A loan in default is when the borrower fails to make some or all of the repayments due on a loan. This includes when a borrower is late on making a repayment or several repayments.
What Happens If a Borrower Defaults
For simple missed payments (for example, due to the borrower not placing sufficient funds in their nominated bank account) our automated Direct Debit facility will make another attempt at withdrawing the funds from the nominated bank account (you will be charged late payment fees when this occurs).
Should we be unable to withdraw funds from the borrower's bank account repeatedly we will contact the borrower to resolve the situtation and provide an opportunity for the borrower to make all missed repayments.
When a borrower is 30 days late on repayments we will commence debt recovery procedures and potentially refer the loan to our licenced third-party debt collector.
Remember that as a borrower you are legally obligated to repay the loan in full as stated in your Borrowing Agreement and failure to do so may be recorded on your credit file and impact your ability to obtain credit in future.
What to do if I Cannot Make Repayments
If you are a borrower and cannot make all your repayments (for whatever reason) you should contact us immeditely using the form on thepage.