Arrears describes the state of an account when one or more payments that were due have not been made. If a scheduled collection on your Credicorp Flex or Slice facility does not succeed and the amount is not paid by another means, your account is said to be in arrears until it is brought up to date.
What it means in practice
- The overdue amount is owed in addition to your normal upcoming payments.
- Your account is treated as not up to date with us.
- Charges may apply as set out in your agreement, and the position can affect future borrowing decisions.
How to clear arrears
You clear arrears by paying the overdue amount — by bank transfer with your statement reference, by card where supported, or through an agreed arrangement with us. Once the account is back up to date it is no longer in arrears.
Related point
Because Credicorp lends only to companies and takes no personal guarantees from directors, arrears sit with the company rather than with directors personally. Even so, they are worth avoiding: contacting us before a payment fails is almost always better than letting an account fall into arrears. As an exempt business lender we are outside the FCA consumer-credit regime, so consumer protections such as the Financial Ombudsman Service do not apply.
See also: What happens if my company misses a payment?, What payment methods can my company use?, Settlement figure (glossary).