Statute of limitations on loans to individuals in 2019
A loan agreement is a great way to get financing and purchase a long-awaited purchase. As a rule, credit funds are used for household appliances, cars and apartments. For the use of bank money, a commercial organization charges interest. But there are situations when it is not possible to pay the debt. In this case, the banking company may go to court and are more likely to win the case if the limitation period does not end. This article will look at how long the limitation period for loans in the Russian Federation is in 2019, what happens if the bank wins the case, how the penalties and fines are charged and charged and how to avoid paying the loan debt.
What is the limitation period for a loan
According to the Civil Code, the duration of the limitation of actions is the period when the claimant may in a court of law call for the fulfillment of the obligations of the (previously executed) defendant. For a banking company, going to court is not a priority way to receive money on late payments.
In a financial institution, there is a structure that notifies customers about the existence of a delay. The duties of such a department include working with borrowers and the formation of compromise proposals that can encourage the borrower to return the delay.
Just taking and not paying money to the account can not be a reasonable and thoughtful decision. Lending contracts are designed in such a way that the legislation fully protects the financial institution. Options for developments in the situation of non-payment of debt are as follows:
- Contract transfer to overdue accountants.
- Loan credit assignment.
- Recognition of an asset as a bad loan.
- Going to court to recover debt.
- Expiration of the limitation period.
At first, the bank’s specialists work with the client. Managers of this structure are required to comply with the Civil Code. As a rule, interaction with the debtor is carried out using phone calls.
At this stage, you can agree on the payment of debt in installments or ask to suspend the accrual of fines and penalties, ask for a deferment of payments at the time of debt repayment. This is an opportune time to resolve the issue of non-payment of monthly installments.
Also, a banking organization may at any time cede lending to collectors, in the role of which can be commercial and non-profit organizations, that is, firms that may not be in any way connected with the banking sector.
This situation may resemble already “knocking out debts” from the 90s. Employees will use various methods of psychological pressure, and also not avoid calls to neighbors, superiors, parents and all those people who can somehow be associated with the debtor.
With such a scheme, the contract with the bank is terminated, and a debt to collectors arises. The legality of the assignment of rights in documents until 2014 must necessarily be spelled out in a separate paragraph of the contract, which states that the borrower agrees to the assignment.
After 2014, even such a provision in the loan financial document may not be present, since, according to Article 14 of the federal law, the assignment is assumed on a general basis.
An alternative is to apply to the court in case of non-repayment of the loan. The bank must do this as long as the limitation period is in effect, but even after the expiration of this period no one forbids them to take this action. But it is a very rare and extreme case when a financial institution lost sight of any credit, and when it was found at inventory, it decided to forgive the client and recognized the contract as a bad loan.
How much is and from what moment does the limitation period count
Different lawyers in different ways interpret the question of from what moment on a loan of an individual to calculate the limitation period. Someone assumes that time begins after the last payment, there are opinions that the period begins with the moment of occurrence of obligations, i.e. when you make a loan.
The most optimistic in this matter are various companies that provide services for “debt relief.” On our website we rely on the opinions of people who are directly representatives of banking institutions, whose practical experience allows us to provide a competent solution to various financial issues.
When a borrower finds himself in a situation where he does not have the ability to pay monthly payments, arrears begin. Penalties and fines are made in accordance with the terms of the contract. As a rule, it is 0.1% of the amount of overdue debt on a daily basis, starting from the day of delay.
Signatures and stamps, including facsimile ones, on the loan agreement mean that both the borrower and the lender fully agree with all the conditions and are ready to fulfill them in full. Therefore, as soon as a delay arises, it is assumed that bankers and the client are aware of its presence, and from this minute the limitation period is calculated.
Thus, this period will be for each payment. And 3 years after the last installment, according to the current schedule, the duration of the claim will be fully repaid. During this entire period, the debtor may or may not pay money into the account, the limitation of actions does not change.
