The limitation period for a bank loan for individuals

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37

The limitation period for a loan as a basic concept is considered in the current civil law. After its completion, financial institutions do not have the opportunity to force the debtor to pay the amounts due. The law establishes a certain time interval, but there is no wording on the beginning of this period. Therefore, various disputes often arise between the parties to the conflict on this issue. The time period during which a banking institution has the potential to recover amounts from individuals is called the limitation period for credit obligations. After the fixed date, banking institutions, under current law, can no longer demand a refund. It is this opportunity that various scammers use in the hope that they will be able to avoid payments on their obligations. However, is everything so simple? In the framework of this article, we will consider these issues in more detail.

What does the term statute of limitations mean?

When peopledraw up a loan, then, as a rule, they rarely think about the question of how long the limitation period for a loan is set under the agreement, and whether it exists at all. By law, such a period, of course, exists.

The statute of limitations for a loan is the period of time during which a banking institution can recover funds from a borrower through the judiciary. Three years are legally required from the date the last payment was made.

In 2018, the limitation period is calculated at a rate of 36 months. After it, any collection of the bank for the amount of credit debt after the expiration of the limitation period for the loan in judicial practice can be considered unreasonable.

When borrowing from a bank, you should be aware that any period can be reset to zero and start from the starting point during any contacts with a banking institution. However, the fact that a bank employee calls a customer is not sufficient to justify resetting the deadline, as it is not evidence of interaction until a record of such a conversation is provided.

How to calculate?

In order to calculate the limitation period for loans to individuals, you need to look at the Civil Code of the Russian Federation.

On this issue, the Civil Code of the Russian Federation in Art. 196 states that such a period is three years.

How to calculate the statute of limitations on a loan in order to accurately determine the starting point for the upcoming protection of interests. A banking institution at any time may apply to the judicial authorities. In this connection, payers must independently prove the fact that the partner missedterm. To this end, you must:

• write a statement demanding that your personal data be removed from the banking system;
• make an application to the court for the suspension of questions on the return of the amount of debt after three years.

There are three options for taking into account the limitation period for collecting a loan by a bank in legal practice:

1. After the return of the last installment has occurred, when the relationship with the financial institution is coming to an end. For example, this situation applies to credit cards with an open-ended contract;
2. From the end of the lending period, when the loan document expires;
3. From the moment the financial institution receives claims to pay the debt ahead of schedule. This is possible already 90 days after the start of the delay.

When hearing a case, the judiciary chooses any of the options described. However, the practice of rulings is different. The interpretation of the law is subject to change. However, it should be noted that the moment of applying for a loan is not a starting point.

After the court has passed, the defaulter is obliged to pay the “loan body”, pen alties, interest and organizational expenses of the plaintiff. After the trial, the case is handled by bailiffs, who put the received enforcement proceedings into practice for 2 months. But the recovery time is regulated by three years.

Consideration of the issue of recovery may be suspended if the payer is not found. However, for another six months after the establishment of this fact, the bank may start the process again. There is a practice of debt collectioneven after 5 and 10 years.

Example

Borrower Ivanov A. A. took a loan in the amount of 100,000 rubles for 12 months on February 24, 2019. On the 24th of each month, he must make a payment. During the first three months until May 24 inclusive, Ivanov A. A. paid the loan. On June 24, on the next payment date, the amount was not paid. From this moment, the creditor is aware of the delay, the limitation period begins.

A month later, the next payment is also added to the amount of the debt, taking into account the late fee. It is in the amount of this amount that the three-year limitation period begins to be calculated from July 24, 2019. More clearly, the calculations are presented in the table.

Calculation of the limitation period for a Russian loan

Indicator	Date	Start of limitation period	Expiration date
Start of contract	24.02.2019	-	-
Payment completed	24.03.2019	-	-
Payment completed	24.04.2019	-	-
Payment completed	24.05.2019	-	-
Expired	24.06.2019	25.06.2019	25.06.2022
Expired	24.07.2019	25.07.2019	25.07.2022
Expired	24.08.2019	25.08.2019	25.08.2022
Expired	24.09.2015	25.09.2019	25.09.2022
Expired	24.10.2015	25.10.2019	25.10.2022
Expired	24.11.2015	25.11.2019	25.11.2022
Expired	24.12.2015	25.12.2019	25.12.2022
Expired	24.01.2016	25.01.2020	25.01.2023
End of contract	24.02.2016	25.02.2020	25.02.2023

Term regarding lending to individuals

When creating loan documents, the bank issues funds to the client, which must be returned within a certain period. The obligation to return funds rests with the citizen before the date of completion of the signed document. When considering the limitation period for a loan, judicial practiceprovides for the satisfaction of the conditions of banks and institutions after the presentation of competent proven facts. Judges at different levels have different ideas about the starting point of the statute of limitations. There are no definite solutions. Most lawyers interpret laws in their own way.

