What happens if you don't pay the loan to the bank? How can you avoid liability?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Sometimes there are situations when a person applies for a loan in a financial institution and there are problems with its repayment. In this case, the question arises of what will happen if you do not pay the loan to the bank.

According to statistics, many clients who have decided not to pay the loan remain solvent citizens. Borrowers simply walk away from fulfilling their obligations. And there are numerous reasons for this. Some simply do not want to give their own savings, others are sure that the lender requires high interest, etc.

But it must be remembered: if a person "hangs" a loan, then he must definitely repay it. Although when he is not afraid of difficulties and dangers, you can continue to ignore the lender and find out what will happen if you do not pay the loan to the bank.

What is the default rate?

In any credit structure there is a concept of "default rate". In other words, the lender sets a fixed percentage that covers all the costs of the issued loan, whichthe borrower is required to repay. The minimum threshold for this indicator is 3% of the loan amount.

Still, you should not not pay the loan, as the lender does not want to part with his finances just like that. The organization will take all measures to repay it, and then the borrower will understand what will happen if you do not pay the loan to the bank. At first, an employee of a financial institution will act gently and call for a conversation. During it, he will announce the amount of the debt and find out the reason for the non-payment. In such a conversation, familiar phrases can be heard from the borrower: “I remember my loan, but now I can’t repay it, because there is nothing to pay the loan with.” What to do in this situation, so as not to bring the case to court? You can agree that within a few weeks the amount will be repaid, but you should not be impudent and ask for months to repay the debt. Some borrowers, thanks to these promises, can defer payment for a sufficiently long period. However, in a large bank, such a scheme of promises will not work, and you will have to pay on time.

What will happen if you do not pay the loan to the bank even after the promised time has expired?

In this case, banks resell debts to collection companies that knock them out of debtors. Their goal is to return the money at any cost, so they will begin to put pressure on the client by any legal means. Every day, employees will not only make cell phone calls, but also come home and demand repayment of debts. Do not hide, as debt collectors may start callingyour loved ones and threaten. They can be terrifying, saying that if you do not pay the loan, they will go to jail for a long time. Collectors will do everything to make you stop sleeping peacefully. They will take the case to court, and bailiffs will start visiting you. You can, of course, hide and not open the doors, but the truth is on their side, and you simply violated the terms of the contract and will have to be punished.

You can hide for three years and wait until the statute of limitations expires, but you will never be able to get a loan again.