How collections practices can affect you.
What happens if I can’t make repayments on time?
CreditMyFunds™ is a lending network which connects consumers looking for a loan, with lenders who are willing to lend to them. If you are unable to repay your loan on the agreed due date, it is important to get in touch with your lender directly to discuss how to get your repayments back on track. Each lender in the CreditMyFunds™ network has different collections policies, so talking to them directly and making them aware of your circumstances will help you both work together to find a mutually beneficial solution. If they don’t know your circumstances they might think you just don’t want to pay and could start taking action against you. Your loan agreement is a legal and binding contractual agreement so your lender will expect full repayment of their loan.
Read your paperwork carefully before accepting
It’s important that before you sign your paperwork, you understand the terms of the loan offer, that you can afford to meet the repayments on the dates specified, and what will happen if you fail to meet agreed repayments. It is your responsibility to make sure your repayments are made as per your signed paperwork.
What sort of action may my lender take?
Your lender will have a policy for dealing with late or non-payment of account. Late or missed payments may lead to:
– Late fees being added to your account
– Late or non-payments being reported to one or more of the Credit Reference Agencies
– Your account being sent to a collections agency
– Legal action being taken against you
– Any other action laid out in the terms of your loan agreement.
Late payments, arrears, defaults and non-payment of debts can harm your credit rating and lead to difficulty obtaining credit in the future.
Lenders do however understand that changes of circumstances sometimes do happen. If your circumstances change in any way, affecting your ability to meet your repayments on time, please contact your lender as soon as possible to let them know.
Help with debt
If you are struggling to make your repayments, there are several non-profit organisations that offer free debt advice and practical solutions in the UK
StepChange Debt Charity – 0800 138 1111
Citizens Advice – search by region for phone number
National Debtline – 0800 808 400
Money Advice Service – 0300 500 5000