What is the statute of limitations on credit debt. What is the limitation period for credit debt
During periods of socio-economic crises, the number of delinquencies in credit obligations always grows. Enterprises are closing down, wages are falling, tariffs and prices are rising. These and other reasons are able to once stably earning people a strong crush in life.
Credit organizations, as a rule, have little interest in the problems of debtors. In case of violation of the loan agreement, banks can go to court. However, it is unlikely that employees of credit and collection organizations will say that there is such a thing as a statute of limitations on credit debt. Let's analyze the main nuances.
Definition
The credit limitation period is the time that is given to lenders to return their funds by legal means. If he left, then no one has the right to demand him. Subdivided into:
- Statute of limitations (pre-trial recovery).
- The statute of limitations on credit debt after court (recovery of enforcement proceedings).
We will analyze each of the concepts in more detail.
The term of pre-trial recovery: concept
The limitation period for credit debt is the time when credit organizations have the right to sue debt collection. You need to know that only bailiffs by court order have the right to describe property, block bank accounts. Sometimes some collectors take advantage of people's financial illiteracy and illegally threaten such actions. Some of them get down to business. Let's say that such actions are criminally punishable.
3 years - limitation period for credit debt
The credit limitation period is three years. It is prescribed by law. However, there is an obvious flaw in the norm: it is not indicated from what time it should be considered. In addition, there is also the concept of interruption, when certain actions actually annul the statute of limitations. This gave rise to various manipulations not only in words, but also in judicial acts.
It is paradoxical, but according to one legal norm, absolutely opposite decisions are made. If courts and lawyers cannot figure out exactly when the statute of limitations for credit debt begins, how can people who do not know jurisprudence do this? We will try to explain in a reasonable way the correct point of view, clarifications on which were given by the highest court - the Supreme Court of the Russian Federation.
At what point is the statute of limitations calculated
So, the statute of limitations on credit debt is determined by the Civil Code of the Russian Federation at 3 years. Everyone considers individually:
- From the date of termination of the loan agreement. This version is usually adhered to by employees of banks and collection agencies. For example, if a citizen took a loan for 3 years in January 2015, then the limitation period for the entire amount of the delay under the contract will end, according to this version, in January 2021.
- From the date of default on credit obligations - this is the position of most courts, which is also reflected in the decision of the Supreme Court of the Russian Federation.
- From the date of contact with the bank, including a telephone conversation.
Calculation example
Let's look at an example. Suppose a citizen has entered into a loan agreement with a bank for 5 years in January 2010. In March 2013, he lost his job and, as a result, could not pay. As a result, huge penalties and fines came in for delinquency, which are several times the amount of the principal debt. The borrower did not agree with this and decided to stop all payments, which is not so rare for our country. The last payment occurred in March 2013. From this moment, the statute of limitations is calculated.
For each payment - an individual term
The Supreme Court of the Russian Federation explained that the statute of limitations is calculated separately for each payment. Let's get back to our example. Recall that in March 2013, the borrower stopped paying for its obligations. The term of his contract ends in January 2015. Thus, in March 2016, not the general statute of limitations for the entire contract ends, but the term for the payment, which was to be made in March 2013.
You will have to finally sleep peacefully only after January 2015, when the deadline for the last payment ends. If the bank sues in the last month, say, in December 2015, then it will be able to recover only the amount of delay for one month.
Credit cards
We will analyze the statute of limitations for credit card debt. When concluding an agreement, there are no mandatory payment schedules. That is, the borrower himself can spend money from a credit card on any day, and then also pay off the debt any day. Moreover, the contract does not indicate how long the payment will arrive. The limitation period is calculated on the last payment. As a rule, banks give a grace period that is not subject to interest. After its completion, the statute of limitations on credit cards is calculated if the borrower has never paid under the agreement.
Termination: truth and fiction
Interruption is the time when the statute of limitations is canceled. It is associated with official debt recognition by the borrower. For example, 2.5 years have passed since the last payment, but the citizen fully recognizes the debt, does not refuse it. It is enough to put any minimum amount on the credit account, and the three-year limitation period will begin to be calculated again.
Many mistakenly believe that any contact with a bank on a loan will invalidate the three-year limitation period. Therefore, some purposefully hide, do not pick up the phone, so as not to contact the bank employees. This is a fallacy that collectors themselves actively support. Interruption of the limitation period occurs when the borrower agrees to the debt. This can only be confirmed by real actions: payment, a statement of delay, etc.
