What happens when a customer defaults on the loan?

Created by Chinwendu Nwazojie, Modified on Fri, 7 Feb at 2:52 PM by Chinwendu Nwazojie

Defaulting on loan payments can have several significant consequences, including:

  • Report to Credit Bureau: When a customer defaults, Veend may report this to a credit bureau, which can severely impact the customer's credit score. This could result in a lien being placed on the customer’s account, restricting their access to funds.

  • Limited Future Transactions: A report of default can hinder the customer's ability to obtain future loans or credit from the same company or other creditors due to the increased risk they now represent.

  • Damage to Relationships: Defaulting on a loan can damage the relationship between the customer and Veend, as well as with other financial institutions, making it more challenging to secure financial services in the future.

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