The missed payments table displays information about payments that are not being made in accordance with the credit agreement. They are not considered sufficiently in arrears to be judged a default.

Policy Rule REF08 operates based on the information in this table. Please note that the rule will only be deployed if the credit account is currently in arrears. If the applicant has brought their account up to date since falling into arrears, they will not be referred for this reason.

The table gives an indication as to whether the applicant’s situation is worsening or whether they are getting back on top of payments. This can be the difference between a decline and accept.

Missed payments are referred to as ‘delinquencies’. A delinquency is any payment that is due but has not been made. They are categorised as ‘early delinquency’ (up to two missed payments) and ‘sustained delinquency’ (3 or more missed payments).

Note: there can be a 7 - 28 day ‘grace period’ before any missed payments are recorded (typically this is 14 days). This usually gives a borrower two weeks to get an account in order before the missed payment is reported. In these cases you might not always see a direct correlation between the number of missed payments and the delinquency date.

In the first column the date displayed. This is the date the account first missed a payment and became delinquent. This is when a creditor will have put a delinquency flag on the account.

This delinquency flag should be added as soon as the account missed one payment. However, the flag could be added later when there's more than one missed payment.
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For example, the borrower has been on a payment holiday and the creditor agreed not to record a missed payment to help them get back on track. However the borrower subsequently failed to keep to that agreement and so the flag was entered when there was more than one missed payment.
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The debt respite scheme (breathing space) was in operation and the lender has decided not to report arrears during that period. However this is normally for a maximum of 60 days.

Type refers to the kind of account. Hovering the mouse over the initials reveals the type of account. These are also listed here.

Delinquent balance is the total balance at the point the first repayment was missed.

Balance is the current balance of the account. If it is the same as the delinquent balance, no attempt has been made to repay. If the balance is less, payments are being made.

If the amount has increased, interest is still accruing on the debt or charges are being applied to the account. This is more likely for early delinquency and late delinquency on a mortgage.

Status provides a description of the type of flag that has been appended to the account by a lender. Hovering the mouse over the initials reveals the status in full and this is provided in the table below. BB, for example, means sustained delinquency.

There is no mandatory requirement for a lender to include a status other than Debt Management Plan.

Regular payment is the amount that was due under the agreement. This may be an important consideration for any assessment of affordability. If the account is in sustained delinquency, the applicant is likely to be struggling to make the regular payment. Can they afford the loan they have applied for?

Missed is the number of consecutive monthly payments that have been missed. Therefore 1 indicates one missed payment and 5 indicates five consecutive missed payments. These are normally consecutive. However there have been, for example, five missed payments and they're not necessarily be consecutive, but the totality is five. For example an applicant may have missed three payments in a row (status 3), made the next payment (status 3 remains) and then missed two further payments.

This is a mandatory requirement for reporting, however there are some smaller creditors that report defaults only and so the number of missed payments will be blank. A default only reporting creditor can only see defaults and not missed payments.

This will peak at 6. Six consecutive missed payments is the point at which an account is considered to be in default. In the example above, the Home Credit and Residential Mortgage accounts are likely to leave the missed payments table and find their way into the defaults table. This is not done automatically, a lender must report a default.

The table enables a Loans Officer to identify when a member is making an effort to repay a loan. In other words, a refer on missed payments could be turned to an accept, because – overall – the applicant’s situation is improving.

In the example above:

In the example above:

Note: these accounts will only leave the missed payments table if the account is paid off.

In the example above:

Only accounts with a current balance and a delinquency date appear in the missed payments table.

You can identify a missed payment in the past which has since been rectified by looking at 'worst status' in the dashboard. In almost all cases if the missed payments table is empty and a worst status is showing; that account has been repaid in full.

This may also be considered a 'good missed payment'. The applicant was missing payments but has cleared the arrears.

In the example above, there has been a missed payment (with status 1) in the last 12 months, but the accounts are back on track.

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