Danielle24
Registered User
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- 209
Most people misunderstand that. Credit Unions and banks charge interest on the balance outstanding on the loan. The balance is higher than it would otherwise have been because he has not been paying it down as quickly. So he pays more interest. But there is no additional or penalty interest.and also paying interest on arrears.
He's recently returned and went in to the credit union to get a top up on his loan,
So he can't pay his original loan amount and now wants to top up? And you say the CU are screwing him over????
Hi Danielle
Well obviously they wrote to him agreeing the reduced amount. So he should just show them that letter.
Most people misunderstand that. Credit Unions and banks charge interest on the balance outstanding on the loan. The balance is higher than it would otherwise have been because he has not been paying it down as quickly. So he pays more interest. But there is no additional or penalty interest.
The fact that he reduced his repayments to €25 suggests that he does not have the capacity to repay any more?
Hi Brendan,
I'm not sure if they wrote to him, but if they did that would be great.
If they did not write to him, then he does not have a revised agreement.
I think that your overall approach of "credit union screwed my brother over..." is wrong.
He thought he had an agreement.
He may not have had.
That is a misunderstanding - this sort of thing happens.
He needs to sit down with the manager or committee and explain himself. This is a membership based organisation.
As he can pay more, he needs to clear his "arrears" as quickly as possible.
He needs to check his ICB record. They may well have registered that he is in arrears which means he won't get a loan or mortgage anywhere for at least 5 years.
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