What is the limitation period for loans and payday loans?
The non-bank loan expires after the repayment deadline specified in the contract and the statutory deadline. According to art. 117 of the Civil Code, all property claims expire after a specified period. Once this date has passed, the debtor may refuse to pay the liability without any consequences. This does not mean that the debt will disappear, but that the debtor is no longer obliged to pay it. Read http://mepec.net/bankruptcy-save-the-particular-union-but-may-well-avoid-first/ for a critique
How does it look in practice? The limitation period applies when the company that granted it does not request a refund in time. Then the debtor may refuse to pay the liability. In order to determine that the bank or non-bank loan has become statute-barred, it is necessary to reach for the enforcement application submitted by the creditor and the documents attached to it, including the decision on granting the enforcement clause to the said payment order.
Limitation of private and non-bank institution loans
Waiting for the statute of limitations for a non-bank loan is quite risky. The creditor can, at any moment, attempt to reach an agreement, which will interrupt the whole process. It is worth being aware that the debt is increasing all this time and the financial situation is getting worse.
In addition, the lender has the right to charge us interest for the delay and any fees related to debt collection activities. Therefore, it is not worth waiting for the private loan to expire and it is better to contact the creditor in advance to inform him that we will not be able to pay back the money borrowed on time. Many loan companies offer extensions or refinancing loans.
Expiration of loans and payday loans – when does it take place?
When the loan expires, it depends primarily on who you borrowed the money from. In the case of private loans, the limitation period is up to 6 years. And after what time does the payday loan expire? The payday loan is time-barred after 3 years.
In accordance with art. 118 of the Civil Code, the limitation period shall end on the last day of the calendar year unless the limitation period is shorter than 2 years. As for the installment loan, the limitation period is calculated from the due date of each repayment. In practice, three years must pass from the day when we should repay the last installment of the debt.
What is the interruption of the limitation period?
Quite an important issue is the interruption of the limitation period. An interruption of the limitation period means that the limitation period begins again. Therefore, it is not enough to calculate 3 years from the time when repayment was to take place, because the limitation period could be interrupted at that time, which must be taken into account.
What interrupts the limitation period? The commencement of mediation as well as the debt is acknowledged by the debtor interrupts the limitation period. It’s not everything. Loan companies and debt collection companies acting on their behalf use various methods to recover the debt.
One of the methods to recover is to go to court. In fact, any action was taken by a court also interrupts the limitation period. In this case, it must be taken into account that the limitation period will only run once the case has ended.
Therefore, in practice for the debtor, it is important not only when the loans expire, but also what interrupts the limitation period.
Debtors often wonder whether the request for payment interrupts the limitation period. The answer is no. Sending the debtor’s request for payment does not interrupt the limitation period. His role is only to remind you of the need to pay off the debt.
Is it worth waiting for the loan or payday limitation to expire?
Considering that the interruption of the loan may occur at any time, it is not worth waiting for the loan to expire. Many loan companies offer their clients the option of extending their repayment dates or refinancing their loans. A person interested in one of these services does not have to provide any additional documents, and in most cases even appear in the facility.
It is enough that he issues the appropriate instruction in the customer’s panel or during a telephone conversation. You have to be prepared for the costs associated with it, because refinancing and extension of the repayment deadline is not a free service. The cost of both services, however, is much lower than the cost of the consequences of waiting for the statute of limitations.
Consequences related to the limitation period for loans and payday loans
As mentioned before, the limitation period for non-bank loans is relatively quick. However, before this happens, the creditor may take a number of actions to enforce the debt. To this end, it will certainly send the debtor reminders, which are reminders that are sent when installments are not paid on time.
The loan company may also use the services of a debt collector, which in turn will try to reach an agreement with the debtor or conduct debt collection proceedings. The debt collector cannot enforce its claims, which is worth knowing because it is the bailiff’s competence. At this moment, in addition to interest, other costs of defaulting are added to the debt.
Of course, after the limitation period, the creditor has no right to enforce the payment, either through a debt collection agency or bailiff. However, this does not end our troubles. Negative credit history is another consequence of default.
All information about unpaid debt will go to the debtors’ registers. No bank will grant a loan to a person who has a negative entry in BIK. Low creditworthiness may also mean that a non-bank institution will refuse us a loan.
We will not be paying in installments or taking the phone for a subscription. It is worth bearing this in mind when we consider delaying loan repayment indefinitely.