There should only be initial cost if your monthly debit order was unsuccessful as a result of insufficient funds or changing bank accounts without prior notice to the service provider. The service provider will try to contact the client in order to resolve the problem.

If the client can’t be found or the problem can’t be solved, it would be handed over to the internal collections department to see if a solution to the problem can be found. If an agreement can’t be reached, the lender can make use of an external collections company or an attorney.

This will lead to an increase in fees and interest. This will have a big influence on the clients credit score and it will be very difficult to get any more credit from any loan provider.

Monthly premiums for loan repayments will be done by direct debit order collection from the clients bank account. Unsuccessful debit order collections may result in the client being charged a fee by his own bank for the unsuccessful transaction.