For loans that are written off and assigned to collectors, the limitation period remains the same. To extend the time frame of the period can:
- written consent of the borrower to changes in the loan agreement;
- the borrower’s consent to the payment of overdue debts;
- lending restructuring;
- applications for deferments;
- claim, on the basis of which it is assumed that fines and penalties are canceled.
When the bank has evidence that the debtor has not forgotten the fact that he needs to pay the debt, the duration of the claim from this point on again begins to operate in the period of three years, after which it passes.
When the limitation period may be suspended
The term of the action given is a non-aggregate period, i.e. it cannot be suspended for any time. In fact, this is the knowledge that the debtor has non-payment under the contract. This knowledge arises at the time of signing the documents.
The client receives a loan and a payment schedule, which clearly indicates the dates of payment or the months when the payments should be credited to the account. If the account is paid in the billing period, then the bank has no complaints.
When money is not credited to the account, then there is a delay – and the time of limitation of actions begins. The debtor is not obliged to perform any actions prior to the start of court proceedings.
Then, after the sentence is pronounced on the writ of execution, all bank costs, including fines, penalties and court costs, will have to be reimbursed. The same situation is with credit cards.
After all, it would seem that there is no payment schedule for such a product. Is it possible to count the period from the moment of crediting the financing from the bank to the card account or from the moment of the card transaction?
And here is exactly the same principle. The period of claim, without interruption or any changes, begins with the time of the delay and is valid for three years. Also, mandatory payments are charged every month. Accordingly, for each individual contribution of its term for 3 years.
What to do if the bank sues
In many ways, the actions of the debtor will depend on whether the limitation period has expired. Under article 196 of the Civil Code of the Russian Federation, this period is 3 years from the time the debt was formed. If the appeal is made to the judge during this period, the appeal will most likely be considered in favor of the defendant if:
- there are irregularities in the document that will render the crediting invalid;
- for the period of signing the documents the borrower was incapable;
- the debt arose through the fault of the creditor, while the debtor has all the payment receipts for which the funds are sufficient to repay.
Judicial practice shows that the court decision on the collection of obligations is most often made in favor of bankers. The court applies a writ of execution, on the basis of which the defaulter’s property may be sold at auction, except for an apartment, if it is the only residential real estate.
The bank can also decide on the recovery of debt in the form of withholding up to 50% of the wages earned by transferring it to the creditor’s account. It is possible to freeze all accounts, an obstacle to traveling abroad, if the debts are more than 30,000 rubles.
The situation in favor of the borrower is considered when the limitation period has expired, even partially. It is worth paying attention that the judge is not obliged to protect the debtor, and you should take care of your rights yourself.
Bankers can make a claim, even if 3 years have passed. And the court will decide in support of the financial company. But at any time you can submit a counter-claim that the term of the action given has expired. In this case, the debt will be canceled.
Also in this way you can sue part of the debt. For example, the first delay was formed in March 2014, the limitation period expired in March 2017. The bank went to court in April 2018. Therefore, all debts that were until April 2015 are considered invalid.
Features of the guarantee
Often, a banking company requires a guarantor to issue a loan agreement. The guarantor is the person who can pay the debt if the borrower does not have such a possibility.
The guarantee is valid for 1 year after the last payment according to the original schedule. This is the period when the bank can sue the guarantor. In this case there are nuances with the situation in the event of the death of the borrower.
The contract of guarantee provides for the conditions in which it is stated whether the guarantor will fulfill its obligations for third parties if the borrower dies. When such a provision is provided for, in the order of inheritance the obligations to the bank will be given to the direct heirs by law or according to the will.
When the heir enters into his rights, the guarantor must bear responsibility for him during the year, which extends the limitation period. If the contract does not provide for such a provision, then the surety ceases to function with the death of the debtor, and the obligations will be transferred to the heirs.
The circumstances in which a situation arises that debts become impossible to pay may vary. In this case, we recommend that you fully study the loan agreement itself: all individual and general conditions.
And also pay attention to insurance. Indeed, it is possible that this circumstance falls under the insured event, and the insurer will fully cover the amount of the debt, freeing the insured person from credit obligations.