NON – PAYMENT POLICY
About the policy
If a member, whether they pay weekly, fortnightly or monthly, is overdue a repayment to their loan by two weeks they will be sent the first non-payment letter – BP1. This letter will give you a date that you must contact us by otherwise your shares may be transferred to clear/reduce your arrears. A £1.00 administration fee will be deducted from your shares for this letter.
After the given date in the first letter if a member has not made any contact or made a payment then a second letter – BP2 – will be sent giving details of the action taken, the given date that the member must respond by and what the next action will be. A £3.00 administration fee will be deducted from your shares for this letter.
When the second given date has passed and if there has still been no contact or payment then a third letter – BPDC – will be sent. This letter will give you a date that it is imperative that you contact us by otherwise your account will be sent to our debt collector/ sheriff officer. All charges involved in taking this action, including court action and/or wage arrestment, will be added to the outstanding loan balance. An administration fee of £5.00 will be deducted from your shares for this letter.
A member who is paying but has not paid as per their Loan Agreement – either not paying the correct amount or not paying weekly, fortnightly or monthly regularly or a combination of both – and has therefore fallen into arrears will be sent letter PA which will give you a date to contact us by and stating that that failure to do so could result in your shares being transferred to clear or reduce your arrears.
Where the balance of the loan exceeds the shares, share withdrawals will not be permitted.