Responsible Lending

Our lenders do:

  • Assess that applicants can afford a loan, and will be able to repay them.
  • Provide clear, transparent customer contracts and communications.
  • Treat customers in a helpful, polite manner and deliver excellent standards of service.
  • Maintain above average levels of customer satisfaction.

Our lenders do not:

  • Target people with debt issues.
  • Lend to people who they believe are unable to repay.
  • Deal with customers if their personal details are unable to be verified.

Here at Credit Chum Ltd we care because money matters. We are committed to responsible lending and so we make the following commitments to you:

  • We do not charge fees.
  • We are open and transparent about the way our products work.
  • We work with you to find the best solution for you.

We will always do our best to help, which means we will always ensure that the loan we arrange for you is affordable given your circumstances. If you are ever in a position where you are not sure if you can manage your payments, then let us know and we can point you in the right direction. We feel it is essential to our business that we offer support to all customers in financial difficulty, and we have taken all the precautions to make sure you don't get into any difficulty in the first place!

Below are some commonly asked questions about loan repayments and renewals.

What if I miss a payment?

If you think you are likely to miss any of your loan repayments as you are unable to afford it, then you should contact your lender immediately.

The penalty for missing any of your repayments can vary depending on which lender we were able to find you a loan with. In general, if a lender attempts to collect a payment on the date you specified with them when you took out the loan, and the payment fails, they will most likely attempt to contact you immediately to recover the missing amount. If they are unable to do so, then you may incur an additional fee which will be added to the balance of your loan, and you will also continue to accrue interest on the missed payment (and possibly the fee).

Missing your loan repayments in this way will have a negative effect on your credit rating, the Credit Reference Agencies will be informed and make a note of your outstanding debt, and this may make it more difficult for you to obtain credit in the future. In extreme circumstances, if you continually miss payments for an extended period of time, certain lenders may transfer your debt to their debt collection partners, with any future communications regarding your debt being dealt with by them.

The bottom line is communication, if you think you may have trouble repaying your loan then simply speak with your lender as soon as possible, they will be able to explain to you your options in full, and may be able to agree a repayment schedule which suits you both.

What if I'm late with a payment?

That's OK, but it is important that you communicate with your lender regarding this. Most lenders are flexible and will work with you to overcome any difficulties that you may have.

Taking longer to make a repayment may result in the loan extending beyond the original repayment date. In this situation, the lender reserves the right to add additional interest to your loan. Your lender will clarify this with you when you contact them.

The lender reserves the right to mark late payments on your credit record, being late once or twice probably won't affect your credit score too much. However repeated late payments or missing payments may prevent you from being approved for any future finance you may desire.

What if I am unable to afford the repayments?

If you are unable to afford the repayments you have agreed with your lender, then you should contact them as quickly as you can. In the vast majority of cases, lenders will be happy to work with you to agree a payment plan which is affordable to you.

You should never ignore the problem, as the lender will view this as an attempt to avoid repaying their loan, and they will take the necessary steps to recover their debt (see the 'Missing Payments' section).

Can I renew or extend my loan?

Most lenders are happy to renew a loan upon completion of your current loan, as long as your account was kept up to date and repayments made on time. Some lenders will allow you to borrow more the second time, if you choose to take out more money, please ensure that you have the means to make the repayments.

In case of difficulties, you may be able to extend your loan over a greater period of time. It's important that you talk to your lender at the earliest possible opportunity, so that they can work with you and help you overcome whatever issues you may have.

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