As loan providers, it is important to do everything by the book to ensure that you are secured throughout the collections process and that there is a clear stream of communication between the lender and the customer. This is why lenders must adhere to the FCA’s Debt Collection Guidance. These regulations apply to the collection of debt when a customer’s ability to repay has been compromised.
We appreciate that all customers are different and that each individual’s circumstances may vary from the last, so whilst upholding these guidelines, our lenders do their best to remain objective and treat customers as fairly as possible.
How Are Your Payments Collected?
The majority of lenders will be in contact via the following to reschedule repayment:
Just note that in the event of non-payment, you may be charged an increased interest rate, and it may have a damaging effect on your credit rating.
In the case of continual non-payment, your debt is likely to be assigned to a debt collection agency, meaning you are likely to incur further charges and strikes to your credit score.
Whether you are unsure about your ability to repay your debt, or if you are currently struggling to meet the proposed arrangements, please do communicate this with your lender directly as soon as you can so you can both meet at a solution.
It is possible that you can come to one of these conclusions:
You may be able to postpone and rearrange your loan repayment amounts and date
You may be able to negotiate other options with your lender to avoid being passed onto a debt collection agency
If you need some extra help or advice with your debt, there are several organisations throughout the UK that can help you:
•StepChange Debt Charity
Phone: 0800 138 1111
•Money Advice Service
Phone: 0800 138 7777
Email: [email protected]
Phone: 0808 808 4000