Changes to rebuildingsociety’s Terms and Conditions

These changes are applicable to borrowers with rebuildingsociety and will be of interest to lenders.

Late repayment charge

Over the past couple of weeks has experienced a high number of late repayments from borrowers. We believe that this has been symptomatic of the summer holiday period, with a number of directors away on leave and standing orders failing for one reason or another. The first is a characteristic of working with small businesses where only a single director or member of staff has authority to access bank accounts and manage payments.

Whilst we have managed to bring all late repayments up to date, we recognised that there were a few areas of the system that needed improving.

As such, we have now updated our Terms and Conditions to include a late repayment charge of 15% of the value of the repayment on repayments that are 7 or more days overdue (21.2).

Secondly we will now be requesting that on completion the Borrower provides the name of a staff member or responsible person that will have the authority to handle repayment issues in their absence.

Default status

We have also added an additional clause to the T&Cs allowing us to, only in exceptional circumstances, place a loan in default prior to it actuating the normal default triggers (21.5). This will only be used in exceptional circumstances and at the sole discretion of For example if a repayment is overdue, and we continue not to receive a response or any communication form a director about the repayment, or we have a substantial reason to believe that the loan is at risk, and finally believe that the initiation of the default process is the best means of recovering the debt owed.

Furthermore, addressing the problem of standing orders not coming through as expected, we will be moving towards a fully integrated and automated Direct Debit repayment system in the near future. We believe that will go some way at least to ensuring that repayments are received promptly. aims to maintain a strong relationship with both lenders and borrowers, and will always initially seek to reconcile a delayed payment through negotiation rather than legal enforcement, as we believe this to be in the best interest of all parties. In order to maintain this strong relationship we will continuously review and where needed amend our processes and policies.

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