defaulted loan payments

daisy38

So I decided to take a year away from work and thought I have 1000 euros of an overdraft. This was my own major mistake as it was only 500. This meant that I thought I had enough to cover five payments of 200 euro from my 13,000 euro loan with AIB but instead I missed 3. When I learned of this in April I called them and they said as long as I put money in my current account I would be fine. I put in 600 euros but last week found out that they cancelled my current account.
I've tried calling them put have been passed along to a few people now. They tell me I have a new "bad debt" manager in Dublin but don't have details for him. Ideally a freeze or reduction on my loan repayments until I come back in August would be great. At this point I have spent about 150 dollars on phone calls to them.

Does anyone have any advice?

Thanks in advance

chris85

daisy38 wrote: »

So I decided to take a year away from work and thought I have 1000 euros of an overdraft. This was my own major mistake as it was only 500. This meant that I thought I had enough to cover five payments of 200 euro from my 13,000 euro loan with AIB but instead I missed 3. When I learned of this in April I called them and they said as long as I put money in my current account I would be fine. I put in 600 euros but last week found out that they cancelled my current account.
I've tried calling them put have been passed along to a few people now. They tell me I have a new "bad debt" manager in Dublin but don't have details for him. Ideally a freeze or reduction on my loan repayments until I come back in August would be great. At this point I have spent about 150 dollars on phone calls to them.

Does anyone have any advice?

Thanks in advance

A few payments doesnt get the account passed onto the bad debt dept. it takes missed payments and no response to their attempts to contact you as well as a total lack of effort. They will request the full balance to be paid immediately and this is part of terms and conditions but an arrangment can be entered into. They will certainly not freeze the account until you get back.

I cant seem them accepting lower than the contractual payments especially seeing as it was your own decision to take the year out and go away and not service your loan effectively.

To be honest i dont think the bank should have to lower payments (they probably wont anyways) due to you wanting to go away for a year. They will work with people who are in financial hardship but this is of your own making.

When you went away you should have ensured your financial commitments were met and have no sympathy tbh.

gogo

daisy38 wrote: »

Ideally a freeze or reduction on my loan repayments until I come back in August would be great. At this point I have spent about 150 dollars on phone calls to them.

Does anyone have any advice?

Thanks in advance

Ideally we would all love a freeze or reduction on our loans when we go on holiday, but thats not going to happen.

This dosent really add up to be honest, are you sure you missed just three payments and that you contacted them? Were you meant to lodge the 600 into your loan account, not your current account. This would make more sense. Are you using said current account while you are abroad? What happened to the 600? If they closed your current account they would have lodged the 600 into the loan, which means it would no longer be behind, which seems a bit drastic to close the current account, Unless theyre was no correspondancce from you or my guess is that they are only threatening to close it, to get you to contact them.

Either way, you need to ring again, ask to speak to a lending officer and ask that for person for a name, number and email for the person who looks after your account, be sure to get a name.
Ask would it be ok to correspond my email as you can no longer afford to call.
You need to find out where that 600euro is as it will bring your loan up to date, but you will need to make arrangements to pay the next monthly installments as well, or your credit rating will be shot when you come back.

daisy38

Hi Again,

Yes I did not contact them for 3 months so you're correct for that time period there was no effort on my part. This was simply due to the fact that I hadn't looked at my internet banking.

Yes I did just miss 3 payments and yes customer service have confirmed that my account has been cancelled and 157 was put on my loan, so not enough to bring it to a happy place. As I said I was over my overdraft for 3 months so they took the rest in payment and fees.

I will call them again and I'm sure again, but no they won't correspond through email. I've sent 9 and got standard responses to call ... thank you gogo for this advice though. I am well aware my credit rating is shot. This is not a major concern for me right now. Only getting someone to help me in AIB make a new plan or at least inform me of the plan they want me to follow. Yes I should have put the money straight on the loan but I didn't even think of this. I just thought If I got some money in the account it would be ok.

I did not seek, nor do I wish for sympathy. Only advice. Chris your only advice in this post was for me to travel back in time a year and make sure my financial affairs were in order. I have no idea why you would waste your time in order to take a little pop at me but I must have annoyed you in some way with my post and I apologise.

gogo

Ok, forgot about you using your overdraft to fund this. You still need to ring again and if they keep passing you around, make a fuss, tell them you are doing your best to resolve this and keep getting passed from billy to jack. If needs be ask for a manager or ask to lodge an official complaint, which they have to resolve, again tell them you need a name, number and email. As far as they are concerned now you a bad debt, and not dealt with in branch and to be fair they are right, but they still have to give you contact details of someone who can help.

When you do speak to the bad debt guy, he will more than likely agree to let you pay a reduced payment. This will have to be done manually as you now have no account, so you will need someone to dothis on your behalf until you get home. You need to get this sorted before it goes legal, which will happen if you dont manage to get through to this guy(aware this isn't your fault, hence the fuss making above).

I know you dont seem to mind the bad credit rating, but will you mind it in seven years time when you still have it, it will be harder to get a new bank account, loan, credit cards,mortgage etc, what do you do when you get a job, and they cant pay you because you have no bank account, and the fact that you will probably be asked why you dont have one?

Good Luck.

chris85

its a discussion forum, i express my opinion as is normal here. the hope they will freeze the account or reduce payments is the bad thing. The bank will not take the fall for your ill financial planning and rightly so. I have been travelling and had loans on the go but i kept a very close eye on the account and ensured all payments met. Its really easy to be honest.

Going forward i would suggest write a letter and put forward a detailed budget and your offer. I would suggest your offer be at least the normal contractual payments and a little extra to meet arrears. if any less than contractual payments then show as much documentation to show you can only afford so much. I genuinely cant see them going below the contractual payments due to your circumstances being of your own making. Its a completely different story if someone has fallen on hard times and the bank may reduce their payments.