Loan Arrears

Loan Arrears Advice

Are you worried about missing a repayment?

If you are worried about missing a payment on your loan you are doing exactly the right thing by reading this section. Acting early, talking to others who can offer good advice and sticking to a new budget are all things that will help.

If possible, you should avoid missing a payment because it may affect your credit rating and cost more in the long run. If you cannot avoid missing a payment, you should call us, because we may be able to offer a solution that would help.

We understand from time to time, members may find themselves in financial difficulty. If you are having difficulty making repayments on your loan, please contact us on 074 9522323 and one of our credit control team would be happy to talk you through the options available to you.

Have you missed a payment?

We understand that life doesn’t always go as planned. If you’ve already missed a payment, you may have already received a call, letter, text or email from us. The most important thing is not to ignore the situation. The best thing you can do is to pay back the missed payments as soon as you can. This will help you get back on track, otherwise the situation may deteriorate, and your credit rating may be affected, which means it may be more difficult for you to get a loan in the future.

If you cannot clear your arrears, you should contact us as soon as possible to find out what can be done. We are here to help.

What happens if I don’t or can’t repay my loan as agreed?

If you don’t or can’t repay your loan per the original loan agreement this will affect your credit rating. We are legally required to submit information on our loans to the Central Credit Register (CCR) each month. Arrears on your loan may affect your ability to access credit from the credit union and other financial institutions.

The credit union recommends that you contact us at the earliest possible stage to advise us of any change in your personal/financial circumstances or any temporary financial difficulties you might be experiencing. We are here to help our members through difficult times. It is very important that you contact us and maintain contact with us, to discuss all possible repayment options to ensure your situation does not deteriorate. The credit union is flexible and is willing to work with you to help you through a difficult period.

Our preference is to work closely with members in difficulty to help resolve their arrears. Where the credit union cannot contact a member, whose loan is in arrears or where a member will not work with us to resolve their issue, the credit union has no other alternative than to take the necessary steps to recover the debt (i.e., legal action). This is unnecessary action that can easily be avoided when member co-operates with us.

I did go through a difficult period, but I want to get back to paying my loan. What do I do?

We are always happy to hear that our members are getting back on their feet. Please feel free to call us to discuss your options. We can help you find the best way forward for you. This may include reducing the weekly or monthly repayments to a level that you can afford.

I’m paying my loan back but there are arrears on my loan because I missed some payments. How do I clear these?

The simplest way of clearing down the arrears on your loan is to pay a little bit more every week. If your agreed weekly repayment is €30 then pay €35 if you can. The arrears will then reduce every week. Contact our Credit Control Team who will agree a repayment plan with you to reduce your arrears each week.

Can I apply for a loan from the credit union again if I have been in arrears?

Yes absolutely. You may apply for a loan, and if you have been a co-operating borrower, who experienced genuine financial difficulties but worked with us to resolve your arrears, this will be considered favourably on your loan application. It is also in a borrower’s interest to display a savings pattern, where possible.

MABS

MABS is a free, independent, confidential, and non- judgmental money advice and budgeting service for all members of the public.

MABS primarily works with people experiencing over-indebtedness. MABS money advisers work with clients who may have difficulties with a wide range of personal debts including personal loans, mortgages, credit card debt, catalogue debts, debts to legal moneylenders and hire purchases.

If you have problem debt in any area, including mortgage arrears, bank loans, overdrafts, utilities, or credit cards, talk to your lender first. If you can’t, talk to MABS.

Visit  www.mabs.ie or call the MABS Helpline 0818 07 2000.