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 customer 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, particularly in these uncertain times, which means our arrears process is designed to work with our customers, 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 customers may not be able to meet their loan repayments. These include redundancy or changes in jobs, changes in State Benefit eligibility, or bereavement. Of course, it is early days in terms of assessing the financial impact to households during the current crisis, and we advise you to contact us as soon as possible should your circumstances change and we will work with you to find a solution.
It may work for some customers to have their arrears added to the loan term, so they are no longer in arrears. For others, an adviser may need 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 customer experiences severe hardship, particularly due to measures imposed during the COVID-19 outbreak, 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.
If your loan is in arrears or your circumstances have changed, please contact our team as soon as possible and we will work with you to find a solution.