St. 196 of the Civil Code of the Russian Federation establishes that for 3 calendar years the bank may present its claims for repayment of the loan. The date from which the limitation period under the loan agreement begins to be calculated is not regulated. Art. 200 of the Civil Code of the Russian Federation reflects that this date must be counted on the day when the credit company found out about the suspension of payments. Loan documents contain a payment calendar, which correctly indicates the number of all months when funds are transferred to the account to pay off the debt. In the event of a delay in payment, bank employees will immediately learn about this fact. On this day, the 3-year countdown will begin. Curiously, the statute of limitations for a bank loan is taken into account for each missed payment.

Example. 2018-20-01 Mikhailov A. A. issued a loan for 15,000 rubles for a period of 6 months. Every 20th day of the month, you need to return funds to a banking organization. Two months before April 20, Mikhailov A. A. made all payments. On May 20, a debt was formed due to non-payment. The countdown starts. After another 30 days, the amount of the debtor for the next payment and pen alties for skipping the commission will be added to the next installment. The maximum term is calculated from May 20, 2018

It happens that the limitation period for a bank loan has expired, but the debtor has difficulties: collectorscontinue to demand payment. In accordance with Federal Law No. 230, an employee of a collection bureau does not have the right to visit a defaulter more than once a week. The number of calls is limited: up to 1 call per day, up to 2 calls per week, up to 8 calls per month. Communication is not allowed during the time from 22.00 to 8.00 on weekdays, from 20.00 to 9.00 on weekends and holidays.

Collectors do not have the right to: pose a threat to the he alth and life of people, psychological pressure, give incorrect information. It is forbidden to transfer any personal data to third parties. To confirm illegal acts with prepared confirmations, you must immediately go to the court and the prosecutor's office. It is important to have the following evidence:

• recording phone conversations;
• testimony of neighbors about the appearance of collectors in the apartment;
• recordings from video cameras if "attacks" occur during work.

The base of debtors is growing every day, and collectors are actively trying to capitalize on this trend. It is possible to exclude personal communications with collectors and creditors if you send a signed waiver. This is done through a notary public or registered letter, as well as through personal delivery with a signature.

As long as the limitation period for a bank loan has not expired, the loan must be repaid. The debt will continue to increase, starting from the clauses of the loan agreement.

Statute of limitations for a claim against a surety

If a person has entered into a guarantee agreement forIf a relative, friend or other person has taken on a loan, and this person has stopped repaying the loan, bank representatives will contact the guarantor, offering to pay the debt. The guarantee is valid until the time it is provided under the contract. This limitation period for a bank loan is indicated in the surety agreement. If a specific date is not specified, the guarantee is valid for the next year after the completion of the loan agreement. If during this period the bank does not submit an application to the court, the guarantee is terminated. Here it must be taken into account that this term is exclusive, in other words, the obligation itself is terminated: it cannot be restored, interrupted or recalculated. Even if the bank submits an application to the guarantor more than a year after the end of the loan contract or after the expiration of the period indicated in the surety agreement, it is necessary to report the end of the obligation, with reference to paragraph 6 of Article 367 of the Civil Code of the Russian Federation.

Limitation period against a deceased borrower

The situation depends on the terms of the guarantee contract. There are two aspects:

1. If there is a clause in the contract that the guarantor agrees to bear the blame for him in the event of the death of the debtor, then the guarantee does not end. Further, after the establishment of the successor (heir of the deceased debtor), the guarantor does not cease to be liable under the agreement, but for another person.
2. If there are no clauses in the contract thatthe guarantor bears the blame for the new debtor, after the transfer of the debt to another person (the heir of the deceased), the guarantee ends. In a situation where the debtor died, this fact does not affect the guarantee period. It is valid until the time indicated in the agreement or next year after the completion of the loan contract.

Credit card statute of limitations

The same terms apply to a credit card as under a regular loan agreement, that is, 3 years. Credit card bank agreements usually do not have a payment schedule. But the terms of the contract stipulate that the debt must be repaid in installments. If the next payment is not made, the bank will find out about this (it will become clear to him about the violation of the right). From the day of delay and restriction of activities, the period begins to expire.

Term termination options

It is possible to interrupt the limitation period, it will be necessary to count 3 years again: in this case, the bank will have an advantage. This will happen if the borrower:

• write an application to extend the loan or defer payments;
• will sign a restructuring agreement, that is, a revision of the terms of the loan agreement, in which payments will become smaller and the term will be longer;
• receives a letter from the bank demanding repayment of the debt and writes an answer that he does not agree with the debt;
• other acts indicating acceptance of the fact of debt.

