- 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?
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.
We’ll work with you to understand if you’re eligible for a payment arrangement and determine the best option for you. Remember, it’s always in your best interest to continue paying as much as you can towards your loan. It’s always best to reach out to our team before missing a payment or paying a reduced installment- we’re here to help you find the right solution. Forbearance should only be a last resort because it could lead to a higher total cost of borrowing. You can learn more about forbearance here.
If you’re unable to make payments or choose not to pay, your loan will first fall into arrears and then into default.
What happens if my loan goes into default?
If your loan is in default, we will terminate the agreement we have with you and begin legal proceedings to recover the outstanding balance. Our loans are enforceable in 150 countries.
Legal enforcement generally begins through arbitration, except when the outstanding balance is below a certain level - in those cases proceedings will begin in court. 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