10 year old debt blocking a loan application

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wezg wrote: »

I could if they offered a payment plan. Which they are unwilling to do.

They offered you a payment plan ten years ago, that did not work out - why would they offer another one?

ted1

DellyBelly wrote: »

580 isn't that much to pay back in fairness in one go. Why don't you get a loan from a friend pay it off if you can't aford it and then add another 600 euro onto what you wanted in the first place and pay that off in installments?

That’s a bit condescending, it’s much to some people , but it’s a lot to other people.

Also he hasn’t paid the bank yet , it’s not fair to ask a friend.

Water2626262

wezg wrote: »

I recently applied for a loan at my local credit union and got refused because of an unpaid overdraft I had from 10 years ago.

I was informed by my credit union that I had an outstanding debt of €580 with Bank of Ireland which would need to be sorted before I could proceed with the loan. I contacted bank of ireland and they informed me that it was an outstanding overdraft from 2009. I then remembered that I had had my account closed by the bank back then and moved to my current bank. When they closed my account they did not persue me for the debt, they did not offer me a payment plan they just closed my account.

I was on social welfare then and my payment went directly into the bank. I had no way of accessing my weekly payment for 2 weeks until I got my payment moved to my new bank. While on the phone to bank of Ireland they said that they had received 2 payments to the debt. It wasn't a payment to the debt it was my weekly payment which I had to live without.

My problem now is that I am told by BOI that I will have to pay this dept in full to have this removed from my credit history. I can't afford to pay it outright and my credit union have said that I cannot get a loan until I pay it off. They even stated that I should never of had the 10 previous loans I had with them that were all paid back in a timely manner and most were covered by shares.

My question is this:
How can this debt still be outstanding after 10 years?
After reading up on credit checks and ratings, this outstanding debt should have been removed years ago. The credit union were able to tell me that BOI had refreshed the record 3 months ago. Are they allowed to do this?
The debt that was outstanding was an unwanted overdraft that was never requested and became a nightmare as I couldn't get away from it. The constant fees made it impossible to pay off and live on my social welfare payment at the time. I was relieved when they finally closed my account as I could start fresh and requested that my new bank account have no such feature.

Your overdraft is probably long written off. You need to tell the credit union that you had very little income at the time and you changed bank. You’ve since paid off ten loans with them no problem so you need to hammer that home.

You should run your ccr report and see what exactly it says in relation to your overdraft. It should only appear on it five years after it was last “live”. If boi wrote off the account before 2014 it shouldn’t be on it.

The only other thing I can think of is maybe you’ve been late with the credit union or they don’t like your current request and they are just looking for a reason decline you?

Water2626262

Water2626262 wrote: »

Your overdraft is probably long written off. You need to tell the credit union that you had very little income at the time and you changed bank. You’ve since paid off ten loans with them no problem so you need to hammer that home.

You should run your ccr report and see what exactly it says in relation to your overdraft. It should only appear on it five years after it was last “live”. If boi wrote off the account before 2014 it shouldn’t be on it.

The only other thing I can think of is maybe you’ve been late with the credit union or they don’t like your current request and they are just looking for a reason decline you?

I might add that this issue has only arisen for you since the new central credit register came in (which includes overdrafts). Previously they would have used ICB

If you don’t know anything about it you need to read up on it and see your rights to remove stuff etc

careless sherpa

Water2626262 wrote: »

Your overdraft is probably long written off. You need to tell the credit union that you had very little income at the time and you changed bank. You’ve since paid off ten loans with them no problem so you need to hammer that home.

You should run your ccr report and see what exactly it says in relation to your overdraft. It should only appear on it five years after it was last “live”. If boi wrote off the account before 2014 it shouldn’t be on it.

The only other thing I can think of is maybe you’ve been late with the credit union or they don’t like your current request and they are just looking for a reason decline you?

What does 'live'mean in this context. Is it when the bank would have officially closed the account?

Water2626262

careless sherpa wrote: »

What does 'live'mean in this context. Is it when the bank would have officially closed the account?

Yeah when the agreement ended. If you pay off a loan it’s on your credit history for five years after the last repayment.

Same with write offs settlements etc. Up to five years after date of write off

careless sherpa

Water2626262 wrote: »

Yeah when the agreement ended. If you pay off a loan it’s on your credit history for five years after the last repayment.

Same with write offs settlements etc. Up to five years after date of write off

So if a debt was sold on would it be five years from when the debt was sold or from the end of repayments to whoever bought it. In other words would it still be live while some money is owed.

my3cents

careless sherpa wrote: »

So if a debt was sold on would it be five years from when the debt was sold or from the end of repayments to whoever bought it. In other words would it still be live while some money is owed.