Instances of term extension

In 2019 requirementsThe laws remain the same as before. The financial institution can claim payment from the borrower in court if there are no transfers. Ignoring payments can be recognized as fraud in accordance with Article 159 of the Criminal Code of the Russian Federation. In paper form, it is useful to warn the lender about the difficulties with the return of payments. Fraud is not recognized in three ways:

• several cash payments have been credited;
• according to the contract, the property is indicated as collateral;
• debt less than 1.5 million rubles

Court proceedings are not only lengthy, but can also ruin a borrower's credit history. In addition, in the absence of specificity in the description of the law, the court interprets its provisions in different ways. In such cases, the period may be extended:

1. The Bank transfers responsibility for the return of the legal amount to the collection bureau. The starting point of the period will be the date of the last registered contact of a company employee with a non-payer.
2. The borrower did not return the spent limit on a credit card or other financial service, communicating with representatives by phone, answering by e-mail. With a good evidence base of the bank, the restriction will be established from the date of the last message.
3. The borrower supplemented the contract with a statement of restructuring or deferred payment on the loan. The starting point is the moment of signing the documents or the end date of the financial "holiday".

There is no point in waiting a couple of years without payments to the debtor. The financial institution specifically postponesthe beginning of the period so that the 3-year period never ends.

How to avoid paying?

In accordance with art. 199 part I of the Civil Code of the Russian Federation, even after 3 years, a financial company can submit an application demanding payment of debt based on objective reasons:

• both sides came to a peaceful solution;
• one side in the confrontation worked in service and took part in hostilities;
• at the time of filing a claim, the provisions that are specified in the law are not regulated.

The justice authorities consider such appeals and often take the side of the plaintiff. There are only three options when the debtor can refuse payments by a legal method. The conditions are unrealistic, but it also happens:

• payer does not talk to bank representatives, ignores their messages;
• the company that issued the loan forgot about the amount of the debt.

The term ends when the payer has signed any official loan document, confirmed his debt, or made at least a small payment in favor of a financial company.

If the deadline has passed, will the bank write off the debts?

Probable options for the expiration of the limitation period on the loan:

• shouldn't hope that the bank won't meet the deadline and "the loan will burn";
• the bank may apply to the courts even after the deadline;
• if the bank does not go to court, then it transfers the right of claim (this is called an assignment agreement) to collectors. And they will start with zealcollect debts, call relatives, work, arrange various dirty tricks, threaten and blackmail.

There were cases when debt collectors sealed the doors of debtors with glue, painted the walls of the entrance.

Fortunately, on January 1, 2017, the law on protecting the rights of the Russian population from such collection agencies and microfinance companies came into force, which is designed to protect debtors from such actions. However, collectors still have moral pressure tools.

Option when, after the expiration of the limitation period, the bank sues the borrower

Consider the state of affairs if the statute of limitations on the loan has passed.

According to the law, the bank can apply even after the statute of limitations has expired. Therefore, one should not be surprised if, after a 3-year period, the borrower receives a summons again.

The bottom line is that the judges themselves do not specify the statute of limitations until the defendant declares this (Article 199 of the Civil Code of the Russian Federation). It is the duty of the borrower to protect his own interests. All that needs to be done for him is to inform the court during the consideration of the case in court that he requires the application of Art. 199 of the Civil Code (application of the limitation period for a loan). After this appeal, the court will refuse the bank's claim.

After the court dismisses the bank's claim, the bank will not write off the funds, even if the borrower receives wages on the card in this bank, and will not take the property left as collateral for this loan. The client may announceexpiration of the statute of limitations, not only during the consideration of the case in court, but also by other methods:

• write a written statement (appeal) and submit it to the court;
• make a petition to the court with proof of receipt;
• apply to the office.

Petition for application of time limit

When examining the issues of the limitation period for a loan, the sample application must be filled out correctly. The defendant must declare the overdue limitation period itself through an appropriate appeal (petition). This appeal is completed after the expiration of the limitation period for the loan. The application is a tool that allows the debtor to protect his rights when considering applications for debts presented to him. The Civil Code of the Russian Federation provides for the writing of this petition on behalf of a person who has a debt.

An example of an application for the application of the limitation period for loans to individuals is shown in the figure below.

When presenting arguments, one must be guided by Art. 152 of the Civil Code of the Russian Federation. The main point of this statement is the part after the word "Please." It must specify what exactly the borrower requires. It is necessary to sign the date and prepare copies for all persons who participate in the trial.

Conclusion

As part of this article, the question of what limitation period for a loan exists in modern legislation was considered. The statute of limitations for a loan, defined by law in 2018 as a 3-year period, is the time after which the debtorfiling an application in court has the right to provide an appropriate petition and avoid the return of loan debts under the statute of limitations.

But the expiration of the statement does not guarantee the bank's refusal to receive its funds - there are a huge number of ways to collect debts from individuals, as well as involving collectors, which can be very sad for the debtor.

Whatever method the bank chooses to repay the debt - a court decision or other methods, it will be unprofitable for the borrower to execute it. Therefore, the client must first think: it is worth avoiding contact with the bank throughout the entire term of the loan restriction, or immediately, when it is not possible to close the debt, tell the financial institution about it and find a solution together.