What happens if I don’t or can’t repay my loan as agreed?

If you don’t or can’t repay your loan per the original loan agreement this will affect your credit rating. All credit union loans are registered with the Irish Credit Bureau. From the 30th June 2017 we are required to submit information on our loans to the Central Credit Register, owned and operated by the Central Bank of Ireland (see section on the Central Credit Register). Arrears on your loan will affect your future ability to access credit with the credit union and all other financial institutions.

The credit union recommends that you make contact with us at the earliest possible stage to advise us of any changes in your circumstances or any temporary difficulties you might be experiencing. The credit union is flexible and is willing to work with you to help you through a difficult period. It is very important that you make contact with us to discuss your options and to keep us informed.

Our preference is to work closely with members in difficulty to resolve arrears. Where the credit union cannot make contact with a member whose loan is in arrears or where the member will not work with us to resolve the issue the credit union will use our resources to recover the funds lent.

I did go through a difficult period but I want to get back to paying my loan. What do I do?

We are always happy to hear that our members are getting back on their feet. Please feel free to call us to arrange an appointment to discuss your options. We can provide advice on the best way forward for you and repayment options. This may include restructuring the loan to reduce the weekly or monthly repayments to a level that you can afford.

I’m paying my loan back but there are arrears on my loan because I missed some payments. How do I clear these?

The simplest way of clearing down the arrears on your loan is to pay a little bit more every week. If your agreed weekly repayment is €30 then pay €35 if you can. The arrears will reduce every week.

I was unemployed and haven’t paid my loan in a few months. If I return to repaying my loan will I be able to borrow from the credit union again in the future?

Yes absolutely. There is no reason why you can’t return to borrowing in the future if you can demonstrate that you have the ability to repay your loan. The first step you must take is to repair your credit rating with the credit union. You can do this by repaying your current loan, in full. In addition try to save a little to your shares each week or month. This will strengthen your position considerably when you apply for a loan again.