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Ask Buachaill Your Own Question
Buachaill
Buachaill, Lawyer
Category: Republic of Ireland Law
Satisfied Customers: 10174
Experience:  Barrister 17 years experience
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I need advice on a loan issue. I have a loan from 2011 with

Customer Question

Hi, I need advice on a loan issue. I have a loan from 2011 with a bank with a balance of 10K. There has been no payments on this for a number of years and the bank secured a judgement. I want to offer a settlement figure of 3,000 to be paid now to get this off my back. Do you think there is a chance they will take a settlement?
Submitted: 5 months ago.
Category: Republic of Ireland Law
Customer: replied 5 months ago.
Also how long would the bank usually take to give an answer - it's currently with a solicitor on their behalf
Expert:  Buachaill replied 5 months ago.

1. Most banks are happy to receive money - any money - which a debtor can give them. However, I would be surprised if the bank accepted your initial offer of 3k even if it is the most you can offer. I expect the bank to up the ante and to seek a little more. This is because they can also seek an instalment order against any earnings you might have. So, as their judgment lasts for six years, they will hope that your circumstances improve before they seek to settle with you. The loan is quite recent. So, when the bank was advancing the monies, you must have had income. Accordingly, the bank will not settle with you so soon after the monies were handed over.

Expert:  Buachaill replied 5 months ago.

2. Please Rate the answer as unless you rate the answer your expert will receive no payment for answering your question.

Customer: replied 5 months ago.
Thanks
Customer: replied 5 months ago.
Given that no payment has been made on it since 2011, do you think they would potentially just take the settlement instead of going after an additional amount - this is over 5 years old at this stage
Expert:  Buachaill replied 5 months ago.

3. There is every chance that the bank will simply take the settlement instead of going after an additional amount. That is a possibility. However, be aware that 5 years is not very long for a debt. Many cases run over many years and here it is not near six years since judgment.

Customer: replied 5 months ago.
Thanks for the reply. Just to add additional context, the loan is showing as written off since late 2015 and showing a zero balance with the bank in question. It looks as though the loan has now gone to a collection agency.If I pay now, I take it my credit rating cannot be changed.Should I offer a settlement with the collection agency? I take it they would have bought the amount for a small fee.
Expert:  Buachaill replied 5 months ago.

4. Yes, you are correct. Payment now, will not affect your deteriorated credit rating. It will take five years for your credit rating to improve once again. Secondly, no doubt the collection agency have purchased the debt for a percentage of the amount owed. Again, offering a settlement amount might resolve the issue. However, be aware that the collection agency will expect more than they paid for it. So, expect some to-ing and fro-ing to resolve the issue.

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