Cancellation of a loan agreement with a bank: what surprises can a borrower have
When can a contract with a bank be terminated?
A contract may be terminated on the initiative of one party or by mutual agreement. In this case, the parties enter into a new agreement in which other conditions and obligations are specified.
They can be mutually beneficial or beneficial only to one side. The order of termination may be peaceful or through the courts. In some cases, an automatic termination of the loan agreement is provided for, but this clause is immediately written in the document.
If the initiator is a borrower
The borrower may conclude that he no longer wants to make payments on the loan in this bank. The reasons may be different - they do not satisfy the terms of the contract, financial difficulties, actions of the bank, when, with exact observance of the payments, the bank charges unstated interest or interest on the debt.
Before you begin any action, you need to examine the contract and ask for clarification from the bank. Very often the problem is resolved peacefully. If it was not possible to arrive at a unanimous opinion and this is not a bank mistake or a clause in the contract that the client misunderstood, then you need to take action in order not to spoil your credit history.
Can I go to court and when?
You can go to court iftermination of the loan agreementpeacefully impossible. To do this, first a letter is drawn up with a proposal for termination. It should indicate the time when a written response should be received. The letter is brought to the bank and is given to be sure to be painted. Without painting in the receipt of the letter is invalid.
If after a certain number of days specified in the letter, the response from the bank has not been received,then 30 days after this period, you can file a claim in the court of the bank. The court determines whether there are grounds for the course of the case
What are the nuances worth knowing borrower
Borrowers should remember that sending the case to court, they do not receive the right not to pay money under the loan agreement. They were received by the borrower, and in any case the loaned money will have to be repaid in full.
The court may decide to reduce the amount of interest. Also, the borrower must be prepared that the termination of the creditof the contractthrough the court it may be associated with the payment of a penalty in favor of the bank, if this condition was specified in the contract. This is usually a small percentage.
If the initiator is a bank
If the borrower is a malicious defaulter or pays amounts smaller than specified in the contract and irregularly, the bank may decide to terminate it. As a rule, this clause on such rights of the bank is stipulated in the contract.
In this case, the entire amount of the debt is recovered either by the bank itself or by a collection agency. The latter option is much worse, since the working methods of collection agencies are not the most humane.
What other opportunities are there for the borrower?
It remains possible to negotiate with the bank in a pretrial order and try to reduce the monthly payments by extending the loan agreement. Especially if you have additional payments that you pay to the electronic service of the Purse or other systems.
It can be said that the pre-trial settlement of the conflict and its resolution by peaceful means is the most optimal way. In this casetermination of the loan agreementmay not be needed or will be bloodless and will satisfy both parties. Turning to the court, you must be sure of your rightness and abide by all clauses of the contract. Then the chance to win the trial will be high.
Video -Cancellation of the loan agreement
In this video, you will learn about the ultimate way out of the resulting credit debt, which you cannot pay even after restructuring. The procedure means a complete termination of obligations with the bank, stopping the growth of debt: