RichieRich
Registered User
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- 52
Thanks for the further advice guys. It seems I should put pen to paper! Before I do, it's worth mentioning that the guy on the phone (teller) also told me that every credit union is different (even when I mentioned that I believed some transfer was permitted under the Credit Union Act).
My credit agreement (signed by me!) also states that I "hereby pledge all paid shares..bla bla bla, as security for replayment of this loan".
Does that mean I'm bunched, or should I put a request in writing as suggested above, quoting the sections of the act?
The other idea I had was to transfer the loan to another credit union with a better rate/terms (one near where I live, rather than the current one, near where I work). Would it be possible to do that I wonder?
Finally I wouldn't like to "sour" the good relationship I have with my credit union. Should I even be worried about this aspect of it or should I be more worried about saving on the interest paid and laying down the law to them?!
Thanks again for any and all advice!
These shares are pledged as security against that loan and should be used if required by the member to reduce their indebtedness. Transferring the shares reduces the risk to the credit union but the boards are generally not qualified to understand such concepts.
I sent a letter to my credit unions credit committee detailing the change in circumstances Ive had. I needed to withdraw shares and minimise loan repayments to as low as they could go and I asked to use shares if they needed to.
Got call today. Withdrawl approved, They also approved transferring some shares off my loan and reduced payments to less than half of what I was paying.
(Although this basically included a new loan over 5 years.)
Thanks for the further advice guys. It seems I should put pen to paper! Before I do, it's worth mentioning that the guy on the phone (teller) also told me that every credit union is different (even when I mentioned that I believed some transfer was permitted under the Credit Union Act).....
The other idea I had was to transfer the loan to another credit union with a better rate/terms (one near where I live, rather than the current one, near where I work). Would it be possible to do that I wonder?RichieRich
You should write to the Board and outline the particular circumstances you find yourself in. Holding a quarter of the loan is standard practice so they should let you reduce your share balance to this level. You can only get a loan from your other CU if (a) you are a member and (b) have a track record of saving or borrowing and (c) you may not get as much as you need to pay off the other loan.
If you have established a good record over time with your existing CU, then they may let you reduce the share balance. Persistence pays off and CU Boards do not like hassle. Slim
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