Currently, Metabank institutions offering attractive cash loans granted without verification of the data contained in BIK are very popular. Over the past few years, the sector has grown rapidly. Currently, Metabanks offer not only payday loans but additionally expanded their offer with attractive long-term loans, which tempt with low interest rates and the possibility of any payment of installments. It is not surprising then that people are more and more willing to reach for them. The possibility of almost immediate repair of the household budget means that they forget to analyze in detail the provisions of the contract, which often ends in a growing spiral of debts, which in a straight way can lead to consumer bankruptcy.
Delay in loan repayment – consequences
People who spontaneously reach for loans – payday loans are very often not aware of the real consequences of not paying back on time. Hearing tempting slogans informing that the first loan will be completely free reach for the phone to be able to freely manage funds after fifteen minutes. Difficulties begin to appear only when the loan is due. The option of extending the installment repayment date turns out not to be as attractive as it was assumed, because extending the deadline by a week may cost from several dozen to even several hundred zlotys. Another unpleasant consequence of non-payment of obligations within the prescribed period is the loss of an attractive promotion – the first loan for PLN 0. Metabank adds additional costs to the required repayment amount, which, depending on the provisions in the contract and information forms, may even reach several hundred zlotys. Then the borrower may think of paying off the loan late, hoping that the Metabank will not be aware of the delay. Unfortunately, the realities are completely different, because after a few days the first prompts will start appearing, and the consequences associated with non-payment of the loan are much wider, and among them we distinguish:
- deterioration of credit history,
- entry in the register of debtors,
- difficulties when shopping on installments,
- it is not possible to conclude a contract for subscription services,
- much higher total loan costs.
What does the writ of payment look like?
Although every Metabank institution has its own laws, in most cases the writ of payment procedure looks similar. One of the first steps taken by Metabanks is to send a prompt reminding you to return the loan. This reminder, also known as a reminder, is usually sent between 7 and 21 days after arrears. To ensure full effectiveness of reminders, meta-bank institutions use various forms of contact. The first reminder is usually sent after a few days from the date of expected payment via electronic communication such as sms or e-mail. If, despite the reminder sent, the payment has not been made, the lender makes a phone call, which is considered effective even if the call is not answered. Only the last element of the writ proceedings is to send a registered list to the correspondence address indicated in the application.
Each reminder sent to the debtor is charged with additional costs. Depending on the institution, these costs may range from a few to several dozen zlotys, which means that a free loan has become a pleasure.
When reminders do not work
It should be borne in mind that, in accordance with the provisions of the contract, if the loan is not repaid on time, the lender may terminate the contract due to the borrower’s fault. Depending on the practices used by the Metabank institution, such a solution may occur even before the case is referred to the debt collection department.
It often appears that the creditor’s writ proceedings are ineffective. Then begins the complicated amicable debt collection process, which generates further additional costs of several hundred zlotys. In order to recover the claim, the meta-bank institution transfers the case to the internal debt collection department, which is to encourage the debtor to pay the whole liability. The amicable debt collection process begins with contacting the debtor via telephone to propose the distribution of payments into installments convenient for the debtor. However, if the contact fails, then the debt collectors send a payment request to the indicated correspondence address. If this form proves to be ineffective, then the receivables are sold to an external debt collector, who, depending on the practices used, may visit to determine the manner of paying off the debt. However, if this form of debt recovery also turns out to be ineffective, the case is referred to the court in order to obtain an enforcement clause enabling the case to be referred to the last debt order – bailiff.
The last step – bailiff proceedings
Bailiffs are still considered by many to be the fulfillment of the biggest nightmares. No wonder, the very cost of bailiff execution can be dizzy, and the additional vision of blocking a bank account or attachment of salary make what we have been running away for so long become a reality. Not surprisingly, the bailiff, unlike debt collection institutions, has much broader rights. While debt collectors can only induce the debtor to pay the debt, the bailiff can take further steps, including:
- seize cash directly from remuneration (all funds under civil law contracts and 50% of remuneration obtained under an employment contract, leaving the debtor at least PLN 1,460 available),
- seize cash accumulated on the bank account,
- movable goods owned by the debtor, l
- real estate,
- other property rights.
The most common form of debt collection by bailiffs is the attachment of cash, but if the debtor does not have a permanent source of income and does not run a bank account, then movable goods are taken over, such as household appliances and electronics, which are then auctioned until the equivalent amount is satisfied.
When is the statute of limitations?
Many debtors ignore existing liabilities in the hope that their servants will soon be barred. In fact, however, it is not as easy as it may seem. The limitation period for receivables arising from the loan agreement is governed by Article 118 of the Civil Code and is 3 years from the planned repayment date of the liability. It should be borne in mind, however, that any agreement regarding the repayment of the liability, both with the meta-bank institution and later with the debt collection company, extends the limitation period, because through negotiations conducted the debtor confirms that he is aware of the existing liability.
Also, issues of possible limitation of claims change when the case is referred to a bailiff. Bailiff’s obligations expire in 10 years and are calculated for each activity carried out by a bailiff.
You can avoid the unpleasant consequences
The best way to avoid the unpleasant consequences of defaulting on a due date is to refrain from reckless decisions. Before signing the loan agreement, you should carefully examine the options for its subsequent repayment, because sooner or later this deadline will come. It is worth considering whether this loan is really the only solution. If you really need to fund your home budget with additional funds, read the agreement and the terms of its conclusion in detail. To this end, particular attention should be paid to such values as the APRC (the actual annual interest rate – the lower, the lower the total cost of the loan), as well as the possibility of extending the loan repayment dates and its cost. Knowledge of these basic values will largely avoid difficulties in paying back the loan.
Every year, Metabank institutions try to tempt with increasingly interesting offers, offering higher and higher amounts with the first loan – completely free. However, it should be remembered that loans should only be the final solution, which aims to help in difficult times, and not be an additional source of income, because only the responsible use of external financing will avoid the unpleasant consequences of non-repayment of the loan on time and the growing spiral of debt.