What happens if a member fails to repay a loan?

The committee sends a letter to the member asking them to come to the Credit Union to discuss the matter. It could be that member has become redundant, ill, etc, and finds it difficult to repay the loan. It is important to discuss the matter with the Credit Union who will try to be helpful in these situations. Where there is deliberate non-payment, the Credit Union on behalf of all the members will bring the defaulter before the courts. Court action can result in the member having to pay back the loan plus interest, the cost of the court fees, being placed on a blacklist that prevents the member obtaining credit or HP anywhere else, and being banned from joining another Credit Union. A loan not repaid affects all the members.