Even if you have managed to obtain a personal loan it is necessary to carefully establish not only the amount of the installments, so that they are sustainable, but also to pay close attention to the due date of the payments, usually on a monthly basis.
However, it may happen that, in a time of economic difficulty, there is a failure to pay the loan installment or a simple delay. What happens in these cases? Depending on the bank that disbursed the money, the consequences may change.
To actually know what can happen, it is advisable to read the pre-contract and/or the contract signed with the financial intermediary. The document lists the consumer’s obligations and indicates the extent of the penalties if the obligations in question are not respected.
Delayed payment of the loan installment: what happens
The delayed payment of the loan installment foresees, on the basis of the contract stipulated, consequences, such as:
- the increase in interest;
- payment of late payment as defined in the contract;
- expenses incurred for recovery interventions, if the delay leads to recourse to subjects in charge of credit recovery;
- unilateral termination of the contract for default, requiring the debtor to immediately return the money and expenses accrued. It should be noted that this is the most extreme consequence.
Non-payment of the loan: reporting to credit checker
In the previous paragraph, the most common consequences have been set out in the event that you cannot pay an installment of the loan contracted with the bank. However, what happens if the non-payment of the loan lasts for several months?
In fact, the entity that provided the personal loan has the possibility to report the consumer to the risk centers, credit checker. This entails the inclusion of the debtor in the so-called “black list” of bad payers.
The name of the reported person remains on the list for a period of time ranging from 12 to 36 months depending on the seriousness of the default.
Risk centers are databases that contain the names of insolvent people. These are very useful databases, consulted by lenders to find out the customer’s credit reputation.
If a potential customer is present in one of these lists, he may not obtain the loan or, if he already has a debt in progress, compromise the possibility of obtaining future financing .
It is clear that consumers are warned in advance of the potential registration with a risk center through specific communications.
What are the alternative solutions to avoid insolvency?
To avoid the risk of insolvency and its consequences, it is advisable to evaluate, when requesting a personal loan, the financial products that provide alternative repayment solutions if the consumer were to find difficulties, such as:
- the installment jump;
- the change in the amount;
- the extension or reduction of the depreciation plan.
In any case, if you find yourself in economic difficulty, before making a non-payment of the loan occurs, it is advisable to notify your bank immediately, so as to find an appropriate solution.