It is not a nice topic to discuss, but real life throws up uncomfortable situations for us all. Moolr commit to sourcing competitive finance deals for all. However, we only look to accept those that are confident in making timeous repayments on any loan. Nevertheless, we all suffer from unforeseen circumstances sometimes. Occasionally, some borrowers will struggle to meat their repayment requirements. Moolr advise contacting your lender immediately to discuss. They will look to help you. Do not turn a blind eye to problems, hoping they go away. Deal with a problem head-on. With that in mind however, we thought it useful to look at the possible consequences of missing financial repayments. This includes a look at collection agencies.
Collection agencies
Fail to settle your agreement on time, and the lender may take collection action on your debt. Providers implement different processes in order to collect the debt. We strongly urge you to fully understand and agree to terms and conditions from a chosen lender. Collection agencies are companies tasked with dealing with recouping missing payments. Read below for more details.
Late or non-payment penalties
Repaying your agreement means that should you require more funds the following month, your creditworthiness will be improved. This is entirely plausible, subject to sensible budgeting.
Speak to the provider should you have difficulties. If you cannot resolve the situation, you run the risk of having penalties or fees applied. Moolr are a broker so do not issue loans directly. If you are struggling with repayments having taken out a loan via the Moolr website, contact the relevant lender direct.
Accept a lender’s offer only if you are fully confident that you can afford the repayment. Lender charges will increase the true cost of your agreement. Consider bank processing times during holidays and busy periods/ Plan your liability accordingly.
The date of repayment will be made clear to you by your accepted provider, so please keep a note of this. It will form your commitment to the agreement.
Credit reference agencies
Continue to fail to repay your loan, and credit reference agencies will also make a note on their records of the outstanding debt. This may negatively affect your credit score. The records can remain on file for up to 6 years, and agencies may pass on to other credit and fraud agencies. This is to ensure agencies can trace you and pursue repayment. Likewise, by committing to your liability on time and in full, this may reflect positively on your credit file. Portray yourself as a reliable borrower by fully paying off a loan on time and in full.
Collection organisations
Providers forge relationships with collection agencies to help recover outstanding debt. This is usually only put in to action as a last resort. A last resort should ordinary attempts to resolve outstanding debt be unsuccessful (e.g. phone calls or emails). Each lender has different collection policies, so we urge you to check their terms before accepting your final agreement.
Late or non-payment penalty charges
As with all financial products, make every effort to settle your agreement on time. By doing so, it is possible that this will show on your credit report. If you are having difficulties in settling your agreement, then it is always best to speak with your provider in the first instance. There is usually a way to avoid a late penalty fee. The key thing is that lenders accept that even with the best intentions to make timely repayments at the time of taking out a loan, unforeseen changes in circumstances can leave some people struggling with repayments. The worst thing you can do in this situation is ignore the problem and hope it goes away. Be proactive at all times.
People are understandably reticent to face problems a lot of time. However, the relief you will feel if the problem is dealt with cannot be underestimated. Get peace of mind and remove the daily stress by sorting any obstacles along the way.
Once you have applied with us, and accepted a provider’s offer via their website, your relationship with us ends. You then deal directly with them. It is therefore essential that you make every plan to settle in a timely fashion. Ensure that you are happy with the lender’s terms and conditions. Please remember, that time goes quickly, and your settlement date will be upon you before you know it. Also plan for busy banking periods, such as bank holidays, to ensure you have no trouble settling in full.
Credit reference organisations
Short term financial solutions are not, as some people think, exempt from credit reports. If you are unable to meet your repayment, it is likely that a credit reference organisation will be informed. The organisation will make a note on your credit report to reflect this. The implication of this is that your credit rating will be negatively impacted. Records will be kept on your file for as long as six years, and could also be passed on to additional credit agencies or fraud organisations. This is to ensure that you can be tracked should another payment need to be chased from a creditor. Similarly, meet your settlement date in full, and then a note could be made on your credit file that improves your credit rating. Please check your provider’s terms regarding this.
