Loan Delinquency

Loan Delinquency occurs when a member fails to pay his or her debt according to the terms of a loan agreement and such delinquency will undoubtedly affect any financial institution, should it be allowed to continue unchecked. It is therefore incumbent on members to ensure that proper arrangements are made, particularly with commercial banks, in order to avoid any default.

It must be noted that Credit Unions have the support of the Cooperative Development Division under Section 67 of the Cooperative Societies Act Chapter 81:03 to enforce compliance and can also refer debts to a debt collector for whatever action that is necessary. Should the Credit Union utilise its options, however, a member with a delinquent loan will incur a cost that is much greater than the unpaid loan.

Members who have delinquent accounts will have their dividends credited to their loan indebtedness