Cars & motorcycles
Loans & mortgages
Healthcare & pensions
Lenders may charge interest on loan arrears. According to the Consumer Credit Act, they may not charge more than the effective annual interest rate defined in the personal loan agreement.
Reminder fees are also charged, which differ from lender to lender.
Lenders are also obliged to report late payments to the IKO if they add up to 10% or more of the net loan amount. They also report payment habits to the ZEK. Entries such as “slow payment” or “in arrears” have an adverse and lasting effect on a person's credit standing.
Note: if you cannot pay your instalments and have to arrange a special repayment plan with the bank, this is also recorded in the ZEK database and has a negative effect on your credit standing. It can therefore be helpful to request an extension to your loan term and maybe even switch lenders in order to reduce the monthly instalment amount.
You can review the options for refinancing a loan at Comparis.
If the loan was taken out via a credit broker, you should seek advice from them before making a decision.