What is forbearance?
Forbearance is a period of time during repayment in which you are permitted to temporarily postpone making your regular contractual monthly payments. Your loan is not forgiven, but regular payments are suspended until a later time.
It’s common for lenders to provide this option to you if you’re experiencing financial hardship or your personal circumstances make it difficult for you to continue repaying. Remember, it’s always in your best interest to continue paying as much as you can towards your loan - forbearance should only be a last resort and could lead to a higher total cost of borrowing.
Our forbearance policy is designed to provide relief to you if you’re temporarily unable to make your payments as scheduled. Here are a few things you should know about our forbearance arrangements:
- You have to actively apply for a forbearance arrangement. If you’re concerned that you won’t be able to make your scheduled monthly payment, you should contact our team by emailing email@example.com. It’s always best to contact us before you miss a payment.
- Forbearance is usually granted for 3 months. At the end of those 3 months, we’ll contact you to review the arrangement.
- Our standard policy is to work with you to establish an arrangement based on what you are able to afford.
- There are no fees associated with forbearance.
If COVID-19 has impacted your ability to repay as scheduled, you should contact our team at firstname.lastname@example.org. Here are a few updates to this policy specific to this situation:
- If you’re eligible, we’ll grant you a zero installment forbearance arrangement, meaning that you won’t be required to pay for 3 months, but interest will continue to accrue.
- When reporting on your loan during this period, Prodigy Finance will follow guidance from the country credit bureaus to limit the impact on your credit report as much as possible. Feel free to contact us with any questions.
- 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.