We understand that everyone’s financial circumstances can change unexpectedly and our initial financial assessment leaves room for unexpected expenses. Our loan repayments are also tailored to the client to meet their specific circumstances by our expert advisers both at the time of the assessment and for the lifetime of the loan. However, no one can predict the future which means our arrears process is designed to work with our clients, not against them.
If a loan account falls into arrears, we treat each case individually. In our experience, there are a range of reasons why clients may not be able to meet their loan repayments. These include redundancy or changes in jobs, changes in State Benefit eligibility, or bereavement.
It may work for some clients to have their arrears added to the loan term, so they are no longer in arrears. For others, an adviser may visit to complete a new financial assessment to understand how the changes have impacted on the household finances before coming to an arrears repayment plan. We can consider lengthening the loan term to reduce the monthly repayments, or converting the loan to an interest roll-up product to remove the need for monthly repayments (depending on age and eligibility).
Where a client experiences severe hardship, we are also able to freeze the interest on loan accounts to take the pressure off until the situation has improved or a new loan agreement has been arranged.
Sometimes, it is simply a case of a client not transferring funds into their bank account in time to meet their monthly direct debit, in which case a quick phone reminder is all it takes to get people back on track!
The proof is in the pudding in terms of our current loans in arrears which stands at a strikingly low 1.45%. We believe this is a testament to our in-depth assessment process upfront, as well as the relationships we build with our clients from the outset as a trustworthy and approachable lender.
If your loan is in arrears or your circumstances have changed, contact our team as soon as possible and we will work with you to find a solution.