Punishment for non-payment of a loan in Ukraine – what could be the consequencesUncategorized
Before you take out a loan, we recommend that you carefully study and follow the terms of the agreement you agree to. Failure to comply can result in negative financial consequences and affect your credit history.
Information about delays or non-payment of loans provided by the Credit Bureau may further limit your chances of obtaining a loan at all financial institutions.
If the loan is overdue
And the bank begins to demand a debt repayment, it is important to know what the consequences may be, because, quite often, collectors are “frightened” by fictional rather than real consequences, so the problem is quite urgent.
If for any reason you missed a payment, you should understand that you are responsible for it. Payments must be made on a monthly basis and clearly paid within the agreed deadline. Make payments as you please – you can’t. This is a breach of a loan agreement. But, keep in mind that the consequences can be provided only by contract and law. Any other act that the lender’s employees try to blackmail is illegal. Possible sanctions:
- The fine is a fixed amount.
- Penalties are proportional changes in the amount of delay.
- Ban on receiving funds from the same bank in the future (usually credit lines on credit cards).
- Legal proceedings for the seizure and sale of property (together with the debtor and / or guarantor).
- Obtaining the ownership of a pledge bank.
Non-payment of the loan is a responsibility
All banks have penalties for late repayment of loans, and they are quite typical. In most cases, a small amount of consumer credit is subject to fines and penalties, mortgage loans include seizure and sale of property, and under secured contracts, a guarantee may be required. In the case of unpaid loans, bank actions not specified in the agreement cannot be considered legal. So if there was a transfer of debt data to collectors on their “empty” threats, you can not respond.
If you missed one payment, what penalty will you pay? Of course, the lender will not go to court because one payment is missed. Depending on the organization of the internal process: calls, letters, fines and penalties are usually expected. Of course, it is better not to delay payment without “destroying” credit history.
If the monthly payment is not paid on time
The consequences of non-payment of the loan may not extend to the debtors, who will be able to agree with the lender and find a solution, for example, in pre-trial proceedings. When a borrower pays for something (at the pre-trial stage, even if the payments are small but stable), it’s always easier and cheaper for the bank.
What can banks do?
All collection methods specified in the contract or provided for by applicable law are permitted. However, no loan repayment can end in sanctions. If you can negotiate with the borrower, you can avoid them.
At the pre-trial stage, the bank has the right to call, send text messages, letters and even come. There is also the right to contact 3 people (without disclosing bank secrecy) to inform clients that they need to contact the lender.