Ever asked for a reduction in CU loan interest rate

Discussion in 'Credit Union issues' started by Finlandia, Feb 21, 2012.

  1. Finlandia

    Finlandia Frequent Poster

    Just wondering if anyone has ever approached their credit union and asked for a reduction in interest rate, i know many have approached their banks to reduct interest in credit cards payment etc.

    It would be interesting to see if any has and if they got a reduction.
  2. ivannomonet

    ivannomonet Frequent Poster

    I did ask, back in 2007, not because I needed to but simply because the credit union was charging 9.9% while banks were offering around 5% . I got a blunt No!
    Would not consider it at all. More or less told me to take my business elsewhere if I wasnt happy. To be fair, Those were and always have been its advertised rates so it was no surprise.
  3. Slim

    Slim Frequent Poster

    It is possible to have the interest reduced or ceased on your account if you are in some difficulty. This is very much the last resort and would/could happen just before your loan would be 'written off'. It is a matter for the Board of the CU.
  4. Elliesausage

    Elliesausage Registered User

    I asked last Oct for an interest rate reduction...got told that i was paying 9.6% as that was the rate agreed upon in 2008 when the loan was taken out- i'd signed and agreed to that rate so basically tough.
    Then i got a lecture from the cu manager about how there is a cost to borrowing money and i cant expect to have gotten the money for free and i am walking around with other members money in my pocket.
    The loan WAS in 2009 at the stage of not being paid AT ALL, guarantors were called in etc. legal action was being threatened
    By May 2010 i was in a much better financial position and began paying Monthly loan +an extra 30 a week towards arrears.
    I had proven that i was playing ball as had never missed a payment for 18 months- and was still told NO in a very rude manner might i add.
  5. allie12

    allie12 Frequent Poster

    I took a loan out in 2008/9 with an interest rate of 8.?%. This was my second loan and normally would pay it off within max 2 yrs of a 5 year loan. I just called the CU to check on the term left etc, and was told that as I had topped up the loan in May last year - I am now on an interest rate of 10.42% .......

    Obvioulsy not impressed- so have requested a call back from the manager!
  6. Slim

    Slim Frequent Poster

    Most, if not all, CU interest rates are variable so if you 'rescheduled' the loan last year, it would be made at the prevailing rate. It should be in the paperwork you signed at the time.