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9. Arrears

Arrears are:

  • outstanding management fees;
  • outstanding interest payments; and/or
  • any other outstanding amounts relating to any other charges or interest payments.

Our policy

  • Unregulated accounts - Although only some of the accounts under the scheme are FCA-regulated, we will treat non-regulated accounts with equivalent standards.
  • Treating Customer Fairly - Borrowers will be treated in accordance with the principles of Treating Customer Fairly, with due consideration given to forbearance and ‘breathing space’ as appropriate.
  • Verification - Before pursuing a borrower for the repayment of arrears, we will take reasonable steps to verify the accuracy and adequacy of the data relating to the account in arrears to ensure that it only pursues the verified borrower and for the correct amount.
  • Notification - Borrowers whose accounts go into arrears will be provided with information about the arrears before any attempts are made to recover the arrears. Having been provided with suitable information about their arrears, borrowers will be provided with a reasonable amount of time in which to make good the arrears.
  • Signposting - When an account falls into arrears and the borrower is experiencing financial difficulties, we will refer the borrow to a source of free and independent debt advice.
  • Assessment - Where a borrower is in arrears, we will take steps to understand a borrower’s financial circumstances to determine a suitable arrears management plan.
  • Arrears management tools - A range of suitable tools will be made available to borrowers in arrears to be capable of addressing the various repayment issues that borrowers may face.
  • Default - A Default Notice will be issued to a borrower 180 days after a loan goes into arrears where: there has been no engagement or co-operation from the borrower; or the borrower has not satisfied any arrears management agreements made. The Default Notice will provide 28 days’ notice to the borrower to make good the arrears.

What it means to you

The overriding objective of arrears management is to help borrowers get back on track with their loan repayments. Our arrears policy means:

  • You will be treated in essentially the same way as a borrower with a regulated account, even if your account is not regulated.
  • We will provide you with sufficient information about your arrears for you to understand the situation.
  • We will provide you with sufficient time to make good your arrears.
  • If you can’t make good your arrears in the short term, we will help you select a method of repayment to suit your circumstances.