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.