What happens if I miss a loan repayment?

If a customer misses a loan repayment, it may result in several consequences that can impact their financial situation. First, the lender may impose late fees, which adds to the total amount owed. It is also common for missed payments to be reported to credit bureaus, potentially lowering the customer's credit score. This decline in creditworthiness can make it more challenging to secure future loans or credit. Furthermore, if a customer continues to miss payments, the lender may take more serious actions, such as initiating collection procedures or even pursuing default on the loan. This process could eventually lead to legal action, which may result in wage garnishment or the seizure of assets, depending on the terms of the loan and local laws. It is advisable for individuals facing difficulties in making timely payments to communicate with their lender as soon as possible. Many lenders, including Servicemaster Acceptance Company, may offer options such as payment restructuring or deferment to help customers manage their repayment obligations. Customers can find relevant information regarding these options on the company's website. Always remember to review the specific terms of the loan agreement, as they outline the consequences of missed payments and the steps that may be taken by the lender.