- What if I can’t pay this month?
- What happens if my loan goes into default?
- If I miss a payment, will it reflect on my credit report?
What if I can’t pay this month?
We're here to help. If you’re unable to make a payment on your loan due to financial difficulties or other personal circumstances, your first step should be to contact our team at email@example.com.
It’s always best to reach out to us before missing a payment or paying a reduced installment. We have forbearance solutions available and we’ll work with you to understand your situation and determine the best solution for you. You can learn more about forbearance here.
Missing a payment or paying less than your monthly repayment without speaking to us and/or making suitable arrangements, will negatively impact the status of your loan as well as your credit profile. You can learn more about our credit reporting process here:
What happens if I continue to miss payments on my loan?
If you fall two or more monthly payments behind, we are required by law (the UK Consumer Credit Act), to send you a Notice of Sum in Arrears (NOSIA) and a Subsequent Notice of Sum in Arrears (SNOSIA) every 6 months thereafter for as long as your loan remains in arrears.
We will also start reporting your loan's negative payment status to the credit bureau.
Continuing to miss payments will result in your loan being referred to our external lawyers who will contact you regarding the outstanding amounts. In addition, you will be charged a Default Sum, which is an amount charged to you for defaulting on your loan agreement and for the costs we incur in enforcing our rights. The following charges will be applied to your loan:
- USD 96.00
- GBP 72.00
- EUR 84.00
A Notice of Default Sums will be sent to you notifying you of this charge and we will also display it on your statement.
We are required by law to send you a Default Notice prior to defaulting the loan. Should you fail to bring your loan up to date following the above, we will send a Default Notice giving you 14 days to clear all your arrears and bring your loan up to date. Should you fail to do so, your loan will be defaulted
What happens if my loan goes into default?
If your loan is in default, we will terminate the loan agreement we have with you and begin legal proceedings to recover the outstanding balance.
Please note that the option to request a payment arrangement is no longer available once your loan has defaulted.
What do legal proceedings mean?
- The matter will be referred to arbitration in London and, thereafter, to your local court for enforcement.
- The legal costs incurred and interest from date of default will be added to your account, thereby significantly increasing the outstanding balance on your loan account.
You can read more about our arbitration process here.
Remember, our preference is always to help you through financial difficulties so be sure to contact us at firstname.lastname@example.org for support before you get to default.
If I miss a payment, will it reflect on my credit report?
We report payment data to Experian for US residents, and to Transunion for UK residents. By law, we’re required to report both positive and negative payment information.
If it’s the first time you’ve missed a payment, your credit score won’t necessarily reflect a change. However, if you continue to fall behind on payments, you are likely to see a negative impact on your credit score.
The credit bureaus that Prodigy Finance reports to in both the US and the UK have adjusted the process for lenders to report alternative payment arrangements during the COVID-19 period. If you were paying on or ahead of schedule but you’ve since entered a forbearance arrangement due to COVID-19, Prodigy Finance will continue to report your loan as on schedule to Experian in the US and Transunion in the UK