Does the bank account warn of default before the first missed repayment?

81%Public bank data

Overdraft fees before missed repayments

of loans showing overdraft or penalty fees defaulted, against 7.3% of the rest

What was observed

Of 84 loans that missed a repayment, 33% had been overdrawn or charged penalty interest beforehand.

What a generic approach says

Wait for the first missed repayment.

What the engine read

Loans showing the fees defaulted 81% of the time, against 7.3% for the rest, and the flag caught all 3 defaults that never missed a repayment first.

What it meant for the decision

Fees in the account are an early sign worth watching. The numbers are small: this shows the mechanism, not a production signal.

Figures are reproduced from Luminnovate's research records. Data sources are available on request; methods are proprietary.