When a customer has taken out a guarantor loans, the lender will usually send a repayment reminder on the days leading up to each collection. So if you are expecting collections on the 30th of the month, you may receive an email or text message 1,3 or 5 days leading up to that collection as a gentle reminder.
The payments are collected via a process called continuous payment authority. This is where your card is debited and the lender collects the amount owed each month automatically, allowing a smooth transition and no need for you to go to the bank, phone up or make a manual repayment. It is different to a direct debit because it is set up and cancelled by the lender – whereas a direct debit is set up and cancelled by you.
If you miss a repayment, you will automatically be sent an email as a follow-up. Guarantor lenders will understand that you may require up to 24 hours for your income to clear from work. If the loan repayment still remains outstanding, you may receive a follow up call or letters from the lender.
However, you have peace of mind knowing that you will not be harassed and only contacted a certain number of times as the lender must follow regulatory guidelines.