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Whats happens if I miss payments

Missing a loan repayment can feel stressful, but understanding what happens next can help you act quickly and reduce extra costs.

WHEN A REPAYMENT IS MISSED

If your loan repayment can’t be processed (for example, due to insufficient funds in your account), it's considered a missed payment.

This usually happens when:

  • There isn’t enough money in your account on the due date

  • Your bank declines the payment

  • Your account details are incorrect or no longer valid (for example, the card expired)

When a payment doesn't go through, your loan becomes overdue, and you're in default under your contract until the missed payment (and fees incurred) have been paid in full

NOTICES ARE SENT TO YOU

Whenever a repayment is missed, we will notify you with a friendly email and text message outlining the next steps and the deadline to settle the missed payment before we attempt to debit your account again.
 
If this is your first missed repayment, you'll also get a second, more “formal” notice from us. To understand why we send two notices, you can read more HERE.
 

WHAT DOES IT COST 

When a repayment fails, a dishonour fee will be applied to cover the costs our team incurs in reprocessing the failed payment. If this is the first instance of dishonour for this payment, a late payment fee will also be charged as per your contract. Additionally, penalty interest will accrue on the overdue amount until your account is brought up to date. 

 

Key things to know:

  • The fees are charged in addition to your regular repayment

  • A dishonour fee is applied each time a repayment attempt fails

  • The fees are added to your repayment amount that we will attempt to collect, increasing the amount you owe

  • Penalty interest will apply until your account is up to date

An example of a $200 single missed payment is illustrated below:

What happens Fees Added Amount 
We attempt to process a payment, and it fails   $200.00
Dishonour fee charged $14.95  
Late payment fee charged (if 1st attempt) $20.00  
     
Total now due and scheduled for reprocessing in 7 days   $234.95

Additionally, penalty interest (not illustrated) will accrue on this amount until it is paid off.

If the issue is not rectified, repayments will begin to accumulate, and extra fees will be added. An example of this, along with the financial impact, can be seen HERE.

Fees may vary between products. For the latest fee schedule, visit HERE for payment plans and HERE for personal loans.

HOW LONG DO I GET TO FIX THE PROBLEM 

Once a missed payment happens, you'll have 7 DAYS to resolve it. You can do this by
  • Making a payment for the outstanding amount plus the fees charged
  • Reaching out to us to set up a payment arrangement if more time is required
  • Make sure your account has enough funds to the missed payment plus fees when we try to reprocess on the scheduled date.
Please note that it is your responsibility to take action. If we do not hear back from you or if no arrangement is made, we will assume you are fine with resolving the issue by reprocessing the payment.
 
We will automatically attempt to process your payment again after 7 days. If the payment fails once more, additional fees will be added to your total due, and the updated amount will be scheduled for payment in another 7 days. 
 

WHY FIXING IT EARLY MATTERS 

 The sooner a missed repayment is resolved:

  • The fewer fees you’re likely to pay

  • The less interest will accrue

  • The easier it is to get your loan back on track

Promptly fixing a missed payment helps stop costs from compounding and reduces the overall impact on your loan and ultimately your credit score if the default is not rectified.