1. A loan will be deemed delinquent at the end of the 15th day past the due date and, at that time, any applicable fees will be imposed.
2. If a loan is 15 or more days in arrears, the first notice will be sent as a reminder. If payment is not received or contact made within 30 days of the payment due date, the available shares, up to the amount due on the loan including fees, will be transferred to the loan.
The amount transferred from the shares account will not exceed the amount the loan is in arrears, including fees.
3. If a loan is 30 or more days in arrears, a second notice will be sent. If payment is not received or contact made within 45 days of the payment due date, the available shares, up to the amount due on the loan including fees, will be transferred to the loan.
4. If a loan is 45 or more days in arrears, a third notice will be sent from the Delinquent Loan Officer regarding the delinquency. A warning will be made that the account may be turned over for collection and/or collateral may be repossessed if arrangements are not made to resolve the past due amount. If there is a share draft account with a debit card, all debit card privileges will be revoked.
5. When the loan has become 60 or more days in arrears, a FINAL NOTICE will be sent from the Delinquent Loan Officer. When the loan has become 90 or more days in arrears, a request for authorization to Charge Off the remaining balance will be presented to the Board of Directors, and the Credit Union will be forced to turn the loan over to the Credit Bureau and/or repossess the collateral securing the loan. If there is a share draft account, it will be closed immediately, suspending all privileges.
In the Final Notice, an offer will be made whereas the member must agree to pay at least 75% of the original payment. If consistent payments have been made in a three-month period, the loan may be modified to bring it current. A Subsequent Action Form must be signed outlining the terms. The interest rate will remain the same, however, the term of the loan may be extended no more than an additional six months. This arrangement will only be made one time. If at any time, the member defaults on this arrangement, the loan will be turned over for collection and/or collateral will be repossessed.
6. If there is a Co-Signer or Guarantor on the loan, they are sent the same notices as above. On the Final Notice, the Credit Union will inform the Co-Signer they are now liable for the payments.