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.


Talk to us

Talk to us

Credit unions value their members and are here to help so we dislike taking any kind of action with regard to people who cannot pay their loan. The money you have borrowed comes from the savings pot of other members. We therefore have a responsibility to help you to pay us back. If necessary we will use debt recovery or court action.


If you do not repay your loan, your credit rating may be affected and you will find it harder to get credit. Not only does it add more costs to your debt but can affect you for years into the future when you apply for credit, mobile phone contracts, car finance, opening some bank accounts or even passing pre-tenancy checks when you want to move house.

Get Help

Get Help

If you have tried to bring your household finances under control but are struggling to make it all add up; don’t ignore it. Getting help sooner rather than later is important.


There are places you can go and people you can speak to help you manage your money.


Make sure you contact charities or organisations that give free guidance and advice. There is no need to pay for help with debt.


If you are having trouble paying your Hoot loan contact us straight away. We may be able to help.

Take Control

Take Control

Keep a spending diary – write down everything you spend in a month including bills, cash spending and anything spent on your credit or debit card. Having a true picture of what you spend will help you to make changes.  Download our useful Hoot Budget Planner.


Check your bank statements – You may be surprised at how many services or subscriptions go out of your account by direct debit every month that you don’t use — or need


Check your credit score – Check your credit report to see if there are any mistakes or if you’ve been a victim of fraud.

Struggling to pay?


It is important that you contact us straight away if you are struggling with your loan repayment.  It is better to talk to us as soon as you can so don’t be embarrassed about contacting us. We will be happy that you have contacted us to put things right.


Call us as soon as possible on 01204 365024 to see if we can help.

Do you need support and want someone to help you to manage your money or have so many debts you don’t know who to pay and when?


Bolton Moneyskills – www.boltonsmoneyskills.org.uk, 01204 332916
National Debtline – www.nationaldebtline.org, Tel. free 0800 808 4000


Do you feel that you can’t seem to cope with it all and are feeling stressed and ill because of it?


Make an appointment with your GP or go online to www.nhs.uk and type ‘money worries’ into the search box for advice.


Do you want to know where you can go to help you save money?


Money Saving Expert – www.moneysavingexpert.com
Bolton Moneyskills – www.boltonsmoneyskills.org.uk, 01204 332916

Deal with your debts – If you are feeling worried or ashamed about speaking to someone about your debt you are not alone. 41% people admit to not feeling able to get help. There are debt management charities that will not charge you for helping you manage your debt.


Look for money saving ideas – There are lots of websites offering money saving tips and discounts. These range from ways to reduce your energy bills, save money on food purchases and ways to boost your income.


Check you are claiming all the benefits you are entitled to – You can find out what is available and try a benefits calculator at www.gov.uk/browse/benefits/entitlement.