Defaulting on Loans from UK Banks

dunedinblue · 06-10-2010 09:52PM #1

Hi, I just have a general query regarding loans from British banks. I am an Irish National living and working in the UK. I have currently taken a loan out with RBS so that I can go travelling for a year. I have deferred payments on this loan for a year as I plan to make the most of my time travelling.

I intend on paying this loan back be it from Ireland/Britain or Austrailia however if I default what will happen?? Will they start sending notices to my Irish address (as they have my passport details from when I opened my account). This is worse case scenario as I cannot foresee what I will be at in a years time.

My ideal scenario would be to return home to Ireland to work there but if this does not work out I suppose I have to keep the option of working in the UK again open. Will defaulting on this loan hinder me in Ireland or in the UK in any way or is there any way around avoiding a bad credit rating??

Has anybody ever encountered this situation before? If so your advice would be appreciated.

daithijjj · 07-10-2010 09:57AM

I dont know the intricacies surrouning legality but i will just tell you a short story.

I lived with another irish lad in england for a while. He left england and moved back owing an outstanding £1600 to HSBC. Correspondence was sent to his irish address and wasnt replied too. A few months passed and a knock at the door revealed people/s on behalf of HSBC to recover it. It was paid there and then (+fee). That was 8/9 years ago and he had left england more than a year before.

Personally, i would stay in contact with them and try to organise with them where you can pay a very small amount monthly that wont hinder you very much.

vanla sighs · 07-10-2010 10:45AM

Yes, they'll come looking for you. Even if you were on social welfare in Ireland you'll be able to make some type of repayments, even if the loan needs to be renegotiated. I'm just off the phone, literally, with my own bank here in Ireland and was able to renegotiate loans I had down to 50%. Simply couldn't have continued repaying them the agreed amount so before things got out of hand or they started contacting me, I contacted them. It was a very smooth transaction, very accommodating and understanding. At the end of the day, they'll still get every red cent they loaned me back.

Now I'm not saying all banks will be like that but if you are having difficulty repaying them then you get onto them and explain the situation. Otherwise they will come looking for you. Now if you contact them and they say no way Jose, then that's a different matter but I honestly don't see any bank saying that, they could but I doubt it very, very much.

Defaulting on Loans from UK Banks

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