• Limits fund for future lending.
• Affects dividend payments.
• Limits ability to develop services and products.
• Affects overall standing among Credit Unions.

Delinquency results from many factors:

• Not making your loan payment on the schedule date
• Paying less than the amount required
• Paying irregular lump sums instead of monthly installments
• Salary deduction increases not being effected on time.

Actions taken on delinquent loans include:

• Telephone Calls or Visits to the Members, their Guarantors and Co-makers
• Letters to the Members their Guarantors and Co-Makers
• Transfer of Savings
• Sale of Collateral Pledged – i.e. Motor Vehicle, Property, or Appliances.
• Arbitration – Meeting among all parties, i.e. Credit Union, Member, Guarantors and a Mediator
• Court Action
• Imprisonment

Consequences of delinquency:

• You will be limited to cash secured loans
• Your Guarantors, if any, stand to lose as they will not be able to access any loans until your loan is settled
• Your Co-makers will lose their Shares pledged as security for your loan
• Legal action may be taken against you, your Guarantors and Co-makers
• Repossession and or sale of items pledged as security.