Its from the last payment or admission that you owed the money.

afaik the bank could actually be in trouble for having out of date information on the central credit register. I don't think the same black mark can be set against you for more that 5 years?

From https://www.communitycu.ie/cuweb/wp-content/uploads/Central-Credit-Register-FAQs-Web.pdf

Credit performance information, such as outstanding balance and number of payments past due
will be held on the CCR for a period of five years from when it was first submitted.

Banks can only submit the details once they can't keep updating them so the OP needs to find when the bank submitted the details and if it was more the 5 years ago then make a complaint.

my3cents

Note also

Q 28: Can I apply to have my information amended?
A: Yes. You will be able to make an application to your lender and the Central Bank of Ireland to
amend information held on the Central Credit Register about you if you believe it is incorrect. You will have a right to:
- add an explanatory statement of 200 words or less, relating to any of your
information held on the CCR, and this will be included on your credit report
- have your information amended if you believe it is inaccurate, incomplete or out of date
- make a report to the CCR if you reasonably believe that someone has, is, or is about to impersonate you.

(My use of bold text and underling)

Bob24

wezg wrote: »

I could if they offered a payment plan. Which they are unwilling to do.

They don’t have to but let’s assume they did offer you a payment plan: then you would have monthly debt repayments to serve with BOI.

You then go back to your credit union to talk about that loan from them again and what do they say: you currently already have repayment commitments towards BOI, come back once you’re done with than loan and then we can discuss another one.

At the end of the day it doesn’t do anything for anyone.

Basically the way out is: you say you’d be able to cover a payment plan if BOI was offering one. Then just save that money each month and once the savings are enough go back to BOI and repay the full amount.

rd1izb7lvpuksx

my3cents wrote: »

Its from the last payment or admission that you owed the money.

afaik the bank could actually be in trouble for having out of date information on the central credit register. I don't think the same black mark can be set against you for more that 5 years?

From https://www.communitycu.ie/cuweb/wp-content/uploads/Central-Credit-Register-FAQs-Web.pdf



Banks can only submit the details once they can't keep updating them so the OP needs to find when the bank submitted the details and if it was more the 5 years ago then make a complaint.

Banks and other institutions not only can keep the CCR up-to-date, they're legally required to.



You should read the Section 8 of the Credit Reporting Act 2013 - information about the debt will be kept on the register for five years after it has been discharged.

Markcheese

Isn't there something about if you give a token payment, (or offer payment?) on the "out of date" debt, that it's back to active again...?
How much is the debt now? 500 quid with compound interest at overdraft rates after 10 years could be fairly saucy by this stage...(To you, to the bank its peanuts)

my3cents

Markcheese wrote: »

Isn't there something about if you give a token payment, (or offer payment?) on the "out of date" debt, that it's back to active again...?
How much is the debt now? 500 quid with compound interest at overdraft rates after 10 years could be fairly saucy by this stage...(To you, to the bank its peanuts)

I don't see how a bank can close an account then charge interest on the balance?

rd1izb7lvpuksx

my3cents wrote: »

I don't see how a bank can close an account then charge interest on the balance?

It depends on the contracts, but banks in general can suspend or close accounts in arrears without absolving the account holder of the debt. There's no reason in principle why interest wouldn't accrue.

rd1izb7lvpuksx

Markcheese wrote: »

Isn't there something about if you give a token payment, (or offer payment?) on the "out of date" debt, that it's back to active again...?
How much is the debt now? 500 quid with compound interest at overdraft rates after 10 years could be fairly saucy by this stage...(To you, to the bank its peanuts)

Until it's paid off, forgiven, or otherwise discharged, debt doesn't go "out of date" on the CCR.

GerardKeating

belfe wrote: »

After 6 years, you don't need to pay the debt

That's not quite correct, after 6 years, they cannot take you to court to force one to pay the debt, but one can still pay it if one wants.

Jim2007

belfe wrote: »

I agree that you should pay. However, I think that there is other approach.

After 6 years, you don't need to pay the debt:
https://www.citizensinformation.ie/en/money_and_tax/personal_finance/debt/glossary_of_debt_terms.html

I think that you can force the rating companies to delete your data because the debt is expired. This is only an opinion, all the links that I've found about this are from another countries and Irish legislation may be different.

Rubbish, it's an active debt and therefore not subject to the statute of limitations.

my3cents

Jim2007 wrote: »

Rubbish, it's an active debt and therefore not subject to the statute of limitations.

In court a valid defense is that the debt is statute barred provided the debt has not been acknowledged or no money paid off it for a period of 6 years.

