Credit Union - Breach of Confidentiality?

Danniboo

Hi,

Mods if this is the wrong area, please move/delete.

I'll keep this as brief as possible. I have a credit union account and have taken out a good few loans over the years which have all been cleared. I haven't missed a payment in about 6 years. I'm told every time I apply I need a guarantor and that I can apply for a loan after I clear "this loan". However it doesn't make a difference whether I do or not, they still say they want a guarantor.

On several occasions both in person and over the phone they've asked me about a family members account (they're in arrears) etc and tried to contact them through me. I've been told on more than one occasion that this could affect the decision if I apply for a loan. I never gave my name as a contact for this account. I feel like this is the real reason they won't let me get a loan by myself.

Couple of things:

Are they in breach of confidentiality?

Are they entitled to discriminate against members due to the history of family members accounts?

I am considering writing a letter to the director, good or bad idea?

Any advice greatly appreciated.

FreudianSlippers

More suitable for Banking & Insurance & Pensions.

unclebill98

TheY should not be asking you about family members unless your directly linked to their accounts or borrowings.

In short, it is wrong.

Think about what you want from this before wasting your time writing a letter. Any action would have a stronger effect coming from those whose information you became aware of.

Danniboo

unclebill98 wrote: »

TheY should not be asking you about family members unless your directly linked to their accounts or borrowings.

In short, it is wrong.

Think about what you want from this before wasting your time writing a letter. Any action would have a stronger effect coming from those whose information you became aware of.

I want to be treated as a seperate entity to my family when it comes to my finances. I want any decisions made on my account be based solely on my history alone. I also want to know why they're refusing a loan without a guarantor even though they say they will consider it every time I clear a loan.

unclebill98

Well them that then.

As for the guarantor thing, they've considered it and decided against it for each loan application, unless you think otherwise?

Pablo Sanchez

When credit unions assess the suitability of a loan application they take a number of factors into account.

For example if you have a loan and a family member is guarentor, they need to look at the risk posed by both people, do you work in the same company as them, same industry etc. If the credit union has lots of members from the same company/trade/industry, they look at the overall risk profile. Eg if there are 100 members with loans who all work with the same local factory, and the factory closes, they need to consider they may have 100 loans in arrears.

If your the only one working in your family, they take this into account as you will not be in a position to get help from anyone else. If there are bad debts within the family they need to look at wether they wish to take on further risk from the same family unit.

..........That said..due to data protection laws they are not allowed to discuss the status of anothers account without consent/power of attourney.

drunkmonkey

Danniboo wrote: »

I haven't missed a payment in about 6 years.

Would it be right to assume you have missed payments in the past?
If so that's why the want someone to back you up. Family members being in default doesn't help either. They seem to be having trouble contacting family members who have defaulted and not replied to letters or calls that's why there looking for your assistance.

Art Teacher

If it is the case that the guarantor which you nominated is a credit union member in arrears then it means that you have to find a guarantor who is a member not in arrears. Your guarantor of your loan needs to be in -benefit.

Danniboo

Pablo Sanchez wrote: »

When credit unions assess the suitability of a loan application they take a number of factors into account.

For example if you have a loan and a family member is guarentor, they need to look at the risk posed by both people, do you work in the same company as them, same industry etc. If the credit union has lots of members from the same company/trade/industry, they look at the overall risk profile. Eg if there are 100 members with loans who all work with the same local factory, and the factory closes, they need to consider they may have 100 loans in arrears.

If your the only one working in your family, they take this into account as you will not be in a position to get help from anyone else. If there are bad debts within the family they need to look at wether they wish to take on further risk from the same family unit.

..........That said..due to data protection laws they are not allowed to discuss the status of anothers account without consent/power of attourney.

Don't work at the same location as family member, family member is not my guarantor. Don't recide at same address and haven't done for years. I've paid them back thousands over the years.

Think I will write the letter as they were never given permission to contact me about the account.

Danniboo

Art Teacher wrote: »

If it is the case that the guarantor which you nominated is a credit union member in arrears then it means that you have to find a guarantor who is a member not in arrears. Your guarantor of your loan needs to be in -benefit.

My guarantor is not in arrears?

Danniboo

drunkmonkey wrote: »

Would it be right to assume you have missed payments in the past?
If so that's why the want someone to back you up. Family members being in default doesn't help either. They seem to be having trouble contacting family members who have defaulted and not replied to letters or calls that's why there looking for your assistance.

The last time I missed a payment was 6 years ago.

Danniboo

unclebill98 wrote: »

Well them that then.

As for the guarantor thing, they've considered it and decided against it for each loan application, unless you think otherwise?

No they say they will consider it and then don't. Don't know what you mean by unless I think otherwise?

Art Teacher

Danniboo - it all sounds very unusual and irregular on the part of this credit union. I would make an appointment to speak with the director - avoid the letter for the moment.

Danniboo

Art Teacher wrote: »

Danniboo - it all sounds very unusual and irregular on the part of this credit union. I would make an appointment to speak with the director - avoid the letter for the moment.

Perhaps that's a better idea, i'll look into it

Art Teacher

Also, dont forget what the moderator advised here in this thread above - try your query in the banking and insurance forum - you will probably get better advice there that you can use in your meeting with the director.

Danniboo

Art Teacher wrote: »

Also, dont forget what the moderator advised here in this thread above - try your query in the banking and insurance forum - you will probably get better advice there that you can use in your meeting with the director.

This is banking and insurance isn't it?????

Art Teacher

Your're right - it must have got moved over from the Legal Discussion Forum. I hope you get lots of good advice here - Best of luck in your loan application!