What happens if I have doorstep loan arrears?
If you miss payments to your doorstep loan the agent will ask you to catch up. There may be extra charges added if you miss payments, although some doorstep lenders don’t add any.
Sometimes you may know the agent personally. This can make it harder to explain if you can’t pay. But remember that your doorstep loan is the same as any other debt, and they don’t have any extra legal powers. The agent isn’t a bailiff, and they can’t come into your house or take anything from you. They can’t force you to pay money you don’t have.
If you don’t pay back the arrears you’ll get a default notice. By this stage, larger doorstep loan companies will usually deal with your loan from their head office and you may find the agent stops calling. This can make it easier to deal with the debt.
After the default notice, the doorstep lender can then take further action. For more information on what action a doorstep lender can take to collect a debt, read what your creditors can do.