Delinquency

Avoid Delinquency

Delinquency affects your relationship with your Credit Union negatively.

  • Limits fund for future lending.
  • Limits ability to develop services and products.
  • Affects overall standing among Credit Unions.
Delinquency results from many factors:
  • Not making your loan payment on the scheduled date.
  • Paying less than the amount required.
  • Paying irregular lump sums instead of monthly instalments.
  • Salary deduction increases not being effected on time.
Actions taken on delinquent loans include:
  • Telephone Calls or Visits to the Members, their Guarantors and Co-makers.
  • Letters to the Members, their Guarantors and Co-Makers.
  • Transfer of Savings.
  • Sale of Collateral Pledged – i.e. Motor Vehicle or Property.
  • Arbitration – Meeting among all parties, i.e. Credit Union, Member, Guarantors and a Mediator.
  • Court Action.
Consequences of delinquency:
  • You will be limited to cash secured loans.
  • Your Guarantors, if any, stand to lose as they will not be able to access any loans until your loan is settled.
  • Your Co-makers will lose their savings pledged as security for your loan.
  • Legal action may be taken against you, your Guarantors and Co-makers.
  • Repossession and or sale of items pledged as security.

 

Disclaimer: The terms and conditions of the products are subject to change from time to time. Please confirm the current terms and conditions with a Member Service Representative.