If you miss a loan but can't pay it on time, is it okay if you don't pay in installments, will you go to jail? How is the loan company and the law handled?
Buying and selling on installments has become a sales trend over the years. So, what if the installment loan does not pay back ? Debt repayment liability in case of insolvency and other related issues will be consulted and answered specifically by CashBerry financial company in the article below.
“Installment loan is a form of consumer lending by a financial company to customers. Accordingly, the financial company and the customer will reach an agreement on the principal and interest of the loan on time.” – According to Clause 3, Article 3 of Circular 43/2016/TT – NHNN.
According to Clause 1, Article 6 of Circular 43/2016/TT-NHNN: “Financial companies providing consumer loans are allowed to open service introduction points at places where consumer goods and services are supplied in order to introduce them to consumers. Introduce loan products, collect information and loan needs of customers.
This means that the purchase of goods with 0% interest installment payment at a store or agent is the purchase of goods by the buyer in installments with a financial company that has a service introduction point at that store.
When purchasing goods in installments , the buyer will establish a purchase contract with a financial company, stipulating the obligation to pay (including principal and interest) in many terms until the payment is completed. Normally, installment loan contracts will stipulate the amount to be paid monthly, which can be 3 months, 6 months, 12 months, ...
Is it okay to get unpaid installment loans - one of the biggest questions for those who are buying on installments but can't make payments on time. Depending on each specific case, the borrower will have a certain treatment. However, if the installment debt is not paid , you will have to bear the following consequences.
1/ You will be listed as bad debt on CIC
Certainly, when buying installments without paying money , you will be classified as bad debt on the CIC system . And once you have bad debt, it will be difficult for you to borrow money anywhere in the future (except for online loans ).
2/ Pay a high penalty fee
Typically, a late payment penalty is a fee charged at 150% of the loan's original interest rate. This interest rate will be multiplied by the overdue principal amount, overdue interest, and then added together to calculate the amount to be paid. When a penalty fee is applied, the total amount you have to pay will be many times higher than the original total debt.
3/ Being bothered by calls
If the installment payment is not on time , the lenders will apply debt collection measures. In addition to the daily reminder calls, there are many other forms of debt collection that you face. This will not only affect you, but your family will also be affected.
4/ Being sued
If after all the debt collection measures you still do not pay in full, then your case will be taken to court to proceed with legal proceedings. You could face the maximum penalty of imprisonment and damages.
* Civil liability
According to article 440 of the Civil Code 2015, the purchaser of installments will be obliged to pay the money on time, at the place and at the amount specified in the contract. In case the buyer fails to properly perform the payment obligation, it will have to pay interest on the late payment amount corresponding to the late payment period.
The interest rate arising due to late payment is also specified in Clause 357 of the Civil Code 2015. Accordingly, the percentage of interest will be determined by agreement of the parties but must not exceed 20%/year of the amount. loan. If there is no agreement, the interest rate and when there is a dispute about the interest rate will be determined at 50% of the limit interest rate (not more than 10% of the loan amount).
In addition, the buyer can negotiate with the financial company on extending the repayment term, committing to repay the debt, and compensating for late payment expenses.
* Criminal responsibility
In case the buyer shows signs and tricks of fraud, appropriating goods purchased in installments of VND 2 million or more, he may be prosecuted for criminal liability for fraud and appropriation of property (According to Article 174 of the Penal Code). 2015) with a penalty of non-custodial reform from 3 years to life (depending on the severity).
In addition, offenders may also be fined from 10 to 100 million dong, banned from practicing certain occupations or doing certain jobs for 1 to 5 years, or having part or all of their property confiscated.
From the above information, it can be seen that if the installment loan does not pay , you will have to bear unpredictable consequences. Therefore, in order to help you not to fall into an imbalance in spending leading to inability to repay, CashBerry offers the following measures.
- Consider carefully before signing a loan contract to purchase property, goods and services.
- Only sign documents when you have researched and learned the contents and made sure that the information is accurately represented on the documents requested to be signed.
- Request the provision of contracts and transaction documents with full signatures and seals of the service provider for storage, comparison and compliance with the contract's contents.
- When a dispute arises, in addition to reflecting by phone to the relevant department of the service provider, consumers should combine emailing or mailing to ensure information retention, avoid In case financial service companies give reasons for not receiving consumer complaints, there is no basis for settlement.
* Note: In many cases, borrowers who are in urgent need of money will defy it. Despite high interest rates, long terms, unreasonable terms, etc., they still accept to sign contracts and receive disbursements in a hurry. Until I calmed down, I found myself unable to pay the debt. Therefore, in the process of borrowing money anywhere, you need to learn carefully about the loan amount, interest rate, payment method, lending unit, ... to avoid future damage.
The above is a way to help you avoid the risk of borrowing money without being able to pay. In case you have missed a loan without having money to repay, you can apply for an extension of the repayment period. Absolutely do not run away, avoid the lender, because the act of evading, not paying the debt can be charged with the crime of abusing trust to appropriate property under the Penal Code.
Is it okay to pay in installments , how is it handled? Surely you have found the specific answer through this article. Hopefully, you will find a reasonable solution for your problem. If you have any questions, please contact CashBerry for advice!