Delaying or skipping the payment of one or more installments of a loan has consequences for the contract holder, compromising the possibility of obtaining other loans in the future. Carefully reading contracts before signing up allows you to know in advance the penalties provided by banks and credit institutions and all the obligations to which the debtor must comply.
What happens if the installments are delayed or not paid?
The first measure adopted by the banks in the event of delays or non-payment of one or more installments involves sending a reminder notice, and immediately after the application of default interest. In fact, the debtor is technically defined as ” in arrears ” only after sending an official communication (sent by registered mail to / ro e-mail) that indicates the irregularity of payments.
The debtor’s default payment provides for the application of default interest, or an increase in the rates already provided for by the loan. The amount of default interest is set by the credit institutions themselves through specific regulations, which must comply with the directives required by the anti-usury law. For 2018, the threshold of 8% was set higher than the rates set by the ECB.
When does the report arrive as a bad payer?
If, despite the reminders sent by the bank, the client does not regularize his debit position within the terms set by the bank (on average within 15 days), the report is reported as a bad payer in the SIC, the Credit Information Systems and immediately afterwards to the Central Risk Office. Bank of Italy.
Credit Information Systems are like databases, which can be consulted only by operators in the sector, where useful information is collected to assess the level of creditworthiness of customers or the ability to support the payment of repayment installments and meet payment deadlines.
The registration in these “black lists” is variable, from a minimum of 6 months up to a maximum of 36 months depending on the case. The cancellation of the name occurs automatically, at the end of the established term.
How to avoid such reports?
The easiest way to avoid reporting as a bad payer is simply to meet the repayment installments. Calculating the amount of the installment before signing the contract and assessing the sustainability of the commitment made in relation to other expenses, already allows to evaluate the feasibility of the commitment taken.
In addition to this, it would be advisable to evaluate whether the signed loan provides for the adoption of solutions to manage payments with greater flexibility, for example: the possibility of skipping the installment in case of difficulty, of shifting the deadline, or even the presence of a insurance solution in the event of job loss, permanent disability or death of the contract holder.
Can a bad payer get another loan?
Once the deadline for reporting as a “bad payer” expires, a new loan can be requested. However, the financing solutions that can be aspired to will be limited and must offer guarantees to the credit institution. Possible solutions include:
- the assignment of the fifth : an indispensable requirement is to have a permanent employment contract. The possibility of deducting the repayment installment directly from the salary or pension is already a guarantee for the bank which, in the event of delays or complications, may use the accrued severance pay. This type of loan also includes the subscription of an insurance policy that will intervene in case of loss of work or death of the holder.
- The loan with guarantor : this solution provides for the intervention of a third person (guarantor or guarantor) to intervene instead of the holder in the event of late payments. The guarantor must sign the loan agreement and prove that he has a stable financial situation.