Is an unpaid CU loan a permanent blot on your copybook?

Hammer89

Here's the story: someone close to me wasn't in this morning when the postman called with a letter. She mentioned she was being contacted by the Credit Union about an outstanding student loan and hadn't bothered to get in touch because her finances are all over the place.

I suggested that the letter might've been a summons of some description (would this be right, if the postman didn't post it?) and I mentioned, if it is, she'd be set to attend court.

She only owes something like €1,300 and she's upset with herself over the notion that she might never, ever, ever get a loan again because of such a small amount in the grand scheme of things.

I'd like to cheer her up but I'm not going to bullsh*t the girl and tell her something which isn't true. So is it true? Is her credit rating permanently f*cked for mortgages and whatnot in the future?

Cheers.

thattequilagirl

When she goes for a mortgage she'll need to have cleared that debt, be in permanent employment and be able to show 12 months of consistent saving. What she pays in rent plus her savings each month will be taken as her repayment capacity.

Stheno

thattequilagirl wrote: »

When she goes for a mortgage she'll need to have cleared that debt, be in permanent employment and be able to show 12 months of consistent saving. What she pays in rent plus her savings each month will be taken as her repayment capacity.

If they are a member of the Credit Bureau it will be on her record for five years everytime someone does a credit check.

That's five years after it is paid off.

Ruu

She can meet with the credit union to make arrangements and stop it going to the credit bureau.

Maximus Alexander

"Someone close to me". Uh huh. Pay your debts OP. :pac:

ancapailldorcha

Thread moved to Banking, Insurance & Pensions. Please read their charter before posting.

Alf Stewart.

Hammer89 wrote: »

Here's the story: someone close to me wasn't in this morning when the postman called with a letter. She mentioned she was being contacted by the Credit Union about an outstanding student loan and hadn't bothered to get in touch because her finances are all over the place.

I suggested that the letter might've been a summons of some description (would this be right, if the postman didn't post it?) and I mentioned, if it is, she'd be set to attend court.

She only owes something like €1,300 and she's upset with herself over the notion that she might never, ever, ever get a loan again because of such a small amount in the grand scheme of things.

I'd like to cheer her up but I'm not going to bullsh*t the girl and tell her something which isn't true. So is it true? Is her credit rating permanently f*cked for mortgages and whatnot in the future?

Cheers.

I guess a credit union loan default is the same as any other, is a credit judgement lodged against your name.

Sad thing is, these days, a bloke who finds himself in genuine difficulty, (job losses etc) and can't pay back a reasonably small loan of credit facility gets locked out of the credit facilities market for (I believe) 5-6 years.

Where as a multi millionaire business man who decides he just can't be bothered to pay back what he owes is up and running again in a year due to bankruptcy laws.

Talk to the credit union, try and reach aj agreement before it gets too messy.

Walter H Price

It is a bad judgement against your name - if she agrees to pay it off then once it has been paid off 5 years it wont show up on a credit rating but until then yes it would definitely affect chances at getting another loan/CC/overdraft etc.

RedXIV

The credit union definitely has some sway over this, I was incorrectly tarnished with a "blot" on my credit report and contacted my Credit union and they were able to get it removed within a week.

source

RedXIV wrote: »

The credit union definitely has some sway over this, I was incorrectly tarnished with a "blot" on my credit report and contacted my Credit union and they were able to get it removed within a week.

Yes but the difference between you and the op is you say you were "incorrectly tarnished". The op states there is an outstanding loan.

Any financial institution can have an ICB record changed if they have mistakingly reported someone as being in arrears.

If someone is genuinely in arrears then the loan will stay on their record for 5 years after the loan is paid off in full. There is no way to change this.

OPs friend/family member can get a copy of their ICB report from the ICB website. That will tell them their exact position.

CarrickMcJoe

Credit Unions are set up in communities for the members. They save money and that money is loaned out to other members.
By not bothering to make an effort to repay back the loan, your friend has taken money from her neighbours.
Talk to the CU, and organize to pay something back each week, she will need them again in the future.