, there is no route to complain
    Running with scissors since 1978
    • StopIt
    • By StopIt 20th Jun 17, 10:21 AM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    At the time it was fine, it was a lot a month but I could just about afford it, but as time has gone on my bills etc have increased and it's left me without enough to really get by on.

    The complaint would more be in regards to their lack of willingness to help out long term, I've had to push hard to get them to reduce my payments for 6 months and they're adamant they have to go back up after that point, which just seems a bit daft to me.
    Originally posted by eefington

    They don't have a crystal ball.


    If you tell them you have the means to pay it back, and circumstances change, that's alas not on them.


    And yes, you cannot have a change to the loan agreement long term without defaulting, which at the moment you're avoiding with the arrangement.


    If you cannot afford the loan payments after this arrangement, you must default and arrange to pay via a DMP. You can do this yourself or get help from a debt charity.


    Credit Unions do not exactly have a reputation for bad lending, so I don't think you'll get anywhere by complaining, especially as they're giving you 6 months at a very reduced rate anyway. You should use that time to save the money towards making the payments, or, if you're still in deficit, building an emergency fund to enter a DMP, especially if you have other debts.
    • 27cool
    • By 27cool 20th Jun 17, 11:33 AM
    • 249 Posts
    • 193 Thanks
    27cool
    It's not irresponsible lending. It's a darn cheek on your part even asking. As others have said. You need to address your overspending and stop expecting others to get you out of your mess,
    • Caz3121
    • By Caz3121 20th Jun 17, 12:09 PM
    • 10,865 Posts
    • 7,093 Thanks
    Caz3121
    but Iím convinced theyíve lent to me irresponsibly
    Originally posted by eefington
    At the time it was fine, it was a lot a month but I could just about afford it, but as time has gone on my bills etc have increased and it's left me without enough to really get by on.
    Originally posted by eefington
    So you borrowed money when "it was fine" so nothing irresponsible there...you said yourself you could afford it
    then the payments began to be a problem...I assume you did not borrow any more at this point as you knew you were struggling...if you did then surely that was irresponsible borrowing

    Might be worth having a look at the Debt Free Wanabee thread and look at posting a SOA where the very helpful people on that board can help with your budget, ideas for changing utility suppliers etc...as you have found, you cannot borrow your way out of debt so it is generally a case of upping income or reducing outgoings.
    • poppasmurf_bewdley
    • By poppasmurf_bewdley 20th Jun 17, 12:18 PM
    • 5,059 Posts
    • 5,201 Thanks
    poppasmurf_bewdley
    At the time it was fine,
    Originally posted by eefington
    Your words and your words only. So how could it have been irresponsible lending?

    If you think you have a case, you are a member of the Credit Union so use what advantages membership offers and make a complaint.

    But you will be wasting your time.
    "Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery." Mr Wilkins Micawber in David Copperfield by Charles Dickens.
    • PeacefulWaters
    • By PeacefulWaters 20th Jun 17, 1:49 PM
    • 7,285 Posts
    • 9,016 Thanks
    PeacefulWaters
    Credit Unions do not exactly have a reputation for bad lending.
    Originally posted by StopIt
    Why do so many go bust then?
    • StopIt
    • By StopIt 20th Jun 17, 3:12 PM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    Why do so many go bust then?
    Originally posted by PeacefulWaters

    Bad as in "Bad Faith", the sort of lending that is specialised by a certain other breed of lender.


    However, if they have a higher rate of failure than other financial institutions, then maybe they're just not good at the whole idea of risk management in lending.


    After all, irresponsible lending has its own punishment, which is not seeing their money back so often that they go out of business.
    • Westminster
    • By Westminster 20th Jun 17, 5:10 PM
    • 819 Posts
    • 501 Thanks
    Westminster
    Think of it the other way around.

    When you save with a bank, you are lending them money.

    If that bank subsequently goes bust, were you irresponsible for 'lending' them your savings and would you be happy to pay that bank some compensation?

    These things always should be 'fair and reasonable ' and it seems your credit union have been exactly that.

    Take the advice of others here and head over to the debt free wannabes section for plenty of useful & non-judgemental advice on the positive actions you can take to start to improve your position.

    Best of luck.
    Hi. Martin has asked me to tell you I'm a Board Guide on the following boards: Mortgages & Endowments, Mortgage-Free Wannabe, House Buying, Renting & Selling, Small Biz & Charities' MoneySaving and Charities.

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