We wanted to let you know about some recent changes to our services. As part of our efforts to increase transparency for our customers, and to improve the way we deal with difficult situations outside of our borrowers’ control, we’ve made an amendment to our borrower statuses.
In cases in which a borrower is unable to repay their loan due to an extreme circumstance change, for example terminal illness, we have now added a new ‘Hardship’ status. A borrower is given Hardship status when they are able to evidence their change in circumstance. When a borrower is given a Hardship status, the interest on their loan is then frozen and the Safeguard fund steps in after four months of arrears.
This borrower status will only be used in very extreme circumstances and we expect this status to be used on very rare occasions. In these circumstances, borrowers will only pay back capital on their loans, not interest, until their status changes. As always our collections team will work with these borrowers to help them to get them back on track with their repayments.