Delinquency

The condition of being behind on payments is referred to as delinquent. A person who is delinquent is one who has not paid their debts, including loans, credit card bills, and bond payments. This indicates that a borrower is not timely making payments to settle their debts. Individuals or businesses can be delinquent entities. In the event that the arrears are not paid on time, financial delinquency frequently results in default.

Delinquency also refers to a financial professional’s neglect or dereliction of duty. For instance, a registered investment advisor may be deemed in breach of his fiduciary obligations if he advises a cautious, income-focused client to invest in a highly speculative stock. It may be termed late if an insurance provider fails to notify a universal life policyholder that their policy is at risk of expiring owing to insufficient premium payments.