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Settling an Unsecured Loan when Unemployed

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  • 19-09-2012 1:59pm
    #1
    Jayo2011
    Registered Users Posts: 63 ✭✭


    Hi, not sure f this has been covered or not but here goes:

    I lost my job 3 years ago (2009)and have been unable to secure employment since then. My problem is this:

    I received an unsecured private loan from BOI in 2007. While employed I missed no payments. I lost my job due to illness and my payment protection (which the bank sold me) has up till now refused to cover me.

    After becoming unemployed I struggled to meet my repayments and asked the bank to restructure my loan until I regained employment (which they did). I missed no repayments. But the government made repeated cut backs on my Social Welfare Benefit which then made it physically impossible to meet these repayments. I went to the bank - explained my situation and informed them that I would no longer be able to make regular repayments. I made irregular repayments instead.

    All of a sudden the bank shuts all my accounts and am informed that my loan has been passed on to a debt collecting agency. Long story short, I am still disputing the debt as I am awaiting the result of an equality rights tribunal to determine if the payment protection insurance will cover me and I have refused to make any payments until this happens (why should I if payment protection should cover the entire loan).

    A third debt collection agency is now involved as the previous two gave up. I contacted them today and offered them a one off settlement of €700 euro on the remaining €3500 loan. They point blank refused. What I am wondering is what is the minimum repayment a court can force me to make. I am told its €2 per month. Is this true?

    If it is I wish to contact the bank directly with this argument:
    I am currently late 30s, unemployed and under the current economic climate unlikely to secure employment in the foreseeable future (I have been genuinely looking for the past 3 years and am not a dole sponger).
    €2 x 12 = €24 per year repayments
    at this rate it would take almost 30 years to get my offer of €700 lump sum settlement.

    Take it that I would be in my 60s then (if I live that long) should it not be in the banks favour to accept my offer? Theoretically this is not debt forgiveness - its a settlement offer on a debt of €3500.

    Maybe my minimum repayment that a court can impose is too low. Can somebody elaborate or offer further advice please

    Thank You


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