Help with Credit Union *****Resolved*****

[MrJohnW]

Hi there,

 

I am helping my neighbour sort out his Finances, and while most of his creditors have been happy to help, we have an issue with a Credit Union.

 

He had a loan with them, and in attempting to restart payments to them, they have said its now been passed to an outside agency for collection and they will not deal with him or have contact with him to repay it(despite the fact it was passed on 4 months ago andhe has heard nothing). He had savings worth £300 with them, and they are refusing to release them to him, either as payment towards the loan, or just a cheque to him as he still has an active loan.

 

My Argument is that if they are now refusing to deal with the collection of the loan, they surely cannot hold his savings to ransom?

 

Thanks for the help.

[rebel11]

Hi MrJW

 

Write to the Credit Union, ask them to release the money to pay off the loan or in the alternative a payment to your friend. Tell them that you want a written Final Response so that you can lodge a complaint with the FOS, explain to the Credit Union that if you lodge a complaint with the FOS then they will have to pay for the FOS to look into the matter. Only communicate by letters, as the FOS will need to see the letters.

 

Hi there,

 

I am helping my neighbour sort out his Finances, and while most of his creditors have been happy to help, we have an issue with a Credit Union.

 

He had a loan with them, and in attempting to restart payments to them, they have said its now been passed to an outside agency for collection and they will not deal with him or have contact with him to repay it(despite the fact it was passed on 4 months ago andhe has heard nothing). He had savings worth £300 with them, and they are refusing to release them to him, either as payment towards the loan, or just a cheque to him as he still has an active loan.

 

My Argument is that if they are now refusing to deal with the collection of the loan, they surely cannot hold his savings to ransom?

 

Thanks for the help.

Edited April 8, 2014 by citizenB
restored quote link

[excreditunionuser]

A lot of people who are not good with money fall into the trap of thinking that the Credit Union is a good way to borrow. The truth of the matter is that ethical financial institutions use credit scoring to protect the consumer, as well as their own interests.

 

I had a substantial credit union loan with Pennine Community Credit Union. At one time they were taking £40 a week out of our tax credits to repay our loan even though I was on a low income and my job was pretty seasonal (gardener).

 

When my wife and I split up last January their attitude towards me changed pretty quickly. When after a month I was no longer able to afford to repay the same amount they referred my account to a debt collection agency. They agreed to take £5 per week but they didn't always turn up. In February this year the Credit Union issued court proceedings against me and now thanks to the courts I am paying the loan back at a rate Ii can afford, £20 per month for the next ten or so years. BE WARNED! Think carefully before borrowing off Credit Unions. They are very friendly when things are going their way but if your circumstances change they may become very hard to deal with.

[MrJohnW]

Hi there,

 

I have been swinging back and forth to the credit union on this, and have finally got them not only talk to him, but also to agree the correct amount of the debt.

 

The problem is they are now claiming they are adding costs from the DCA they hired(who have done nothing, no letters or phone calls or contact of any kind) of nearly £300. This is almost half the balance on the actual loan. My argument is that the DCA have done no work, the figures are ridiculous, and when I started contacting them it was before they sent it to a DCA.

 

Please help my neighbour!

 

Thanks

[rebel11]

Hi MrJohnW

 

I would write to them, ask them to put into writing regarding the DCA charges, tell them you want to forward that letter to the FOS with your own evidence. Note that this has to be done by letter. Lets see what they say.

[MrJohnW]

I threatened them with the FOS, and demanded a full breakdown of the costs involved in the DCA(who had still done nothing after a month). I also pointed out that every communication from them quoted different amounts, the sheer un-professionalism of their responses, and told them they would never see if penny if they tried to take it to court, as I had sought legal advice(Ok that one was a bit of bluff).

 

It worked, they dropped the "DCA fees"(which I always thought was a great big lie) and agreed to take £10 a month from my neighbour, I have this in writing from them by letter as well as e-mail. . He is very happy.

 

Thanks for the help.

[rebel11]

Well Done MrJohnW, Credit Unions shouldn't act unfairly.