Hooked on instant short-term loans?
- What does this mean for my credit report?
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Most likely, your credit information is still in order. However, now you should take swift action: contact the collection agency that sent the payment reminder and agree on making the payment.
The company that has offered the instant short-term loan can notify the credit information company of the credit line, which is over 60 days past due from the original due date. Recording a payment default entry requires that it has been stated in the credit agreement and that you have been sent a payment reminder a minimum of 21 days earlier. The reminder must mention the possibility of an entry being made in your credit report. Therefore, you should quickly initiate contact once you receive a letter of that nature.
- Can I make a payment plan?
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Yes, you can agree on paying a short-term loan off in multiple instalments. Do not prolong the issue unnecessarily. Instead, contact the collection agency and agree on paying it off!
If you have received a letter from Lindorff, please contact our customer service department. You can create a payment plan also online yourself using your banking access codes to log into the My Lindorff Internet service.
Read more about it in the section titled Payment plan.
- Will it ruin my credit if a liability or an instant short-term loan is submitted to a collection agency for collection?
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No it will not. Transferring the debt to a collection agency does not result in a payment default entry in the credit report.
The finance company, credit card company or short-term loan company that issued the credit line notifies the credit information registry of an unpaid credit line, if it is over 60 days past due and at least one payment reminder has been sent. Therefore, you should quickly initiate contact and agree on paying off the short-term loan, even in multiple instalments, if necessary.
- If an instant short-term loan is unpaid, will I first receive a letter from the collection agency or will I immediately get a payment default entry? Can an instant short-term loan company make an entry in my credit report prior to submitting the invoice to collections?
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No unpaid invoice or instant short-term loan will result in a payment default entry without you receiving a written payment reminder letter. Instant short-term loan companies, similar to other businesses that have issued consumer credit lines, can notify the credit information company of an unpaid credit balance that is over 60 days past due from the original due date.
Recording a payment default entry requires that you have been sent a payment reminder a minimum of 21 days earlier. The letter must state that the possibility of a payment default entry exists. Receiving the letter from the collection company depends on if the company issuing instant short-term loans uses the services of a collection company.
- I have multiple instant short-term loans for several different companies. How can I address the issue?
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If the loans have entered the collection phase, contact the collection agency without delay. This way, your overall situation can be assessed.
You can agree on a payment plan with Lindorff’s customer service department for all of your instant short-term loans being collected on by Lindorff at once. Read more about it in the section titled Payment plan.
You can also first review the situation of your debts by logging into the My Lindorff Internet service using your banking access codes. However, the Internet service does not show issues already in enforcement or older issues. Ask for a summary of all of your debts being handled by Lindorff and we will send it in writing to your home.
