Credit Union on Self Managed DMP

James2419

Hi All,

I have started my journey on a self mamaged dmp, after getting in to the cycle of borrowing to cover borrowing and now cant keep up with payments.

3 of my loans are with a credit union, My Community Bank. I have seen some comments around how credit unions can be awkward to deal with in these situations. I have checked and all 3 are on my credit report.

Would it be best to treat these the same as other lenders, cancel all payments and wait it out for default to come through, then make arranged payments?

Appreciate any advice

fatbelly

I'd be inclined to give them a bit of priority, particularly if you are on a means tested benefit.

Write and explain what you are doing and how much you will be paying them

sourcrates

Credit unions can be tricky to deal with, especially if you don`t communicate effectively with them, but even when you do they can still not want to play ball, so I would be inclined to try and keep there payments up to date if you want to avoid a CCJ for each loan.

They do tend to secure the debt by legal action in a lot of cases we have seen on here, ask them what there policy is on defaulted debts, can`t hurt can it, of course if repaying the debts under a county court judgement presents no problems to you, then so much the better.

fatbelly

I'm aware MCB can issue quite large loans to customers who clearly will have difficulty repaying. And you have three loans. I don't see why they shouldn't be subject to an affordability complaint if that is relevant.

https://debtcamel.co.uk/refunds-large-high-cost-loans/


If it is quite impossible to pay the contractual amounts then make clear to them the overall picture, how much money you have available and therefore how much they will be getting.