More or less kills everyone, you want for a reason, you want for another, to find yourself having to ask for a personal payday loan. Often it is done to face an unexpected expense or relative to the marriage, to the purchase of the first home, to the university studies. All those situations, in short, here you need almost immediately a certain liquidity of which, however, you do not have personally. There are many institutions that can help in this regard, each with its own interest rates and rules. Before applying for a personal payday loan, it is a good idea to carefully consider whether you are actually able to repay the entire amount plus the interest, and only then proceed with the stipulation of the contract.
However, despite the good initial premises, it could happen that further expenses are incumbent, the installments accumulate and in the end it is not possible to meet the commitment made and the payment of the requested loan is not completed within the established time. It is therefore important to know what happens in these cases.
What is a personal payday loan
This is the signing of a real contract whereby it becomes a debtor to a creditor (such as a bank, for example) of a certain amount of money that must be repaid within a certain time limit. To this sum must be added the interest, which may vary according to the size and duration of the loan, and everything must be paid out over several years with simple monthly installments.
Insertion in the lists of bad payers
Generally, it is not an event that occurs if only one installment is skipped or if it is simply paid late. You are inserted in these lists when the delays accumulate between them and the unpaid installments become several.
When a loan is requested, first of all and automatically, there is also reporting to the Credit Information Systems (SIC), managed by private individuals, which are responsible for identifying the subject and placing it on the basis of its actual capacity of to meet or not to return the requested amount. This is a simple check.
If the person who requested the loan should leave a very large amount unpaid, then this is reported, in addition to the SIC, also to the Inter-bank Alarm Central (CAI).
This is a public database, this time not managed by private entities such as SICs, but placed directly under the control of the Bank of Italy.
What happens at this point?
For one or two years, depending on the case, you are unable to request additional financing and your credit card is blocked for an equal period of time. After these two years have elapsed, which are counted from the moment in which the debt is fully paid, it is however not said that a further loan can be obtained in the future.
Although there is no legal impediment to obtaining it, it is almost impossible for a bank to grant a loan to those who in the past have shown themselves to be a bad payer and therefore not reliable.
The same thing applies even if you intend to purchase an asset in installments: the merchants have access to this database and can refuse this purchase method to the subjects whose name appears among these lists.
It is good to keep in mind that the cancellation from the bad payers database cannot take place unless the debt has been completely repaid.
The consequences on personal finances
Unpaid personal payday loans can lead to significant consequences with regard to the personal finances of the debtor.
This occurs primarily because the creditor institution, in addition to the interest agreed at the time the contract was signed, also has the right to reimbursement of administrative expenses and the collection of default interest.
This is a real economic sanction, a fine, which applies to individuals who have not complied with the terms of payment provided for in the contract to obtain the loan. This fine can be added to the next installment or it must be paid with a separate payment to be sent by postal order or bank transfer (in which the reason must be specified), this is the creditor himself to establish it. As if this were not enough, in the case of numerous monthly arrears, the institution that provided the loan could claim the repayment of the amount due in a single solution.
How to protect the bank
As is to be expected, the bank (like any other entity that offers financial products) adopts specific procedures to protect itself in the event of debtor insolvency. If the amounts and installments of unpaid personal payday loans are of a minimum amount, you are simply asked to pay by written notice, generally sent by registered mail to which the signed contract is attached, or by telephone. Through these same channels, the possibility of granting an extension for the balance or registration in the database of bad payers is also communicated.
Instead, the court is used only for amounts of considerable value. For obvious reasons, the case is almost always won by the bank and, in this case, the debtor can oppose the injunction of the court only if the 40 days of notification of the same have not elapsed. Once this time has passed, if the injunction is not opposed and one is still in default, one proceeds with foreclosure (both of material assets and part of the salary) and then ends up with forced expropriation, or with the subtraction to the debtor of some assets of his property in order to fill the debt of the unpaid loan.
In order not to incur an attachment, if you have a fixed salary, you can request the transfer of the fifth of the same until you are reimbursed the amount due.
In the case of unpaid personal payday loans, you are still entitled, thanks to Law no. 3/2012 concerning over-indebtedness, to repay the amount due in accordance with its actual economic resources. In this case it is the judge who establishes the payment in full and in writing, even if the bank does not agree, especially if it is clear that the subject has no other means of settling the debt.
Like any other crime, because this is actually the case from a legal point of view, even the failure to repay a loan can be time-barred thanks to the law 2946 contained in the Civil Code.
Prescription of debts due to personal payday loans
The prescription of debts due to personal payday loans not paid within the terms set by the contract is a more unique than rare event. The exceptional nature of the occurrence of this circumstance is partly due to the long period of time that must elapse, it is a good 10 years from the moment in which the creditor turns to a court and protrudes a regular complaint, but above all to the fact that during this decade, the debtor must not have received any communication from the institution that disbursed the loan regarding the return of the same.
In fact, every time a notification is received in this sense, the count is reset and the time limit for the prescription is delayed by a further 10 years, provided that further communications do not occur in the meantime.
At this point, the bank or any other creditor institution loses any right to claim back what they lent. As can be easily deduced from these data, the prescription of an unpaid debt does not occur very often as it is unlikely that a creditor forgets a debtor or fails to send them any communication for such a long period of time.
With regard to the time required for the prescription, the loans requested from a financial institution are an exception, which is generally addressed because it is more elastic and faster than the traditional (and even more economic) banks, especially in the granting of small loans.