Bailiffs' statute of limitations on credit debt
If the court was still there, then in this case the bank's requirements have a time limit. Let us analyze in more detail the statute of limitations for collecting credit debt, if the court nevertheless passed. After the court ruling, enforcement proceedings are instituted by the bailiffs. A bailiff is assigned to each case. There are legends about how busy they are. In large cities, this is several thousand cases per employee. Naturally, in this state of affairs, there can be no talk of any effective recovery.
6 months - term under writ of execution
The term on the writ of execution is 6 months. During this time, the bailiff must find the property and take measures to recover. After this period, enforcement proceedings may be closed if:
- The debtor has no property.
- The debtor is hiding, it is impossible to find.
- The bank refuses to keep the described property: televisions, tape recorders, etc.
After a six-month period, the bank has the opportunity to re-apply to the federal bailiff service within three years to recover the debt. And so on ad infinitum. The law does not limit the number of appeals. If a trial has taken place, then the creditor may demand debt through bailiffs all his life.
Deadline - forgiven a loan?
It is considered a delusion that after the statute of limitations the debt is forgiven. In fact, there is no possibility of judicial recovery. However, the right to claim is fully retained. In other words, if desired, lenders can remind a citizen of their duty all their lives. In practice, of course, this rarely happens, but there are excesses everywhere. The Collector Act, which was issued in 2016, systematized a little communication between the debtor and employees of credit and collection organizations. Now they should be polite, not threaten, not use violence, call no more than four times a day, strictly on weekdays, meet only with the consent of the debtor.
Deadlines have passed: what can banks and collectors do?
What can employees of credit organizations do if the statute of limitations has expired? Upon presentation of an application, the courts are not entitled to consider such disputes. Consequently, the bailiffs will not start writ of execution, come and describe the property. It is important to know that this is only the right of bailiffs by court order, no collectors and bank employees have the right to enter the house and alienate property. Such actions are criminally punishable.
The only thing collectors and banks can do is call for conscience and exert psychological pressure. The more citizens know their rights and legislative acts, the less unpleasant conversations they will have in the future.
Before applying to the bank for a loan, the future borrower plans a debt repayment period. Unfortunately, this time is sometimes violated due to circumstances beyond the control of the borrower. In such cases, the bank may bring claims to the debtor, but in order to satisfy them in court, the statute of limitations for the loan must be observed.
How is determined
The limitation period is the period during which a bank or other financial organization may put forward a requirement to a borrower to pay off a debt. For a bank loan, it is 3 years. But it can increase or decrease depending on many nuances.
The limitation period for credit debt is calculated from the moment of violation of the rights of the creditor under the loan agreement. This requirement is provided for by the Civil Code of the Russian Federation, Art. 200, part 1. A more precise definition of the beginning of the calculation is given in the terms of the contract.
If there are additional obligations (interest, fines), the limitation period for making claims on them shall expire at the same time as the principal debt, regardless of when these types of debts were accrued.
It starts calculating from the moment of non-payment by the borrower of the next payment. If payments have not been made for more than 90 days, the financial institution has the right to demand a lump-sum repayment of the entire amount of the debt under the contract. Calculation in this case starts from the moment the requirements are presented.
If the request of the bank indicates the time for fulfillment of the obligation to repay the debt, then the prescription for the loan starts from the moment the date indicated by the bank expires.
The limitation period for a loan, which must be executed within a certain time, is calculated taking into account some nuances. According to the provisions of the Civil Code of the Russian Federation, the time for fulfillment of obligations for which is determined, is calculated from the end date of this time. But the period should not exceed 10 years from the moment obligations arise.
Does the bank have the right to demand repayment of the debt after the deadline
According to Art. 200 of the Civil Code of the Russian Federation, the time for filing a claim is calculated after the termination of the agreement. For example, if you receive a loan on January 15, 2010 for 6 years, the incidence period will be calculated from January 15, 2016, regardless of the date of the last installment. But in practice this applies only to “ordinary” loans. The latter does not include obtaining loans through plastic cards in the form of an overdraft (small loan). But even if a court makes a decision on calculating the statute of limitations on a loan from the moment the contract expires, this decision can be appealed against by appeal.
If the borrower enters into official negotiations with bank employees by sending a letter in advance with a request for deferred loan payments, the statute of limitations may be significantly reduced. When a bank sells a contract to collectors, it may affect the calculations by the customer making even one payment to pay off the debt to the agency. It is better to consult with our lawyers on these issues.
