In a difficult situation, when there is nothing to pay a loan to a bank, people often panic and take rash actions. As a result, the already difficult situation is only aggravated. Here are the most common mistakes that borrowers make.
Attempts to Escape from Lenders.
Refusal to answer the phone, providing false information about your location, and other ways to evade responsibility will never be crowned with success. First, representatives of a bank or a collection bureau will sooner or later find a debtor. Otherwise, they will demand the fulfillment of obligations from guarantors and co-borrowers, who are often relatives and family members. Secondly, the result of such behavior may be an increase in penalties. Not to mention the fact that life in constant fear is associated with tremendous nervous tension and, thus, damages the physical and mental health of the borrower and his family.
What to Expect from Collectors?
When a client does not pay a loan for a long time, the bank most often turns to collector services. The cession transactions (assignments of rights of claim) are legalized by the Civil Code. From the moment the debt is transferred, the borrower should no longer be a bank, but a collection organization. And for him there are several options for further developments.
- The first is the repayment of debt to collectors, the second is a litigation with all the ensuing consequences. Which of these options to prefer - the personal choice of each. But bringing the case to court can hardly be called a favorable prospect. The litigation is most likely to end in the debtor’s favor, so you still have to pay the loan. In addition, the filing of a lawsuit in court faces such consequences as: The seizure of property and its subsequent confiscation. Such an outcome is possible if the loan was provided on bail (for example, an apartment, car).
- Deduction from wages (up to 50% monthly until the loan is fully repaid. Arrest of accounts, including cards and deposits in other banks.
- Restriction of rights for a certain period. The debtor may be forbidden to go abroad, to engage in certain activities. In addition to these probable consequences, the litigation on the case of non-payment of the loan inevitably threatens a damaged reputation, poor credit history and problems with employment. Regarding cooperation with collectors on the pre-trial settlement of a dispute, it often brings benefits to the debtor, as it provides an opportunity to reduce the amount of payments.
Debt collection agencies offer various debt forgiveness schemes. In addition, customers willing to contact can be given discounts and bonuses. Proper use of all these features can significantly reduce financial losses. But, of course, before making any payments, you need to make sure that you are dealing with a serious and honest company operating under the law.