Loan term

The content of the article

• What is a statute of limitations on a loan
• How to correctly calculate the limitation period for a loan
• The consequences of the expiration of the limitation period
• The role of collectors
• How to avoid problems: recommendations for the debtor

Many borrowers clutch at a life buoy – a limitation period on accounts payable. For many, it remains a secret how to use this method. All forums are advised to talk with a lawyer, but if this is not possible, figure it out yourself. Find out what and why there are statutes of limitations on debt collection.

What is a statute of limitations on a loan

Such a period is known in lending practice, during which the creditor bank may demand a repayment of the debt. At the same time, he may summon the borrower to court in connection with an unpaid loan. This period is the limitation period for the loan agreement. Repayment of the debt and the requirement of this can be carried out only at this time. You can use this practice to avoid paying a loan, waiting for the expiration of the period. Such attempts are thwarted in every way. However, for some, expiration will be a way out of the deadlock..

How to correctly calculate the limitation period for a loan

The time limit for the loan is limited – three years, but there may be several points of view, what point is considered the start of this period. Obviously, the date of conclusion of the contract cannot be considered an accurate reference. Courts consider a convenient starting point the date of the last transfer of funds to the account. However, some courts are able to consider that when the contract expires, then the credit limitation period begins. Due to the fact that the application of such decisions is a rare case, by law the borrower has the right to appeal and change the result.

The truth of the first opinion is also indicated by the fact that judicial practice applies equally to consumer loans or loans for production, and to credit cards. The latter do not have an expiration date, so you can only report on the last transaction. However, debt collection and refund claims also end after three years..

However, there is a situation where the statute of limitations for the enforcement proceedings of bailiffs is calculated differently. The application of this principle cannot come into force if the borrower entered into official correspondence or other communication with bank employees, for example, with its executive director. Under these conditions, the counter is reset to zero. The credit limitation period is a time-limited story, so you should not believe the intimidation of banks or collectors at the end of the specified period.

The consequences of the expiration of the limitation period

Often, even after the expiration of time, banks continue to demand a refund. To solve a problem, a legally savvy borrower can simply file an application. The document must contain information that the statute of limitations for the enforcement proceedings of bailiffs has expired, and the organization cannot demand unpaid funds. It is important to remember that the length of the three-year period is not affected by the bank’s appeal to collectors for help..

The court cannot prohibit calling, reminding the debtor of non-return, even after the expiration of a three-year period. Even this hopeless situation has a solution: the debtor needs to write a statement, in it he will ask for the recall of personal data. Due to this, in most cases, the bank gradually begins to forget about its debtor. It is possible that you will fall into the “black” list of the bank, problems may arise if you want to take another loan from the bank for something else.

The role of collectors

No bank agrees to just forgive the debtor, so they turn to special organizations – collectors for help. It will be very lucky if the representatives of this company simply call and threaten, but they have a different trend. Unscrupulous third-party organizations puncture tires, paint the walls of the entrance with frightening inscriptions, fill the castle with glue so that the owner could not get home. In the most extreme case, they can hire muscular guys who are not of the most pleasant appearance, so that they “seriously talk” with borrowers.

The citizen is protected: you must immediately contact the police with complaints. If the threats continue, then you should contact the prosecutor. After that, the collectors, if they at all costs seek to “knock out” the money from the debtor, will be left behind because they are engaged in illegal activities. Faced with the higher authorities, they have no desire. It is worth remembering that the statute of limitations for debt collection is not related to the transfer of data to collectors. So the bank seeks to accelerate the return of money to itself, but does not contact directly with the borrower.

How to avoid problems: recommendations for the debtor

1. Remember that the loan debt period is three years, when it expires, you do not owe money to anyone. This is not a guarantee that the bank will lag after this period..
2. The period begins with the last transaction, but only if you have not contacted the bank, even a telephone call will cancel this period..
3. If you encounter collectors, write a complaint to the police and prosecutors. Their activity is not legal, so you can demand the inviolability of you and your property, protection.
4. Address to experts – credit lawyers to understand your unique case. Depending on the region and the terms of the contract, there may be different ways to solve the problem. It is worth considering all the nuances, and a professional will tell you the best options. For example, the RFK group of companies assists consumers in solving problems with loans..
5. Pay loans on time and carefully read all the conditions when you borrow money from a bank. He will not want to go broke due to the fact that you missed the clause of the contract on the terms.