When taking out a loan, it is important to stick to the repayment date set. See what is involved in not paying your debts on time.
Have you ever wondered where the very negative opinions about companies that grant loans or credit come from? Who are the people who give such unflattering comments and why do they assume in advance that the company from which they want to borrow money is really trying to deceive them? Isn’t it, however, the case that most negative reviews result from the imposition of interest on a customer who does not repay the loan on time?
I don’t pay back the loan
To start with, you need to realize that credit is a service that works on a similar principle to any other. If we do not pay the bill for water, electricity, gas, depending on the contract we have with the supplier, interest will be added at the beginning for the lack of timely repayment. If we do not pay the debt, we will be deprived of the service, and if we still do not pay the amount due, the service provider may demand repayment in court. When signing a service contract with a mobile network operator, we read first about our rights and obligations. The situation is similar with a loan, payday loan or loan. Before we decide to borrow money in a given company, we read the contract carefully. Lenders are required to provide the client with all contractual terms. This information is public and available on the websites of specific services. At Milhelm Weister you can also find all information regarding loan costs, contract terms, fees and commissions here.
What does the bank do?
If the loan installments are not repaid, the bank will try to contact us via a designated representative to find out why we avoid repayments on time. During such a conversation, we can try to get a solution in a situation when we are not able to repay the loan according to the previously agreed schedule. However, if our debt is so high that the bank does not enter into any negotiations with us, it may reduce the amount of credit granted to us or simply terminate the contract, which means paying off the whole debt within the prescribed period. If we are unable to pay our debts on time, the bank may start a debt collection procedure or sell our debt to a debt collection company. In order for a bank to obtain an enforceable title, it must submit a relevant application to the court for an enforcement clause. After the court receives a positive response to the application, the bank obtains permission for credit’s enforcement.
Debt enforcement by a debt collector
If claims for repayment of the loan granted are dealt with by an independent debt collection company, its representatives will contact the debtor in order to propose an appropriate solution. This can be, for example, spreading the debt into new, less burdensome installments, consolidation loan or other offers available at the companies with which the debt collector cooperates. If you do not decide to cooperate with a debt collection company, it has the right, just like a bank, to submit a request to the court for a repayment order. After obtaining such an order, the person who does not pay the loan has only fourteen days to settle the debt or appeal against the decision, amend it, etc.
The credit starts working
If the creditor cannot recover his money and receives an executive title from the court regarding debt enforcement, a credit begins his work who acts according to the provisions of Polish law. In the first place, the credit deals with our salary. According to the latest regulations, if the debtor is employed under an employment contract and does not earn a minimum wage, the credit can take up 50 percent of his earnings. It is a consolation, because if the credit is unable to recover the debt from our salary, he has the right to seize our remaining property, i.e. a flat, a car or other valuable items.
What is the lack of loan repayment?
Lack of loan repayment or non-payment of payday loans is associated with entering us on the list of the National Register of Debtors and giving a negative entry in the Credit Information Bureau or BIG, if we run a business. Being on the shameful list of debtors almost completely deletes us as credible borrowers and closes the way to receive further cash benefits. That is why, unfortunately, the so-called gray loan zone is thriving, where dishonest companies or private individuals offer to indebted persons who have no chance of obtaining a new loan from a bank, or even get payday loans via the Internet, often borrowing money or subject to suspicious contracts. We must realize that Scoring BIK was not created to make it difficult for clients to take loans, but to avoid continuous debt by people who are unable to get out of financial trouble. Most often, however, it is these unreliable customers who put the most negative reviews about a company in which they did not get a loan, because they did not appear as credible borrowers.
No repayment at Milhelm Weister
If for some reason you are unable to pay Milhelm Weister loans on time, please contact Customer Service. Our consultants will try to propose the best solution in this situation.
Have I paid the credit or will I get a loan?
If we were able to repay the credit and we need another injection of cash, we are probably wondering if we are able to obtain a loan with an institution with bad credit standing from any institution? It all depends on what non-banking company we choose. Some institutions support indebted people and grant loans to pay their outstanding liabilities. What is the risk of loan defaults? Well, certainly in the future a person who has been entered in the debtors database will have a problem with obtaining a loan from a banking institution and most non-bank companies. This means that we may be refused a loan or credit in the future. Non-payment of a loan threatens not only to enter our data in the register of indebted persons. Financial companies with indebtedness can start debt collection or even court proceedings. All costs will be borne by the debtor. The debt collection procedure is related to the fact that we may lose our own property, because at present the credit can take over not only our bank account, including part of the money from the source of income received, but also movable property or owned property. It all depends on how high we have debts with the creditor.