What happens if I don’t pay my loan?
When you take a loan with us you become a Hoot member. Being a Hoot member means you are part of a community that encourages good money management, active saving and responsible borrowing. We have a responsibility to make sure our members’ money is safe and well managed, and that you are repaying the money you owe.
We know that from time to time people may struggle with money because of the demands of everyday life. Loss of your job, unexpected expenses or other circumstances can sometimes overwhelm you and cause worry and stress about how you can keep up with payments. Sometimes we know that it is a short term problem and you just need a little time to get back on your feet.
- If you stop paying your loan, it will go into ‘arrears’ meaning that you are behind with repayments. If your loan goes into arrears you will not be able to take out any savings you have in your account, or apply for another loan.
- We will try and contact you by telephone, text and email so we can talk about why you are not paying and come up with a solution.
- If you don’t respond to our calls and texts we will send a series of letters explaining the consequences of not paying, and what may happen next if you don’t respond.
- If we still get no response, then we will put your loan in ‘default’. This means that you have not made any attempt to repay and we may take legal action to recover the money you owe us. This might be in the form of a court order, attachment of earnings or a deduction from your benefits.
- If your loan goes into default, we will take any savings you have to offset some of what you owe us before we take enforcement action. Our right to take the savings is included in the terms and conditions of your loan.
- Any missed payments and court actions will show on your credit report, making it difficult for you to get affordable credit elsewhere, or to get any further borrowing from us.
It is important that you contact us straight away if you get behind with your repayments. We can discuss your situation and come up with a solution that avoids any of the actions above.