Hi. My sister-in-law recently approached my wife and I looking for a loan to help her out of a long-term mess. It's her first time asking her for help despite being in financial trouble for quite some time. I was reluctant tbh as she's clueless with money and I suspect won't learn a lesson from this. But, she has been good to us with her time and with our own kids over the years, and despite a lot of personal problems, immaturity, heavy drinking and reckless spending for the last 15 years, she seems to have turned a corner this year. Back in 2008 she got a CU loan for about 16k or so. She defaulted within 6 months and although she made scattered repayments the interest is now 10k and the loan itself 13k. We knew she was in financial trouble but we were thinking maybe 3 or 4k. I haven't seen any CU statements apart from one small printout from the CU from 2 weeks ago and it said 13k Balance, 10k interest and "home improvements". My wife on the other hand works in a bank and has gone through everything with a fine tooth comb. The CU haven't been pushy with her beyond sending out letters - at least this is what she told us in the last few weeks. Last week, we went with her to meet the CU credit controller. They said they sent out over 200 letters to her. We explained we were willing to help her out and could they give us a settlement amount we could work towards. They were initially reluctant to give us any figure but said the 13k was members money and would have to be repaid in full. There could be no write down on that figure. She did however tell us that she could definitely look at the interest and see what she could come up with once the 13k was paid. So, my wife and i discussed it and decided we'd help so we again went to meet the CU last week with her and we told them we could give them 6k within a day or two, but we needed a settlement figure before we'd commit to any more. That changed the tone of the conversation instantly and although they were very helpful all along, they were now a lot more interested and told us if we could pay the entire 13k off this side of Xmas they'd settle for approx 1k interest. So 14k out of 23k will settle it. We thought that was more than fair, so we gave them 6k the next day , and I am going to give them a further 7k this week. One other important piece of information is that last week when she told us of the debt we asked her to write to the ICB and get her own credit report. The loan wasn't registered and didn't appear. To be doubly sure I asked the credit union themselves at the last meeting and they too confirmed it wasn't registered. So unless the CU tell the ICB about this loan in the interim, it won't appear at all even when settled? The reason this is of interest to us is we were hoping by paying off this long standing debt it would save her 5 years in purgatory...specifically, that it would neither appear on the ICB nor the new central bank register due to go live in early 2018 some time. I looked at the Central bank website and it states very clearly that all loans that were on lenders books from last June on would be on the register. So, although it's quite clear what they are saying, I was wondering if anything could be done if I cleared off her debt entirely this week? It's probably too late, though the CU said they had not yet furnished the information to the CB as I made a point of asking. Mind you, they could have just been saying that too in case I changed my mind about paying them, but it wouldn't have affected our decision to pay down her debt one way one the other. The central bank register website says that car loans will not be included in the gathering up of this information. This was a car loan she borrowed for, but the loan statement says "home improvements". She doesn't remember what she told the CU first day on her application But would it be possible for the CU to change it from a home loan to car loan and thereby not have it appear on her record? Finally, as I've never seen a debt settlement in action on paper or otherwise, when I pay the money over will she get some kind of statement saying the loan is now finished or a letter or something obvious? Thanks all.