Can I go to jail for outstanding loans?
A non-bank loan is a product that allows us to bounce back in difficult life situations. However, it is worth remembering that unpaid debts will be a huge problem and the consequences of failing to pay a loan can be severe.
Unpaid debts in a loan company
The services provided are based on support at every stage of borrowing and professional service. Each loan must be repaid within a specified period, because the consequences of not paying the loan will overwhelm us. The first step in the event of non-payment of debt is to seek a friendly settlement and find a solution to your problem.
The consequences in this case will be: fees for sending a request for payment, calculation of additional interest for late payment, charging the debtor with the costs of sending paid reminders or other costs in connection with the steps taken by the lender.
Further consequences of loan defaults
The next step is to transfer the debt to a debt collection company that will collect the debt. This is the last moment of a friendly settlement. In this case, the debt can be split into installments, and if no agreement is reached, the matter is referred to a bailiff.
Bailiff proceedings are initiated, which may result in the seizure of property.
Unpaid debts and the police
In this case, no regulations indicate the possibility of calling the police. This can only happen if the loan was incurred due to fraud or fraud. You will not go to jail for an unpaid loan, however, debt-related situations can lead to imprisonment. They mainly concern extortion, court waivers, fraud, etc.
It is worth taking care of your interests from the very beginning. If we want to incur debt, we must precisely define our financial possibilities, including them in the given loan amount. An interesting solution will be to take out a loan in installments. It will burden the budget to a lesser extent and allow for a gradual repayment.
In any problems with repayment, it is worth contacting the lender who will indicate possible solutions. Instead of avoiding repayment and counting on debt being barred, the best option would be to contact the loan company and look for solutions. Failure to pay will lead to further problems that will have unpleasant consequences for the debtor.