When will the loan company give you a payday loan?

When taking a payday loan, you are certainly not wondering in what situations the loan company can terminate your contract. However, it is good to have such knowledge, because the loan can be terminated not only when you have arrears.

The non-bank loans market is worth over $ 5 billion. It should not be surprising then that from year to year there are more and more companies that tempt with attractive terms of making such a commitment. As a person interested in applying for a payday payday, you must know that any company operating on the market with which you will sign a loan agreement, you can terminate it, although it must have a reason for doing so. What are the main reasons for this? What if the termination is already a fact?

Each party has its own responsibilities

Each party has its own responsibilities

By signing a loan agreement, you have both rights and obligations. Your basic right is to receive the amount shown in the contract and you must pay the liability on time. If you fail to comply with this obligation, then the non-bank company will have the right to terminate your payday pay.

Depending on the policy of the company with which you signed the contract, the contract will be terminated after e.g. 30 days from the day on which you should make the payment. The situation is different when you have signed a long-term loan agreement, e.g. for 24 months. Then the lack of settlement, e.g. 3 installments, may lead to the lender terminating your contract by demanding immediate repayment of the debt on your account.

Prompt (s) before terminating the contract

Prompt (s) before terminating the contract

You must know that termination of the loan agreement for both banks and non-banking companies is the last resort. In practice, this means that before the notice is given, the lender will prompt you. You can receive reminders not only in writing. If you have provided a contact phone number when submitting a loan application, then the loan company employees can contact you by phone to find out what the delay in payment results from.

It is very possible that if you are the first to contact a non-bank company, indicating that you have temporary problems with payment, then during the interview you will set a new loan repayment date. So you will gain time, because you will receive at least a few days to raise funds and protect your credit history from negative entries.

Misleading a non-bank company? Also expect to terminate the contract

Misleading a non-bank company? Also expect to terminate the contract

Most non-bank companies do not require their clients to provide a salary certificate. However, there are those in which when applying for a loan, you must indicate, among others employer’s name. If you provide false data, the consequence may be termination of the contract. You must be aware that employees of non-bank companies randomly check the information provided in the application already at the stage of its examination.

In a situation where you have provided a fictitious place of employment in the application and you have not repaid the loan you received, you need to prepare for a lot of trouble. Why? Because disclosing a fraud, a non-banking company may direct a request for prosecution and punishment to the appropriate authorities in connection with, e.g.

Non-bank loan for a long period and reduction of creditworthiness during its repayment

Non-bank loan for a long period and reduction of creditworthiness during its repayment

Non-bank companies that offer loans for a long period, e.g. 12 or 24 months, usually carefully check the potential borrower before issuing a decision. If at the time of obtaining the loan you had a good job and could freely settle your obligations to a non-bank company, and then your situation changed, then you must be aware that the company may also terminate the contract.

In practice, this situation occurs relatively rarely. As a responsible borrower, you will certainly seek to reach an agreement with the lender’s representatives regarding the subsequent repayment of the liability. It may turn out that it is possible to change the payment dates or extend the repayment period, which will translate into a lower installment of the loan. There are many solutions – it’s good that you check before choosing which one will be the best for you, i.e. the cheapest.

Termination and … what next?

Termination and ... what next?

You must remember that the termination of the loan agreement is always the last resort. Banks use this option, e.g. when the borrower avoids contact or has not repaid the liability on time. If you have a problem with the payment of subsequent installments (in the case of a loan granted for a longer period, e.g. a year), you should contact the employees of the loan company as soon as possible. Only in this way can you and the borrower work out a solution that will allow you to keep a good credit history and avoid the termination of the contract.

If the contract has been terminated, the non-banking company has the right to pursue its claims in court, and in the event that you still fail to comply with the obligation, also apply to the court bailiff. Remember that such actions will increase the amount you have to give back.

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