Drawing up a loan in a banking institution, not all people think about how they will pay it back, where they will get the money from. Unobjective estimation of your own material possibilities and sudden financial difficulties are the main reasons of arrears in payments and, as a result, big debts.
Of course, some borrowers in the case of deterioration of their financial situation immediately turn to a financial institution to refinance or restructure a problem loan. But not all banks meet the needs of borrowers in difficult situations. As a result, the bank debt continues to grow, and the borrower more and more often thinks about how to get rid of credit obligations.
How to refuse to repay a loan legally
If the Civil Code is to be believed, he has such an opportunity, if the three-year statute of limitations on the loan has expired.
Statute of Limitations is calculated from the date of first delinquency on the loan, not from the date of the loan agreement, as many borrowers think. But it is possible to avoid paying the credit and the arisen debt to the bank in a legal way only under one condition: if the creditors will not seek contact with the problem debtor. This is rare in banking practice. In fact, a few days after the non-payment of the next payment in repayment of the loan the borrowers begin to call the debtor, to send him sms-messages. If the borrower ignores the creditors’ persistent requests for timely repayment of the loan, after some time they will definitely send him a registered letter indicating the amount owed and the sanctions that can be applied to the debtor, if he does not return to the bank a certain amount of money on the specified day.
If the registered letter does not bring any results, the financial institution has the right to take the case to court or sell it to a collection agency.
How to refuse a loan repayment in a legal way
It is important to note that the limitation period terminates and begins to be calculated anew when the defaulter begins an official dialog with the bank institution: puts his signature on the receipt of the registered letter, makes a certain amount of money in payment of debts, himself comes to the bank office.
Many collection companies use the legal illiteracy of the majority of bank debtors to convince them that the statute of limitations ends the moment the problem debtor answers the phone or gets an e-mail from the creditor bank. Under the law, such methods of influencing the debtor are not a reason to end the statute of limitations period. But only experienced lawyers can prove it in court. They can prove that it wasn’t the debtor who spoke on the phone with the creditor and that the registered letter signed by the debtor wasn’t read by him.
In conclusion it must be said that litigation with the bank can go on for a very long time. It is not a fact that the borrower will be able to prove that he had no formal contact with the lenders during the entire period of limitation. And the loan debt will grow. In addition, legal assistance in a lawsuit will cost the borrower a lot of money. So he has to make a decision: either to prove his case to the end, or to look for ways to solve financial problems and repay the debt to the bank.
How to refuse a loan repayment in a legal way
If a person understands that he will have to apply to the financial institution more than once, then the first option is not acceptable to him. After all, the result of litigation with the bank will certainly ruin your credit history. In case the borrower will try to repay the credit by all means, the information about delinquencies and violations of contract terms will also appear in his credit file, but in fact the credit will be repaid. So, a person can count on at least the execution of a microloan at a huge interest rate.
