Unexpected letter from Ulsterbank!

Discussion in 'Personal Insolvency, bankruptcy, etc' started by Gardin, 15 Mar 2019 at 5:46 PM.

  1. Gardin

    Gardin New Member

    Hi all,

    I have a loan with Ulsterbank for circa €11,000, down from 25k. It was taken out when I was a student and paying fees - then the recession happened. Long story short, we agreed a €300 monthly repayment interest free and it’s been like this now for several years. I haven’t missed any of these payments. The loan was orgininally taken out about 11 years ago, but some of those years were interest only, etc.

    Ulsterbank just wrote to me asking to contact them to discuss ‘a mutual agreement to bring this to a close’ as the loan has been in their recoveries department for 11 years now. They note I’ve been making my repayments but point out it will still be a number of years before loan is repaid. They want to start a ‘discussion’

    Haven’t heard from them for several years now so I’m surprised to hear from them now. Any ideas?
  2. vandriver

    vandriver Frequent Poster

    They want to close it,so offer them a very small settlement figure.
  3. LS400

    LS400 Frequent Poster

    Or, a more mature approach might be to increase your repayments. The recession was after all a good while ago for most people.

    Offer them a small amount!! Flippen eck, What ever happened to "paying what you owe" mentality??
  4. Jim2007

    Jim2007 Frequent Poster

    And you would know this because.... It's an 11k balance, far more likely it is a final attempt to collect before it is factored.
  5. Brendan Burgess

    Brendan Burgess Founder

    Hi Gardin
    They are probably going to sell it to a vulture fund. The fund will probably pay about 30% for it. (This is a wild guess on my part.)

    Fair play to you for keeping up the €300 a month over the years. You owe €11k. At €300 per month, that is only 3 years to go.

    Are you in a position to offer them €3,000? Can you borrow €3,000 from a friend or from a credit union? If they say, not and agree to settle for €5,000 could you raise that?

    Your credit record would start cleaning up as well by doing so which would help you get a mortgage.

    You could seek a Debt Settlement Arrangement and end up owing nothing. I reckon €5,000 is a fair compromise between all the different issues including the moral obligation pointed out by LS 400.