Jim2007

Water2626262 wrote: »

Your overdraft is probably long written off.

A company or a bank writes off a loan for accounting purposes, it in no way impacts your liability to pay it nor their ability to sell or seek to enforce it.

Jim2007

my3cents wrote: »

In court a valid defense is that the debt is statute barred provided the debt has not been acknowledged or no money paid off it for a period of 6 years.

It's amazing how people only get half the story, it is only valid if you can show that the lender ignored the debt and most banks I have worked for have a system to flag up such events so they don't miss it. And in this case they updated the credit records plus the OP telephoned them.

my3cents

Jim2007 wrote: »

It's amazing how people only get half the story, it is only valid if you can show that the lender ignored the debt and most banks I have worked for have a system to flag up such events so they don't miss it. And in this case they updated the credit records plus the OP telephoned them.

No the lender can chase you and contact you every day for the six years and if you don't acknowledge the debt its statute barred. If the OP was stupid enough to acknowledge the debt AND there is a record of it then a defense of statute barred won't stand up.

Water2626262

It was ten years ago. People do stupid stuff all the time. It was only 500 euro, not a mortgage. You need to keep hassling the credit union. You claim you’ve ten loans on your record. If you paid them all as per the agreed terms then they are being very unreasonable. The whole purpose of the credit union is to give people access to credit. Ask for an appeal and tell them your circumstances back then.

Are you definitely sure you’ve no missed payments with the credit union? Is there something about the loan you want that they might not like? They might just be using this new record on ccr as a reason to decline you.

If you pay back the bank they’ll just throw it into some big generic account they offset against bad debts. They’ll probably never lend to you again anyway so no point reestablishing a relationship there.

Guy:Incognito

US2 wrote: »

Can afford to pay back the credit union because it's installments not lump sum.

Bank does or did give unwanted and Iunrequested overdrafts around that time, I had awful trouble getting rid of mine.

Some people so ignorant.

Even if they give an automatic overdraft, they dont withdraw the cash and send it to you. You dont actually have to overdraw your account.

It’s amazing how many people ask for credit, don’t pay it back and then get butthurt when they cant get more.

It happens so often!

Borrow what you can afford to pay back, and pay it back!!!

Markcheese

[Deleted User] wrote: »

It’s amazing how many people ask for credit, don’t pay it back and then get butthurt when they cant get more.

It happens so often!

Borrow what you can afford to pay back, and pay it back!!!

Which is fine and true, but the op is stuck for credit union finance now... And has 10 years of a good record with the credit union,
I've no idea of the ops circumstances with the bank and overdrafts 10 plus years ago..
(I do know I had an unasked for overdraft with tsb, which was very rarely used, until it was taken away, also unasked for),

gctest50

Water2626262 wrote: »

...

.... .It was only 500 euro, .

Pay it back if it was only 500 euro

Likeabossboss

Seems a bit strange that a bank want the debt paid in full and not allow a payment plan. Seems a bit iffy to me.

Offer half it and they should write if off.

gwalk

Likeabossboss wrote: »

Seems a bit strange that a bank want the debt paid in full and not allow a payment plan. Seems a bit iffy to me.

Offer half it and they should write if off.

they probably wouldve been open to a payment plan 10 years ago but OP moved his dole to a new account and ignored them

El Tarangu

Markcheese wrote: »

Which is fine and true, but the op is stuck for credit union finance now... And has 10 years of a good record with the credit union,

OP's good record with the credit union was based on an absence of information, if not an outright omission; they were lending to him/her based on their record of repaying loans (or at least the absence of record of not repaying loans).

It would be imprudent for them to lend to the OP now, now that they know he has a track record of leaving lenders high and dry.

Water2626262

El Tarangu wrote: »

OP's good record with the credit union was based on an absence of information, if not an outright omission; they were lending to him/her based on their record of repaying loans (or at least the absence of record of not repaying loans).

It would be imprudent for them to lend to the OP now, now that they know he has a track record of leaving lenders high and dry.

After ten loans? Believe it or not but people aren’t written off forever for past mistakes and that’s the way it should be. People can have health issues, be going through a tough time whatever. Thousands of people are advanced credit each day despite blips. If he was current in arrears on a loan or had multiple write offs then fair enough but a ten year old overdraft. It’s ancient history. Tons of people have revoked credit cards or settlements for less and they still get mortgages. If after ten years the debt wasn’t sold on to a collector then its unfair to punish him now.

At the end of the day credit institutions are businesses. They can’t lend to absolute bets otherwise they wouldn’t be in business. “Risk”

As I said previously maybe there is another reason why they don’t want to advance a new loan.