Advertising banners with glossy advertisements of credit companies and banking organizations can be found almost everywhere today. Everyone says it's very easy to borrow money with virtually no interest. But, is it always like this and what is behind this eye-catching ad?
When it's time to pay off the debt, many people try to find legal ways to not repay the loan. First of all, this is due to the fact that for some reason a person cannot fully cover his needs financially. We all think: “If I don't repay the loans, I could face threats from debt collectors or even jail time." But that's it?
few people know this the law is almost always on the borrower's side. Banks take advantage of the fact that people are not very competent in this area and start putting pressure on those who borrow money. The borrower does not assume any criminal liability for late payment of his loan. The lender, issuing money, pre-calculates all possible risks.
This suggests that late payment of debts is a perfectly legal process that must be legally justified. If you can justify your insolvency, this will be the reason for the legal cancellation of the credit debt and will relieve you of this burden.
Peculiarities of the work of banks – loan payments
It's very easy to get into debt today. For this, it is not necessary to go through a long bureaucratic process, but simply fill out an application, make a simple online registration and receive the money on the bank card.
But when borrowing money from a banking organization, we may face hidden interest and other non-transparent conditions. To avoid this, you must carefully read the Agreement, which is entered into with the finance company. You should only apply for a loan at a bank where you meet all the conditions. If you notice any “trap”, it is better to refuse to cooperate with this company.
All credit companies establish that the online loan must be paid in full. But, as practice shows, this is not always the case. If the debt is not paid, the MFI tries to use all legal and illegal ways to repay the loan money. If you say: “I can't pay the loan”, the operator resorts to the help of collectors, who most often act through aggression, threats, calls, visits to the borrower and other illegal methods. In addition, it is important to remember that the use of collection companies is completely legal, although threats or excessive zeal to receive money are no longer in compliance with the law.
What will happen if you don't repay the loan?
Failing to pay off loans online is quite risky. However, the borrower does not always have the opportunity to pay interest and most of the loan on time.
If an overdue debt is filed for you, regular calls from the bank will begin with a request for a mandatory monthly payment. If you don't make the transfer on time, the bank will start calculating an interest penalty, which will increase according to the default period.… Often, the amount of interest is many times the value of the loan itself.
In addition, the procedure can have two consequences: the financial institution will resort to the services of debt collectors who will “cancel” the debt, the second option is the filing of lawsuits. But, as practice shows, most often the case does not reach the court, since the bank simply has nothing to do with litigation. The cost and costs of testing will be much better than the value of any loan. Also, the bank or MFI expects the borrower to pay the money back. The borrower receives a loan restructuring or vacation offer.
To which bank can you not repay a loan? – a question that has no answer. Each lending institution has its own terms and conditions, which should be familiarized with in advance. Some organizations try to act in the best interest of their customers, while others, on the contrary, try to get their money. Most assessments boil down to the fact that, in any case, a bank is a company that never loses. So in essence you need to understand that it is better for all companies to pay off debts and only in extreme cases to use restructuring services.
TOP ways to avoid credit
How to get a loan and not pay it?
There are several main ways, but most of the time, you need to be prepared for the fact that you will have to return at least part of the money. If it is possible to pay a small amount, stipulate this and go to a dialogue with the bank. Sometimes, in a really difficult financial situation (death of a loved one, layoffs at work or illness), banks may lend part or all of the loan amount, if it is small. In this case, you need to agree with the bank, fulfill the basic conditions, and then you will receive a document stating that there are no claims against the debtor.
There is another option – take a defensive stance. An experienced lawyer can challenge in court the legality of accumulating late fees or an excessive amount of interest (according to law, additional payments cannot exceed 50% of the loan amount). But it will be very difficult and it can also require a lot of money and time. In addition, if we are talking about a large amount, the bank, as a result, will be able through the court to force you to return, if not the entire debt, then at least the money you initially took.
Other options on how to legally get rid of the loan:
- An individual entrepreneur can declare himself bankrupt. All your assets will be sold at auction to cover the debt. If you do not have any movable or immovable property, the bank will release you from the loan repayment.
- Recognition of the loan agreement as invalid. This can be done legally due to certain circumstances (drop in national exchange rate and so on).
- If you have a loan in a foreign currency, the law allows you to invalidate that loan, as the only legal means of carrying out payment transactions is the national currency.
Non-repayment of a loan is a very serious issue. Whichever method you choose, you must comply with the law under the guidance of an experienced attorney.
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