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What is a Default?

When a Borrower signs a loan contract with LendingCrowd they are agreeing to various terms and conditions attached to the loan. The most significant term is that they meet their monthly loan repayment on time. If they fail to meet any of the contracted terms and conditions then they will be in default of the loan.


Late Payment

We will allow up to 4 days for the payment to be received after the due date before we treat it as a late payment and issue a late payment letter. This allows sufficient time for any delays that may have occurred in the banking system.


Course of Action

  • If the loan payment is not received on the due date we will contact the Borrower to establish the reason why. Often it could be something as simple as a bank error and we will give them time to make the payment.
  • We will monitor for the receipt of the payment, if it is not received further contact will be made.
  • If no payment is made within 4 days then we categorise this as a late repayment and issue a late payment letter.
  • A loan is marked as ‘In Arrears’ if the repayment is not received within 45 days.
  • We will allow a reasonable period of time to rectify the default prior to taking recovery action.



When the loan falls into default and there appears to be no clear indication of how and when the payment will be received recovery action will be taken. This will include reference to our Panel of Experts that includes solicitors, accountants and debt collectors who will provide guidance or act on our behalf, whichever is the most appropriate course of action.



As indicated in our Risk Warnings your capital is at risk when lending through LendingCrowd or any other peer-to-peer platform. While we will make every effort to recover as much capital as possible it should be remembered that you could incur a loss.



The Credit Team will send you updates on any potential defaults and actions carried out. At the same time they will maintain contact with the Borrower to obtain payment.


Treating Customers Fairly

Throughout any default or recovery process we will ensure that we treat our customers fairly which you can find more details on here.

If you invest through LendingCrowd you should understand that your capital is at risk.

LendingCrowd is the trading name of Edinburgh Alternative Finance Limited, Company Number SC468392, authorised and regulated by the Financial Conduct Authority (Firm reference number 670991). LendingCrowd and its products are not covered by the Financial Services Compensation Scheme.

Read more about the risk involved when investing and borrowing.

LendingCrowd is a credit broker and not a lender.

The company's registered office is 23 Manor Place, Edinburgh, EH3 7DX.

Copyright © LendingCrowd 2017. All rights reserved.

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