When a loan is defaulted, the Total Amount Payable is due immediately on demand, which comprises the remaining principal and the contractual interest to the end of the loan term. In addition, we will add a Collections Charge up to a maximum of the sums set out in the Collections Charge schedule applicable at the effective date of the Loan Contract. If we refer the case to an external Debt Collection Agency, no Collections Charge will be added, and if the total debt is repaid within 4 months of default, the Collections Charge is waived. Furthermore, given the current climate, despite the Collections Charge accruing, we have decided to waive this Collections Charge in full if the loan defaults. However, if an agreement is not entered into to repay the debt in a reasonable time period, the Collections Charge will be added back on. Other charges that may be added are: (a) tracing charges (for finding the Borrower/Guarantor if it/they cannot be contacted by Funding Circle or a Collections Agent); (b) a fee if a field agent has been employed as part of the collections process; and (c) all litigation, enforcement and recovery costs and expenses, including (but not limited to) legal fees and expenses.
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