Skip to main content

Yes, you can go to court for not repaying a loan, however this is typically only the case if you have multiple loans and have not paid these back. In this case, your lender could take the issue to court, and you may be given a county court judgement (CCJ).

However, your lender will not always take you to court for not repaying their loan. If you have only failed to repay one loan, and the outstanding amount is fairly small, the lender will likely take a different course of action. This is due to the fact that it is not worth the lender’s time or money to take you to court, as the cost of this itself can outweigh the outstanding cost of the loan debt.

This being said, you should always keep up with repayments on any loan you take out, as failure to repay the loan can result in more fees, and could potentially harm your credit rating.

It might start with taking out one loan for bad credit, but take out lots of loans and struggle to repay, you can find yourself in a difficult position.


Getting in Contact to Collect Funds




Before taking the issue any further, your lender will try to reach you through any and all means of contact you have provided them with. This can include:

  • Mobile phone
  • Landline
  • Email
  • Post

All valid lenders are under the regulation of the Financial Conduct Authority (FCA), so when trying to collect the outstanding debt on your loan, they will have to follow the FCA’s regulations.

This means that the lender cannot try to collect the debt through any unethical methods, and is only allowed to contact you throughout particular times of the days and weeks.


What Else Can Happen If You Don’t Repay a Loan?




If your lender does not take the matter to court, they may go through other ways to try and collect the debt. This can include debt collectors, a preferable option for lenders. This is because debt collectors are a less expensive and less complicated than taking court action.

The method a lender takes to collect the debt can vary, depending on the outstanding amount and other details of the situation, including the loan type.

A lender can take action to collect any outstanding debt owed on various types of loans, including online payday loans, personal loans and secured loans. However, details of how this is collected may vary, for example, those with a secured loan will be at risk of losing any valuable assets they have secured as collateral on the loan.


When Will Debt Collectors Get Involved?




If your lender has contacted you about an outstanding debt and has not received a response, professional debt collectors may get involved. Lenders will only enlist the help of debt collectors after a certain period of time, this typically being two months.

When called upon, the debt collectors will get in touch. You will then have to organise repaying any outstanding debts with these professionals instead of the lender directly.


What Happens If You Don’t Have Money in Your Account?




The majority of lenders will attempt to take the repayment they are owed on the agreed-upon repayment date. If you do not have money in your account, lenders will attempt to take the money again over a period of time before they take further action, such as taking court action or hiring debt collectors.

When struggling with repayments on a loan, it is always best to contact your lender to sort out alternative payment plans. This will make outstanding payments more affordable than not paying at all.

Leave a Reply