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1. What is a Reschedule Loan:

Loan rescheduling is a process where the terms of your existing loan are adjusted to make repayments more manageable. This might involve reducing monthly payments by extending the repayment period, reducing your interest rate or both.

2. Why Reschedule Your Loan?:​
  • Financial Hardship: Unexpected events like job loss, illness, or increased expenses can make it difficult to meet loan repayments. Rescheduling can provide temporary relief. ​
  • Improved Cash Flow: By spreading repayments over a longer period, you can free up money for essential expenses.
3. Qualifying for Loan Rescheduling:​
  • Be experiencing genuine financial difficulty ​
  • Have a consistent repayment history (with some exceptions)​
  • Demonstrate a clear plan for managing your finances going forward​
  • Complete an income and expenditure form​
  • Make the required reduced repayments for at least 3 consecutive months before the reschedule (any missed payments during this qualifying period will be extended by a further 3 months to demonstrate stability)​
  • The loan will finish within 5 years of the original loan
4. Reschedule Period:​

The maximum loan term with Notts and Lincs Credit Union is 5 years from the start of the original loan (e.g. a loan starting in August 2024, the rescheduled loan must finish by August 2029) ​

This means the reduced repayments will need to allow for the loan to be fully repaid during this period to qualify for the reschedule.

5. The Advantages and Disadvantages of a Loan Reschedule:​

We want you to be able to make informed financial decisions. Below are the advantages and disadvantages of rescheduling:​

Advantages:​

  • Provides temporary financial relief​
  • Reduces monthly payments​
  • Extends repayment period​
  • Avoids default and potential damage to credit score (will show as a payment arrangement)​

Disadvantages:​

  • May increase the total amount repaid over the loan term​
  • May negatively impact your credit score if not managed responsibly​
  • You will be unable to top-up your loan with us as you will need to settle the loan before applying for additional funds.
6. Consequences of Failing to Maintain the New Agreement:​

If you fail to make payments according to the new rescheduled agreement, you will be in default of your loan. This can have serious consequences, including:​

  • Increased interest charges​
  • Damage to your credit score​
  • Referred to our external debt collector Corporate and Legal (C&L)​
  • Potential legal action​
  • Default being registered for your loan
7. Important Considerations:​
  • Seek advice early: If you anticipate financial difficulties, contact us as soon as possible to discuss your options​
  • Be honest and transparent: Provide accurate information about your financial situation​
  • Create a budget: Develop a realistic budget to help you manage your finances effectively​
  • Consider long-term solutions: Rescheduling is a temporary measure. Explore ways to improve your financial situation in the long term​

Please note that loan rescheduling can only be completed once during the lifetime of the loan.​

Remember, loan rescheduling is a tool to help you manage your finances during difficult times. It’s important to use it responsibly and to seek advice when needed.

8. Getting Further Help with Debt:​

If you’re struggling with debt, some organisations can offer free, confidential advice and support. Two of the largest are:​

9. Support Services from Notts and Lincs Credit Union:​
  • Benefits Calculator: Our online benefits calculator can help you check if you are entitled to any benefits you may be missing out on. ​
  • Money Guidance: Our trained Money Guiders team can provide guidance on budgeting, debt management, and other financial matters.​
  • Money Helper: Provides free money guidance you can trust
10: How Loan Rescheduling Affects Your Credit File:​

A loan reschedule will appear on your credit file as a payment arrangement account. This will show that the repayment terms have been changed. While it’s not necessarily negative, it can impact your credit score. Maintaining consistent payments on the rescheduled loan is crucial for rebuilding your credit history.

11. How to make a complaint:​

Contact Us: If you have a complaint, please get in touch with us as soon as possible. You can reach one of our Member Services Team through any of the following methods:​

  • Call us at 0330 004 0842​
  • Email us at info@nottsandlincscu.co.uk​
  • Via the complaints section online or in-app​
  • Visit your nearest branch and speak to our staff in person​

Provide Details: When making a complaint, please provide us with as much relevant information as possible, including your member number and a clear description of the issue you encountered.​

Complaint Handling: Once we receive your complaint, we will thoroughly investigate the matter to understand what went wrong and why. We aim to resolve your concerns promptly and fairly.

Acknowledgement: We will acknowledge the receipt of your complaint within 1 working day.​

Resolution: Our team will work diligently to resolve your complaint as quickly as possible. We will keep you informed throughout the process, and in most cases, we aim to provide a resolution by close of business the next working day.​

Financial Ombudsman Service: If, for any reason, you are dissatisfied with our response to your complaint or believe that it has not been adequately addressed, you have the right to refer your complaint to the Financial Ombudsman Service.​

Financial Ombudsman Service:​

Address: Financial Ombudsman Service, Exchange Tower, London E14 9SR​

Phone: 0800 023 4 567 or 0300 123 9 123​

Email: complaint.info@financial-ombudsman.org.uk​

The Financial Ombudsman Service is an independent organisation that helps resolve disputes between financial institutions and their customers. Please note that the Ombudsman can only consider your complaint after you have allowed us to address it.​

Our Authorisation and Regulation:​

Notts & Lincs Credit Union is a financial services organisation and is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority.​

Registered Office: 69 Maid Marian Way, Nottingham. NG1 6 AJ.​

Registration number: 213439

Financial Services Register: You can verify our authorisation on the Financial Services Register by visiting the Financial Conduct Authority website www.fca.org.uk or by contacting the Financial Conduct Authority on 0800 111 6768.​

We are dedicated to ensuring that your complaints are handled with utmost care and attention, and we are always working to improve our services based on your feedback.

12. Data Protection:​

We adhere to strict data protection guidelines to safeguard your personal and financial information.​

Your data will be processed and used in compliance with relevant data protection laws and regulations.

13. Savings:

Any savings held with us will be used to reduce the balance of the outstanding debt before the rescheduling is completed. You will no longer be required to save into a Pledge Savings account.

14. Flexibility During Reschedule:​

We understand your financial situation may improve during the rescheduled period. You have the flexibility to make additional payments towards your loan at any time. This can help reduce the total interest paid over the term of the loan and shorten the repayment timeframe. Additionally, you can pay off your loan in full at any time without penalty.

15. Changes to Terms and Conditions:​

We may update our terms and conditions from time to time. We will notify you of any changes in advance to keep you informed.​

We believe that an informed saver is an empowered saver. This brochure provides an overview of our Savings Accounts’ terms and conditions. Before opening your savings account, please read this fully and seek clarification on any points you may find unclear. If you have any questions or require further assistance, our friendly team is always here to help.

This webpage is for informational purposes only and does not constitute a loan agreement. All loan applications are subject to credit and affordability check. Terms and conditions apply.

If you would like this information in large print or audio format, please contact us on 0330 004 0842

 

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority – Registration number 213439 

August 2024