How to recover money in a private loan?

What is a private loan?

What is a private loan?

A private loan, unlike an online payday loan, occurs when the lender is a private individual. In accordance with applicable regulations, this type of financial transaction may be confirmed by an oral agreement. However, for loans over PLN 500, it is worth making a document confirming the financial transfer between the parties. A written contract may be further evidence in court if the borrower fails to repay the claim.

In the case of private loans, a promissory note in the form of a promissory note is a frequent occurrence. It consists in the fact that the borrower determines the amount of the loan in the bill of exchange. In the event of non-recovery of money, the creditor has facilitated the procedure of recovering the debt by court and enforcement.

Private loan agreement – the key to later recovery

Private loan agreement - the key to later recovery

If the loan was granted on the basis of an oral agreement, you should be aware that the creditor may have difficulty recovering the debt. Moreover, if the funds were transferred in cash, there is a risk that the dishonest borrower will question the fact of receiving the loan.

That is why it is worth drawing up a contract and transferring money in the form of a bank transfer. What elements does the loan agreement contain between individuals?

  1. Details of the lender and borrower (name, surname, PESEL number, ID card number and series)
  2. Loan amount
  3. Form of repayment
  4. Time to settle the commitment
  5. Interest amount
  6. The amount of interest in the event of late payment

Referral of the case to civil proceedings

Referral of the case to civil proceedings

The matter of unpaid receivables should be resolved amicably at an early stage. Therefore, you should provide the debtor with verbal or written reminders. If the dishonest borrower does not want to settle the claim, the final argument – the court – should be reached. In this case, the lender must submit an appropriate application. The seat of the court must be in the district which corresponds to the place of residence of the debtor. It is worth noting that debt matters up to 100 thousand. PLN are dealt with by district courts, while higher amounts go to regional courts.

Important – referring a case to a civil court involves a fee of 5% on the amount borrowed. The minimum fee is 30 PLN.

Debt sale, debt collection, private debt market

There are companies that specialize in buying outstanding debts. Of course, the price is lower than the amount of the outstanding loan. However, thanks to such a solution, the creditor gets rid of the problem and recovers some of the money.

The sale of debt takes place without the debtor’s consent. The sale procedure involves the transfer of the claim to a third party. The person who took over the debt has the full right to recover the outstanding obligation. Interestingly, the debt can be sold, among others on the online debt market. The debtor should be informed about the sale – preferably by registered mail.

You can also rent a debt collection company. In this case, the debt collector usually collects remuneration based on the commission on the amount recovered. It is worth noting that debt collection activities are cheaper than selling debt. However, they do not guarantee recovery.

Entering a dishonest debtor into the KRD – is it possible?

Entering a dishonest debtor into the KRD - is it possible?

An effective method of recovering money is to enter a dishonest borrower into the KRD. Natural persons may enter the debtor into the register upon receipt of a court judgment on immediate repayment. Interestingly, almost 85 percent. persons registered in the KRD within two months of registration have regained their money (in the case of debts not older than 12 months). In total, over PLN 23 billion was recovered thanks to the register.

How to add a debtor to KRD?

  • Sending a warning about the intention to enter into the KRD
  • 30 days from sending the letter
  • Adding a dishonest borrower to the National Register of Debtors.

People who are on the blacklist have limited access to financial products (e.g. cash loan, payday loan). Furthermore, such a debtor cannot purchase a telephone or internet subscription, etc.

When does the debt expire?

You should be aware that the debt may expire. In the case of a private loan that has been granted to a natural person, the limitation period is 10 years. “Overdue” does not count from the date of the loan, only the repayment date specified in the contract. In a situation where the loan agreement does not express time to commit, the time to settle the claim is 6 weeks from the termination of the agreement by the lender.

How to recover money if the debtor dies?

How to recover money if the debtor dies?

However, in the event of the borrower’s death, the debt is usually taken over by the immediate family of the deceased. If the heir does not renounce his succession, the creditor can successfully apply for a refund. If the heir refuses to accept the inheritance, the lender has no chance of recovering the money.

How do loan companies get their money back?

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Non-bank institutions verify the financial standing of their clients. Therefore, people who may have a problem with repayment do not receive a loan. However, if the debtor is unable to settle the liability for various reasons, he should inform the lender as soon as possible. Due to the fact that there are amicable methods to solve the problem – e.g. extension of the repayment period.

If the parties cannot reach an agreement, the so-called soft debt collection. It consists in the fact that the debt collection department sends reminders and reminders to the borrower. Reminders can take the form of a telephone conversation, an e-mail message or a letter. Going to court is a last resort.

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