Support and assistance in non-performing loans write-off
Get a lawyer’s advice
When granting a credit, a bank risks its own money: it acknowledges that you can do well today and you pay but in a year something may change and thus you can’t pay in time. To protect its money, the bank signs a contract where it provides for all the risks and tries to protect its assets to the maximum. The problem is that your money, property and sometimes freedom are at risk.
The things the borrower doesn’t know
Banks shall work in accordance with the law. If the bank violates the law it can lose its license. At the same time, banks want to earn more than it’s allowed by law. In order to get their profit without having any problems with the law, banks formulate all the provisions of the contract scrupulously. Thus, the final contract is drafted in such a way that it may look totally legal but you can hardly ever understand anything. And that’s the point where credulous borrowers can get entrapped.
A client applied to us: the bank deceived him in the most creepy and disagreeable way. The annual interest rate was 15% for the moment of signing the contract. But when recalculating the annual payouts, the client found out that in fact it was 16.5%. It turned out that the bank applied a surcharge rate without informing the client about it basing on really vague contract provisions. Finally the borrower overpaid a lot of money to the bank but he was really helpless as he couldn’t prove the bank’s fraud. We helped him to get his money back.
What banks do to make credits more profitable without violating the law:
- The contract states that the bank can change the interest rate at its own discretion;
- The bank adds the provision that it can apply to the arbitration (non-state) court;
- The bank determines extortionate punitive sanctions;
- The bank extends the action limitation period (over 3 years);
- The bank includes hidden fees and charges.
Besides that all these tricks are absolutely legal, they are written in such words and statements that you’ll never detect them without the lawyer’s assistance. As a result, people overpay, lose their pledged property and get deep into the debt pit.
What banks do if the clients don’t pay off their debts
If the debtors can’t pay off their loan the banks suggest debt restructuring, i.e. the credit rescheduling as the measure of last resort for the negotiable solution of the problem.
The bank can suggest:
- Cutting the interest rate;
- Writing off the interest charged;
- Cutting the monthly payment.
In such a case most credit users take a sigh of relief and feel satisfied. But soon it turns out that in fact this idea is much more advantageous for the bank.
For example, the bank can extend the loan period and save the interest rate. As a result, the debtor overpays significantly for the credit. Or the bank can include credit advice services into the loan price without any explanations. It does not usually mean anything but the price for such an advice may reach 7 thousand hryvnas. According to the contracted restructuring terms and conditions, the bank can also charge a commission fee for crediting your account without informing the client.
As a result, you get a millstone around your neck instead of a lifeboat.
If the loan restructuring doesn’t help to get the money back (and it usually doesn’t and the loan gets bigger instead) the banks involve collectors companies. First, polite bank officers start calling you and then these officers become more brutal. If that doesn’t help the bank brings the matter to court. At this stage, people usually say “good-bye” to their apartments or motor vehicles in the bank’s favor and sometimes even get into prison.
It’s time to apply to a lawyer
Signing a contract is just the right moment to apply to a lawyer. We’ll study the contract, specify all the hidden problems and pitfalls and help you to correct it. Our practice proves that such approach can save a fortune for our clients and the price of our advisory services is really worth it.
If the trouble has already happened to you we can provide our assistance in:
- Writing-off the non-performing loan;
- Protecting your property from collection;
- Terminating the enforcement proceedings;
- Stopping penalties and punitive sanctions growth;
- Fixing the loan amount;
- Negotiations with the bank and collectors;
- Seeking payment in installments if necessary;
- Cutting the monthly loan payments;
- Getting discounts on the loan withdrawal;
- Changing the loan currency.
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