By borrowing money from a loan company, you will have a maximum of 61 days (InCredit, Money Man) for their return. If you do not pay back the loan on time, the lender will have the right to start the recovery procedure and charge you with additional costs. Today we will tell you what consequences you should take into account, delaying the return of a quick loan.
Just a few months ago, before the anti-usury act came into force, the costs associated with late repayment of liabilities could have been really high.
Delaying the return of a quick loan
It was not uncommon for the monthly cost of reminders, i.e. reminders of debt and the need to pay back a loan, to be as much as 40% of the payday amount.
People who wanted to “buy some time” to be able to generate the amount needed for repayment could continually extend the cash return period. Of course, you pay dearly for it.
What is the situation today?
Pursuant to the new law, the maximum fees resulting from late repayment of loans are currently equivalent to 6 times the NBP lombard rate, i.e. 15% per annum.
This means that in the case of a loan in the amount of USD 1,000, one day of delay in repayment will cost you USD 0.41, 15 days – USD 6.16, and 30 days – USD 12.33.
Admittedly, compared to the amounts of prompts before the introduction of the new law, they are proverbial pennies.
Not just the financial consequences
If, despite reminders, the borrower still does not repay his debt, the lender will be able to refer the case to an external debt collection company or take legal action.
Considering the fact that loan companies have stopped earning money from latecomers, they do it much more willingly and faster than just a few months ago.
A good example is the Pandamoney company. In the loan agreement concluded with this lender we can read:
“Failure to reimburse the total loan amount together with interest and additional costs on time may result in the Borrower’s debt obligations being transferred to a debt collection agency or legal action against the Borrower after 7 days from the first unsuccessful request for payment received by the Borrower.”
Therefore, the case may be transferred to an external debt collector faster than it may seem.
External debt collection and what next?
If the case is transferred to an external debt collection company, we will also have to cover debt collection costs in addition to the loan amount and any additional fees.
If the case goes to court, the next stage may be the bailiff’s seizure of remuneration and even property.
Entry in the register of debtors
If the delay in repayment lasts more than 60 days, the lender has the right to put the debtor’s data in the register of debtors – National Debt Register, ERIF Register of Debtors or BIGInfo Monitor.
The amount of debt should be at least USD 200 (already with interest).
Importantly, the lender is obliged to inform the debtor of his intention to enter his data in the register of debtors. He should do so by sending a registered letter, at least 30 days before entering.
Entry in the debtors database can make it more difficult for you to do such simple things as signing a contract with an internet or mobile operator.
Information in the Credit Information Bureau
Another consequence of late repayment may be the transfer of information on debt to the Credit Information Bureau. Such information will worsen the borrower’s credit history and significantly reduce its rating in BIK.
If the borrower repays his debt, the creditor’s obligation will be to inform the registers of the debtors. This information will cause the late client’s data to be removed from them.
In the case of BIK, however, the case does not look so good.
A negative credit history can follow you for up to five years, making it much more difficult to borrow more.