Contact Oldham CreditUnion

What Happens If You Don’t Repay Your Loan?

At Oldham Credit Union, we understand that life can sometimes make it difficult to keep up with loan repayments. Our aim is to help you find a solution before things become more serious. Please see our page on how we might assist you paying the loan back-
Struggling to Repay Your Loan?

If you cannot repay your loan, it’s important to know what will happen next.

Going into Arrears
If you stop making loan payments, your loan will go into ‘arrears,’ meaning you’re behind on your repayments. When this happens, you won’t be able to withdraw any savings you have in your account or apply for another loan.

We Will Try to Contact You
Communication is key. We will try to reach out to you by telephone, text, and email to discuss why you are not paying and to find a solution together.

We Will Send Letters
If we can’t reach you through calls and texts, we will send a series of letters explaining the consequences of not paying and what may happen next if you don’t respond. It’s crucial to read these letters and get in touch with us.

Using Your Savings
If your loan goes into default, we will use any savings you have with us to offset what you owe before taking further action. This is part of the terms and conditions of your loan agreement.

Loan Default
If we still don’t receive a response, your loan will be marked as ‘default.’ This indicates that no attempt has been made to repay the loan. At this stage, we may take legal action to recover the money you owe. This could include obtaining a court order, an attachment of earnings, or a deduction from your benefits.

Court Action
Missed payments and any court actions will appear on your credit report, making it more difficult to obtain affordable credit in the future. It will also impact your ability to borrow from us again.

Talk to Us
If you’re struggling with your loan repayments, the most important thing you can do is talk to us. Contacting us as soon as possible allows us to help you find a way to manage your repayments.

You can reach us by-

phone: 0161 678 7245


or the OCU secure messaging app-

Get Help
If you’ve tried to manage your household finances but are still struggling, it’s crucial to seek help sooner rather than later. There are many charities and organisations that offer free advice and guidance on managing debt. There’s no need to pay for help with debt.

Useful resources can be found on our Help with the Cost of living Page-

Take Control
One effective way to manage your finances is by keeping a spending diary. Write down everything you spend in a month, including bills, cash expenditures, and anything spent on your credit or debit card. This will give you a true picture of your spending habits and help you identify areas where you can make changes.

At Oldham Credit Union, we are committed to supporting you through financial difficulties. If you find yourself struggling to repay your loan, please reach out to us as soon as possible. We’re here to work with you to find a solution and help you get back on track.

Benefits of using us

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Affordable loans from £100 - £10,000

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Easy access savings

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No hidden fees

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Flexible repayments

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Loan Calculator

This calculator is for illustrative purposes only. The actual interest rate will depend on a members individual circumstances at the time of application.
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