Credit union, irresponsible lending?

eefington · 19 June 2017 at 4:46PM

Over the last two years I’ve had loans with a Credit Union via my workplace, they take payments directly from my wage and despite my poor credit and CCJ’s they’ve lent me over £3000.

It’s got to the point where I’ve 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, they’ve agreed to lower it to £100 a month but for 6 months only. I’m already dreading it going back up, and it got me thinking about how they’ve lent to me. From what I gather, credit unions don’t appear to fall into the same category as Payday loans etc, but I’m convinced they’ve 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 I’m not fussed about a refund of interest or anything like that, it would just be to ensure the payments remained affordable. Any ideas?

Gambler101 · 19 June 2017 at 4:50PM

Did you apply knowing you couldnt afford the payements, sounds like irresponsible borrowing sorry to sound harsh.

eefington · 19 June 2017 at 4:57PM

Gambler101 wrote: »

Did you apply knowing you couldnt afford the payements, sounds like irresponsible borrowing sorry to sound harsh.

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 · 19 June 2017 at 5:00PM

eefington wrote: »

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.

Key phrase in bold there. Sadly the cost of living has increased

[Deleted User] · 19 June 2017 at 5:15PM

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 · 19 June 2017 at 5:26PM

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.

DCFC79 · 19 June 2017 at 5:26PM

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.

TheGardener · 19 June 2017 at 5:50PM

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.

System · 19 June 2017 at 7:25PM

eefington wrote: »

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.

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 · 19 June 2017 at 9:46PM

Deleted_User wrote: »

There's no finger of irresponsibility pointing their way.

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.

[Deleted User] · 19 June 2017 at 10:29PM

I'm waiting for the day when we see a thread entitled "irresponsible borrowing", I'm not holding my breath !

Credit union, irresponsible lending?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free