Unpaid loan: what do you risk?
Do not pay a loan: risks and consequences for the holder and guarantor
What happens to the holder of an unpaid loan, and possibly also to the guarantor? And what are the consequences? Two questions that you must ask yourself before entering into any type of loan, regardless of the duration or its amount.
In fact, if the loan is not paid, the process to which it can go is always the same, with few differences dictated by the internal policies for the management of the outstanding debts of each bank and financial institution (see also Bank loan characteristics ).
What happens if I don’t pay the loan?
Banks and finance companies have different timing and tolerance levels, before starting to send reminders and perform other actions. The banks are a little more tolerant, that is they have longer times, going, on average, over the third missed consecutive payment (or 90 days).
The financials are stricter, and normally after the second, or at most the third non-payment, they trigger the relevant procedure to obtain payment.
In both cases there is no mention of non-payment before at least 45 days have passed due to a question related to the functioning of the system and notifications. Here too, however, with smaller companies, this practice can jump, as there is more direct and punctual control. Therefore, once the number of delays accumulated for the bank to request a reminder action, the practice would lead first to the sending of a letter-based reminder, which is sometimes preceded by a phone call from a manager of the specific section (especially for the banks), and then secondly the report to the CRIF.
However, normally both actions are activated in an almost contemporary manner. The number of reminders and the forms with which they are communicated instead are chosen by the different banks or financial institutions (normally the banks dwell a little longer before turning to the debt collection companies).
Once the first phase has been surpassed, the creditor company turns to one specializing in the collection of outstanding debts, also here with different procedures and intentions: the banks to obtain the payment of the loan and not having to record them in bad debts, while the financial ones to liquidate quickly a practice now at a loss and moving forward.
At this point, a phase of reminders starts again (of various types), up to, if necessary, the injunction, through legal action, and consequent obtaining the attachment of a fifth of the salary or pension or of movable or immovable property to find satisfaction of the credit.
What happens to the guarantor?
A guarantor does not have a comfortable position.
In fact, not being satisfied by the debtor, the bank, financial company or collection company, he will directly address him, meeting the same exact consequences foreseen for the principal debtor if he does not fulfill his obligations, including reports in Crif ( see Acha Crif and Central Risks ) or injunctions, foreclosures, etc.
Consequences of reporting in Crif
As long as one’s name remains in the system, then there is no possibility of obtaining new funding (remember that the maximum length of stay in the system is 36 months and not 5 years as for protests). However, numerous reports put the banks in a state of alert, which often makes them deny a loan simply because, at that point, considered too risky.