Did you Know: About our Late Repayment Process

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Kylie Greeff
31st August 2016

We take every measure we can in order to avoid it, but from time to time, a rebuildingsociety.com borrower will fall behind on a repayment. When they do, we have a robust process in place to deal with it.

We know that, when a loan repayment is late, investors value two things: time and information. We have built our repayment process so as to quickly bring an account up to date and to communicate to you the actions we are taking and the reasons for the late repayment.

Many platforms allow a borrower a period of grace before starting to chase a late repayment or recognising it as overdue. We don’t. As soon as a repayment is 1 working day overdue, we start to make contact with the borrower to findout what is wrong, and as soon as we learn anything, we let you know by posting an update in the Loan Updates tab of the application.

All our late payment collection work is managed by a professional and experienced debt collection company, who have specially dedicated team members managing our account.

Day One: Our late repayment team will email and call the borrowers to notify them that a repayment has not been received and to determine why this has happened and when the repayment will be brought up to date.  The outcomes of these emails and calls will be passed on to you.

Day Two: Five: If the repayment still has not been received our collections team will call and email the borrower and points of contact again, and continue to do so daily. The borrower will be a warned that late repayment fees and interest will begin to accrue on their account and that these will be due and payable.  Any communication with the borrower will be posted on the Updates Tab so that you are kept in the loop .

Day 6 – 10: If by this time the collections team still have been unable to either contact or negotiate a payment plan with the borrower, they will write formally to the directors, to inform them that their account is in arrears and that the loan may become at risk of default.

By this time most late repayments will have been recovered and will not need any further action, however on occasion, we do encounter some loans that progress beyond this stage.

Day 11 – 30: Up to this point the directors and named point of contacts will have been receiving daily calls and emails from the collections team. If no repayment plan is in place at this stage, we will take action to write formally to the guarantors, warning them that the account is arrears and that that it may be at risk of falling into default and becoming immediately payable on demand.

Interest and fees will continue to accrue on any overdue account and will need to be paid to bring a borrower’s account up to date.

Should a repayment not be received after 30 days, micro loan trading on a loan will be suspended. This is our first step to taking further legal action against the borrower. Where a loan is declared a default the account will be passed on to our legal recovery team who will look to call in any security on the loan

To understand the late repayment process more you can view our late repayment flow chart here ( https://www.rebuildingsociety.com/invest/loan-repayment-recovery/)

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