Credit union loan - from 2010 - LBA

[carphunter]

Hi, Have a credit union loan from 2010 I was working but fell into bad health and could not meet the payments. Very little contact with the Credit union I owed the money too. in 2011 I owed £3580.00 - I stopped paying then back in 2018 have been making small token payments - £5 per month as I live on welfare payments.

Recently the CU have a new Credit Controller who has requested that I make more realistic payments - I told them my financial situation was worse than ever following the pandemic. I get very little money

At this point I was undergoing treatment for meningiomas, and the rest of it - this new Controller demanded I fill in a Income Expenditure form - I explained I could not due to my fragile physical and mental state of mind. They sent me a from I was expected to download print and fill in. Told them I could not do it due to disability illness - they told me to get someone to do it. Sent me 3 letters charged me £12 for each.

I was in no state to do this had no one to help me and basically that was it - then got more threats told them I could not complete a complex form as explained.

So got a LBA from a firm of solicitors. Responded I did not get any statements about the debt for years, I did not even know how much I owed. I disputed the amount they stated as they had took my shares of £1100 pounds in 2012.

It turns out they want £2159.00 .which is the outstanding loan - plus a admin fee (solicitor ?) - 291.00 and 36.00 for the letters they wrote me.

I had no idea about the charges - which I deem excessive so I told them to take me to court .... the original agreement they sent me dated 2010 states - I would pay all charges etc etc but that was 13 years ago !

Is their any legal defence I can persue to help me in anyway.

I am upset that they seem to have discriminated against me as well...

Im upset about the loan as it is a CU but now not so upset after the solicitor getting involved as I had a token payment scheme going with them. Only when this new staff member took over did this all start. Hope she doesnt get ill anytime soon hey !

How much interest would they be able to claim - never got a default notice off them,

I would appreciate any advice please - dont want to do a DRO really that would be last resort. and more stress added to my ailing health ...

Thank you

[echat11]

Hi Carphunter

Welcome to LB

Try not to worry.

Have you contacted CAB? I think you will need support on this.

https://www.citizensadvice.org.uk/debt-and-money/

[carphunter]

Thank-you - No .. the area i live in is rural .. there is no help or advice locally ... in all manner of things not much round here.

[echat11]

You could fill in an income and expenditure form, take into account the cost of living, i.e. energy, food etc. Give yourself a 'buffer', so if things increase as energy will this winter you don't commit more then you can afford. This is a non priority debt. A Court will only ask you to pay what you can afford, so if that's £1 a month, so be it.

https://nedcab.cabmoney.org.uk/

https://www.citizensadvice.org.uk/de...itor---letter/

You could consider requesting documents from them i.e. CCA agreement, proving it's a regulated agreement.

You can dispute the fees with the Creditor.