Loan Arrears FAQs
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.
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.
Where you are a ‘Small Enterprise,’ that is an enterprise which employs fewer than 50 persons and which has an annual turnover and annual balance sheet total which does not exceed €10 million; and you are in financial difficulty, please be aware of the following:
- the Credit Union should include a statement highlighting the importance of the borrower engaging with the Credit Union to address their financial difficulties;
- a description of the Credit Union’s procedures for dealing with borrowers in financial difficulties, including relevant timelines;
- an explanation that the Credit Union may offer the borrower an alternative arrangement subject to the borrower meeting the Credit Union’s alternative arrangement assessment criteria and to an individual assessment of the borrower’s situation;
- the criteria which may apply to the borrower’s financial difficulties case to determine whether an alternative arrangement is suitable to resolve those financial difficulties;
- a statement emphasising that it is in the borrower’s interest to engage with the Credit Union about arrears or financial difficulties;
- an explanation of the meaning of not co-operating under these Regulations and the implications for the borrower of not co-operating, including (i) the impact on the Credit Union’s consideration of an alternative arrangement, (ii) the impact of such a classification on the Credit Union’s consideration of it exercising any existing legal or contractual rights to enforce security, and (iii) where security is realised, that the borrower will remain liable for any outstanding debt;
- an explanation that the Credit Union may be entitled to impose additional fees or charges on borrowers in financial difficulties in accordance with the terms and conditions of the credit facility agreement;
- a list of the information which the Credit Union may request from the borrower when assessing the borrower’s case;
- a statement that the financial difficulties may impact on the borrower’s credit rating;
- a link to these Regulations and a brief summary of the purpose of these Regulations;
- an explanation that the data relating to the borrower’s arrears may be shared with a relevant credit reference agency or credit register, where permitted by contract or required by law;
- confirmation that where a borrower enters financial difficulties, the Credit Union will
- appoint a designated contact point, and
- inform the borrower of the relevant contact details of the designated contact point;
- a statement advising borrowers that they may employ third party advisers who may accompany the borrower during discussions with the Credit Union whether these discussions are face to face or not;
- an explanation of the Credit Union’s internal appeals process in respect of a Credit Union’s decision on whether to grant an alternative arrangement and the timeframes involved;
- the borrower’s right to make a complaint and the complaints procedure.