Expiration of loan 2019 – when does the bank have to let go?Uncategorized
A bank loan or a loan from a loan company expires after three years. How to calculate this date? When can you cite a loan limitation period ? How can banks and companies prevent limitation?
Expiration of the loan – the person who granted the loan decides
The loan and loan granted by the entrepreneur are barred after 3 years. It results from art. 118 of the Civil Code – these are claims related to running a business.
For the adoption of a three-year limitation period, it does not matter whether the borrower (borrower) is an entrepreneur or a consumer. It is important that the lender (lender) granted a loan (loan) in connection with his business activity.
The situation is different in the case of loans in which the lender is e.g. a family member. The loan repayment claim is then not related to the business activity and there is another, longer limitation period – 6 years.
Limitation of credit and loans – terms:
3 years – the bank expires
3 years – the loan limitation period for the loan company
6 years – the limitation period for the loan from a person not conducting business activity
Expiration of credit for each installment calculated separately
Knowing the limitation period (3 years or 6 years) is not enough. You still need to know how to calculate this date.
Most loans and credits are to be repaid in installments. The annexes to the agreements are detailed schedules, including the date of repayment of individual installments. How does this affect the loan aging period ?
Limitation of credit and termination of the contract
If the loan or loan is not repaid, after several calls and warnings, the contract is usually terminated. The effect of the notice is that the entire amount becomes due – the repayment schedule ceases to apply, the entire amount borrowed and the outstanding amount must be returned once.
In this case:
installments that were due before the contract was terminated – they expire separately;
installments, which according to the schedule were due in the future (after termination of the loan) and became immediately due – they expire at one time, from the day on which the entire loan had to be repaid after giving notice.
End of limitation – at the end of the year
The rules for calculating the limitation period have changed since July 9, 2018. The changes have a big impact on how to calculate the limitation period for a loan. The principle that the claims of banks and loan companies have expired after three years has not changed. However, the method of calculating the end of the limitation period has changed. The effect is that in some cases the loan will be time- barred not after 3 years, but almost after 4 years. Why? Because the end of the limitation period has been moved to the end of the year.
After the changes in July 2018, the limitation period ends on the last day of the calendar year (i.e. on December 31). It is therefore a similar principle as in the case of limitation of taxes. This rule does not apply only if the limitation period is less than two years – but we do not have to do it with an exception, because bank loans and loans from companies have a three-year period.
The limitation period ends on the last day of the calendar year
Importantly, the new rule that the limitation period ends at the end of the year also applies to contracts that were concluded before July 2018, if on July 9, 2018 the claim was not yet expired.
Interruption of limitation periods by banks and loan companies
Banks and lending companies usually do not wait idly until the amounts due are barred. They have several ways to ensure that there is no limitation period for a loan or credit – they must interrupt the limitation period. After each interruption, the limitation period must be counted from the beginning.
How can banks and loan companies interrupt the limitation period?
Sending a request for payment shall not interrupt the limitation period. But debt recognition by the debtor – yes. Therefore, they may try to convince the debtor that he would, for example, recognize the debt. Debt recognition interrupting the limitation period is also the debtor’s admission that he is in arrears with payment, e.g. a request to defer payment. The limitation period will also be terminated as a result of filing a claim for payment or an application to the bailiff to initiate enforcement.
Are you a consumer Expiry of the loan will be automatic
Expiration of credit does not mean that it is automatically written off. However, it means that if a bank or loan company wants to recover expired debts in court, they will fail and lose the case.
If the debtor is not a consumer (only e.g. an entrepreneur), in order to cover himself with the limitation period, he must refer to the limitation period in court (plea of limitation). The court will not take limitation into account if the respondent debtor does not raise this plea.
It is easier for consumers, i.e. people who have taken out a loan or credit for a purpose unrelated to their business or professional activity. In their case, due to the changes that entered into force on July 9, 2018, the court must examine ex officio whether the claim is no longer barred. After the expiry of the limitation period, you may not claim payment against the consumer.
Only exceptionally, the court may, after considering the interests of the parties, not take into account the expiry of the limitation period for a claim against the consumer if it is required by equity. The court should then consider in particular:
the length of the period from the expiry of the limitation period until the claim is lodged;
the nature of the circumstances that caused the claim to be unsuccessful, including the effect of the obligated conduct on the delay of the claimant in pursuing the claim.