Will the credit union take a partial settlement.

spark2012

I have a loan with the credit union and was wondering has others every got a particial settlement from the credit union.
my family are helping me out with my debts but it is short of what I would owe and I am trying to clear all my creditors

has others been ever given this option ??
thanks

unclebill98

Unlike banks which would not cu are mostly independently run so it would depend on your cu.

It would also be done on a case by case basis.

badgerbroc11

I've never heard of any credit union doing it and under the rules of the credit union all members are to be treated equally, which would rule this out. I would suggest that you contact youre Credit Union and explain youre situation. Most cu's try to be as flexible as possible.

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badgerbroc11 wrote: »

I've never heard of any credit union doing it and under the rules of the credit union all members are to be treated equally, which would rule this out. I would suggest that you contact youre Credit Union and explain youre situation. Most cu's try to be as flexible as possible.

my cu puts a lien on peoples houses if they persist in not paying.

chris85

Novalee Quaint Woman wrote: »

my cu puts a lien on peoples houses if they persist in not paying.

Heard a lot of this happening. Credit Unions are chasing people tooth and nail for debts. They end up very far down the legal channels to recover this debts. They do this more often than the banks which dont go to court as often due to political pressue, regulation and so on. Many reasons.

OP, they may consider settlement but it may be more than likely that they will not so have a plan in place for this. They may seek part payment to clear arrears but they would consider getting the full balance back over a longer period better for them.

badgerbroc11

It is a fact that credit unions obtain far more judgements than the banks, however two points should be bourne in mind.

1. Banks look for security of some description on loans which the can call on should the loan go into default;
2. Credit Unions provide services to a demographic of people who the bank would never give a loan to which are obviously going to be higher risk.

A lien can only be put on a house (judgement mortgage) by the courts. The courts will only do this where the financial institution prove that the debtor have failed to cooperate.

chris85

badgerbroc11 wrote: »

It is a fact that credit unions obtain far more judgements than the banks, however two points should be bourne in mind.

1. Banks look for security of some description on loans which the can call on should the loan go into default;
2. Credit Unions provide services to a demographic of people who the bank would never give a loan to which are obviously going to be higher risk.

A lien can only be put on a house (judgement mortgage) by the courts. The courts will only do this where the financial institution prove that the debtor have failed to cooperate.

Judgement mortgage lot easier to get then that. The debtor more has to prove they have cooperated. They must defend the judgement mortgage, if they don't its given by default.

The fact they go for judgments more leans towards the CU seeking long term solutions and would be less willing to consider partial settlements. They would rather full debt paid even if takes much longer. Thats my experience anyways.

The banks will have a policy to consider a settlement. The CU may not even entertain it at all.

unclebill98

badgerbroc11 wrote: »

1. Banks look for security of some description on loans which the can call on should the loan go into default;

Can you clarify this?

Unless it's a student loan with a gaurantor or a mortgage, personal loans are unsecured. Lien on loans are generally business type arrangements in banks.