Taking a payday loan is very easy, because you don’t even have to go to a loan company facility, all you have to do is submit your application online. You do not have money to pay the debt? See what might threaten you.
Loan companies providing quick payday loans set the deadline for repayment of the entire debt in advance and it is usually 30 days, although some institutions extend it up to 60 days. The case does not seem so serious when it is necessary to pay off several hundred dollars, but it is worse when our commitment is in the amount of several thousand. Due to the fact that we have to pay back the borrowed amount once, this can be a problem for many of us, especially if unplanned expenses occur in the meantime. What are the consequences if we avoid paying the payday loan?
No timely repayment of payday loans
If we do not settle our debt on time, we must reckon with the fact that the loan company will launch an internal debt collection procedure. So we can expect prompts in the form of SMSs, emails or registered letters. Telephone contact by the loan company employees is also a very common practice.
In 2016, the Anti-usury Act was adopted, which changed the situation of debtors slightly. Before its introduction, one prompt could cost up to several dozen dollars, and this was associated with an increase in debt by up to several hundred dollars. Today’s law clearly states that the maximum amounts associated with late repayment of a loan can be equal to 6 times the NBP lombard rate, which is about 15% per annum.
The above provision is definitely beneficial for people in debt, but its introduction is also associated with unpleasant consistency for debtors. Namely, loan companies, instead of introducing a lengthy internal debt collection procedure, more and more often and quickly refer such matters to external debt collection companies that specialize in quick recovery of borrowed money.
However, if a loan company uses internal debt collection, it also has unpleasant experiences for us. Constantly appearing prompts, unpleasant phone calls based on manipulation by a company employee are not a nice experience for anyone.
Remember that the method of enforcing the borrowed amount is described in the loan agreement. So, if we know that we will not be able to pay the debt back on time, we can check what we can expect and prepare for difficult talks in advance.
What else can threaten us?
The loan company, in addition to the debt collection procedure, can also enter our data in the register of Economic Information Bureaus, which shows the current picture of the debtor’s debt. An entry in such a register may make it much more difficult to take another loan or buy equipment in installments.
The lender may also, with more severe consequences, provide information on non-repayment to the Credit Information Bureau. Why is this much worse than information on debt in BIG? Because BIK keeps our credit history for a period of 5 years, so even if we repay our obligations, we may have difficulties later in taking another loan.
What after recovery?
If both the internal debt collection procedure and the external one did not bring specific results, i.e. the loan company did not receive the amount required to repay us, the case usually goes to court. Currently, traditional court hearings are being abandoned, and loan companies are referring the case to an e-Court that carries out Electronic Remedies (EPU).
Instead of a sentence we will receive the so-called payment order, which we learn about when we receive correspondence. The document is delivered by post in the form of a verification print, which has a unique 20-character code.
By receiving such an order, we are obliged to repay the debt within 14 days. Remember that the document is a valid enforcement order, so you can start Credit enforcement on its basis.
Credit enforcement is the last attempt to recover the money we borrow from us. The Credit can take not only our salary, but also funds from the bank account, real estate and movable property that belongs to us. In our earlier entry we describe How to pay off a Credit quickly and get rid of debt .
If not payday loan, what?
If we are not sure of our financial situation and we suspect that we will not be able to pay off payday loans once, we will try to choose a safer option. Long-term loans offered by Anceste are a good option. Why is this a much better way? Because the borrowed amount can be repaid in several / several installments, and this will not damage our home budget.