An unpaid loan , of course, leads to major consequences for the debtor, but also for his guarantor.
Those who do not pay the installments of a loan punctually meet insolvency and sanctions by the credit institute. Paying the installments is a major guarantee that makes sure that everything goes well according to the law with a pre-established agreement, as appears to be a loan.
Do not pay a loan: what happens to the bank?
When a loan is requested, according to the stipulation of a contract and prior to the request, the various types of payment and the time to be used for repayment are agreed. In the event that a debt has not been paid, it is the bank that decides how to act on the basis of the associated problems.
The bank, for example, will decide whether to act alone for recovery or whether to rely on a debt collection agency. These agencies are committed to buying the bank’s debt at a lower price then leaving it covered and then returning from the old debtor to contract the amount to pay to extinguish the debt now no longer belonging to the bank but to the agency.
Returning to the unpaid loan and the relationship between bank and client, it will be the bank itself that will try to solicit the debtor through warning letters and other methods. In the event that the customer continues not to pay the loan or that the reminders are not taken into account by the customer, you will risk being entered and reported to the Crif as a bad payer. This means having a negative profile for some time without the possibility of requesting a loan again. In fact, at the time when you are reported as bad payers, banks and lenders will take care not to entrust you with a new loan as they do not have an effective guarantee that you can pay it to the end. There are also cases in which a bank gives permission for a loan to a bad payer, but they are very rare and sporadic cases since it would otherwise end up losing a lot of money.
Do not pay a personal loan: the penalty
In addition to the risk of being reported and being identified with a negative profile, a penalty is also added to the total sum of the debt to be repaid. Not only that, therefore, the debtor will have to collect the pre-established amount, but he will also have to pay huge interest that accrues with the payment delay.
If all this is not enough to incite the debtor to settle the sum established, the bank will decide to rely on a court for a lawsuit against the insolvent. At that point, the foreclosures of the client’s assets will arise, be they mobile or immobile.
I can not pay a loan: the assignment of the fifth
Another way to ensure that the capital is returned to the lender is the debit of the installments directly on the salary of the debtor, assuming that he has one: we see the solution that is called transfer of the fifth.
The sale of the fifth is the most used solution for unpaid loans . In this case, it provides for a payment of 1/5 of the total amount from the pay slip that is 20% of the salary, without counting the additional deductions in this regard. This amount may increase if the debtor is a salaried employee: in this case, there will be a deduction on the salary of 2/5. In this regard, we are talking about the sale of double-fifths.
Through this type of repayment, the holder of the loan is free to request another loan because the repayment is no longer direct, but is entrusted to the employer. The employer becomes the direct debtor and then proceeds to pay the debt, while the worker will see his salary decrease to cope with the debt.
Not only the workers, but also the pensioners now have the possibility to request or reimburse the loan through the assignment of the fifth. In the case of retirees, however, the sum will be deducted from the monthly pension and the maximum age to apply for a loan will generally be 85 years or, in any case, the applicant must not exceed the age of 90.
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Unpaid loans: insurance
In order to avoid further difficulties, the finance companies prefer to take out a life or work insurance provided by law to protect themselves from possible insolvency by the debtors. If the debtor’s employment position is at risk, the insurance provides for a recoupment on the debtor taking into account the TFR so as not to cause difficulties for the lender. The Severance Pay is deposited by the company up to the total fulfillment of the reimbursement therefore not available to the customer. Unfortunately, insurance is an advantage for the company and not for the debtor. In any case, in the event of death, no recourse will be applied which will affect the heirs.