Problems with payday pay can happen to everyone. A loan company, like a bank, has the right to ask for a reminder, i.e. a request for payment. How much does such a reminder cost? What kind of contact can we expect? Today we are looking closely at such requests.
Sending debts to the debtor is the first step companies take to obtain outstanding debts. If the client ignores contact attempts or refuses to pay off the debt, the less amicable way remains – debt recovery by an external company or entry into court.
Types of prompts
Individual loan companies use different forms of prompting customers. The most common methods are:
- electronic prompt – this is usually a reminder email
- telephone prompt – here are two options to choose: a text message reminder or direct telephone contact. The lenders usually use this first option.
- written request – this is a reminder sent by letter, usually by registered mail. These types of prompts are usually sent only when other methods of contact with the client fail. A written reminder may also be a pre-court payment request.
- field debt collection – this is a company employee’s visit to the borrower’s house, which is in arrears with repayment. Most often used in the case of installment loans with home support.
Costs of prompts
Only a few years ago, the prompts were able to significantly increase the cost of the loan. Non-bank companies, on the other hand, made themselves a great source of income for them. The once-charged price of about PLN 20 for a telephone prompt, however, did not have any coverage in reality. Fortunately, today we no longer have to worry about such fees .
Effective from March 11, 2016 updated so-called The “anti-franchise law” has effectively limited loan companies from charging fees for prompts. From that date, these fees have been included in the limit of borrowing costs which can not be exceeded by the lender towards its clients.
Virtually all loan brands that provide short-term cash are already using the limit at the time when the loan price is determined. Therefore, the resources from the pool are no longer sufficient for possible prompts.
The situation is slightly different in the case of installment loans. Due to the longer repayment period, the lenders have higher limits. Thus, they can find funds to charge the borrower notification fees. In fact, many lenders are slowly departing from this practice.
# 1. Once you receive the prompt, you must repay the commitment immediately.
The lender has the right to charge you penalty interest for each day of delay in repayment (14% per annum). The longer you wait with the repayment of the loan, the higher the final interest will be.
# 2. If you are unable to pay back the loan, contact a loan company consultant
It would be best to avoid a situation where the lender reminds you of the repayment by means of a prompt. However, if you have already received a prompt, do not avoid contacting the loan company. Call the lender and tell them about your situation. Perhaps thanks to this you will avoid completely unnecessary additional costs of the loan.
Remember! The lender’s patience has its limits. If you do not respond to the prompts, one day the loan company can take your case to court. And then you will still have to pay the costs of court proceedings that can not be avoided!
Monitor – is it necessary?
When deciding on a loan, hardly anyone thinks that it will have problems with its repayment. Unfortunately, cases happen and everyone can experience sudden financial problems. Are the prompts really necessary? After all, most customers know their situation very well and remember that the repayment date has already passed.
However, it should be remembered that it is normal to demand repayment of debt. If we ever make a delay in repayment, remember that ignoring the prompts and prompts is the worst possible way out. It is much better to try to find a solution that satisfies both the creditor and us.