Nobody enters into a finance deal with the intention of missing payments. Nevertheless, it’s impossible to know what’s around the corner and mistakes are made from time to time.
It’s no different with DJ finance – flexible repayment solutions for buying DJ equipment and accessories. From time to time, responsible and irresponsible borrowers alike find themselves falling behind on their payments.
For some, it’s a case of carelessness and distraction resulting in the occasional missed payment purely by accident. For others, financial difficulties render them unable to meet their repayment obligations.
But what exactly happens when you miss one or more payments on a DJ finance agreement? Assuming you’ve already taken possession of the DJ equipment and made some payments, how do things work if you fall into arrears?
All DJ finance providers handle missed payments in accordance with their own unique policies, though the following will apply in most instances:
Initial Reminder
Depending on the DJ finance provider, a single missed payment may initially result in nothing more than a reminder being issued. This reminder will usually indicate the deadline for the outstanding payment to be made, before which there will be no additional consequences or fees payable. An initial reminder will usually only be issued once – any subsequent missed payments may not be treated with such lenience.
Late Fees
Policies vary, but late fees are almost always payable when payments are missed. These late fees could be charged in the form of a set cost (say £50 for every missed payment), or a percentage charge on the outstanding amount. More often than not, late fees increase significantly for every week/month the payments remain outstanding.
Final Warning
If the customer misses a repayment and fails to respond to the initial reminder, they may be issued a final warning. A final warning may also be issued in cases where customers miss multiple payments within any given period, irrespective of whether or not their arrears were subsequently cleared. This final warning will notify the customer that if they fail to meet their repayment obligations again, the contract will be terminated, and all outstanding monies will be demanded.
Contract Termination
In the event that the contract is terminated, the service provider may demand the return of all the DJ equipment purchased and/or payment of all outstanding monies. The customer will be given a certain amount of time to comply with the provider’s instructions, or risk initiation of court proceedings. The longer the saga plays out, the more costly it becomes for the customer.
Credit Report Damage
Irrespective of how serious the issue becomes, it’s important to remember that missing just a single payment on any finance agreement could damage your credit score. The more payments you miss, the greater the damage done. Given how it can take several years to repair even moderate credit score damage, it simply makes sense to prevent it from happening in the first place.
Act Early…
Across the board, lenders and DJ finance service providers would prefer not to have to take any of the above action. It’s far better for financers and customers alike to reach mutually beneficial agreements and keep things simple.
This is why it is of the utmost importance to contact your lender or service provider immediately, if you even suspect you may encounter repayment difficulties in the future. Rather than missing payments and suffering the consequences, it’s far better to let them know you’re struggling and come to some sort of agreement.
This way, you could at least reduce the risk of losing your equipment, damaging your credit score and being taken to court.
*We appreciate the contribution of our partners for sharing this post. As always, the views presented here are not necessarily those of Ear to the Ground Music or its editors.