According to the law, a bank may make a claim for a refund within 10 years after the termination of the agreement - then the client may refuse to repay the debt. When the bank continues to send notifications of non-return of the debt in writing, by phone or by e-mail, the client can withdraw the permission to use his personal data by writing a corresponding application.
How to protect yourself from collectors
Even after the expiration of the limitation period for a loan on the basis of an agreement sold by the bank, special agencies (collectors) can present claims for repayment of the debt. They do this both without assignment and with assignment in favor of a collection agency of the right of claim in favor of a third party. Typically, such agencies take tough measures, including intimidation, to collect debt. In such cases, do not panic, but tell collectors the illegality of their actions to collect debts in connection with the expiration of the statute of limitations on the loan. You can also protect yourself from unlawful actions of collectors by writing a statement to law enforcement agencies (police or prosecutors).
When threats from collectors continue, you should record their fact and write a statement to the police or court. Your confidence in your rightness will also have a sobering effect on collectors working on the edge of the law.
Our lawyers will be able to help you understand all these issues. They will draw up the necessary complaints or a lawsuit in court and will restore your rights and legitimate interests in case of gross violation.
Most of us use the services of banks (in particular, take loans), and, unfortunately, it is often difficult to repay them. And this leads to numerous problems - up to threats from bank representatives and loss of property. The law in this case does not always side with the creditor and provides for it some restrictions on the right to present claims to the debtor. To understand how realistic it is to get rid of debts to the bank, whether it will write off debt, if you avoid contacts with its representatives, how many years to do it and whether it is worth it at all, it is important to have information about the statute of limitations on the loan.
What is a loan limitation period?
By law, a bank is required to write off credit debt if it is deemed to be uncollectible. And this happens at the end of the limitation period, which means the time allowed to apply for the protection of their violated rights. This is precisely the statute of limitations on the loan, that is, the period during which the lender can recover the loan debt. After this period, the bank loses the right to demand from the individual to repay the loan in court.
But there is an important condition, and it must be fulfilled. There should not be any interaction between the debtor and the creditor during the period of credit prescription. Thus, the borrower can get rid of credit debt if, during the period of limitation, he avoids contact with the bank, does not answer his calls, does not visit branches, does not sign letters and does not make payments. Then there will be a chance that the debt will be canceled.
Credit Limit
The period during which the bank or other lender can recover the loan debt through the court, that is, the total statute of limitations on the loan, is 3 years. The Civil Code also provides for a 10-year limitation period. The main difference in the application of these indicators is the determination of the reference date. For each late payment, the period is calculated separately.
It is worth mentioning the statute of limitations for the guarantor, as special rules apply to him. If, upon receipt of a loan, a guarantee was issued by an individual as a guarantee of its repayment, in case of evasion of repayment of the debt, bank representatives will request to reimburse it to the guarantor. But in this case, the rights of the creditor are narrowed. The term of the guarantee is limited to the period specified in the relevant agreement. If it is not in the document, the obligations of the guarantor are valid for a year after the expiration of the loan agreement. That is how much time the law gives the bank to sue the guarantor.
When does the time start?
If the obligation sets the deadline, as occurs, for example, on loans, the Civil Code stipulates that the start of the limitation period falls on the date the deadline ends. Therefore, the courts are mostly inclined to believe that the three-year statute of limitations on a loan begins on the day following the last payment. In other words, after an individual last made a deposit of money into a debt account, the bank has 3 years to demand a return of the debt.
If during this period there is contact between the lender and the borrower, for example, even the smallest amount will be paid, the debtor will sign a receipt of a registered letter of debt, visit the bank’s branch or his employees will contact the borrower by phone, the statute of limitations will be reset, and its countdown will start again . At the same time, the transfer of debt to collectors does not affect this process, and when it occurs, the statute of limitations continues, which began with the last payment or contact with the bank.
As for the 10-year limitation period, it is calculated from the date the loan was issued. Thus, regardless of the date of the last repayment of a debt or other interaction of an individual with a bank, 10 years after receiving a loan, the lender can no longer claim its return by a court decision.
Tip:you should not expect that the bank’s representatives will calmly wait for 3 years from the last payment on the loan or 10 years from the date of its issuance, and are ready to put up with the loss of funds that you owe. They will use all kinds of ways to establish contact with you, which will lead to an interruption of the statute of limitations. Therefore, it is worthwhile to find a way to pay off debts, rather than counting on their cancellation. One option is to pay off the debt with a new loan. If you decide to use this method, we recommend that you read the information on how.
The consequences of the expiration of the limitation period
According to the Civil Code, when a 3-year period ends from the date of the last payment or 10-year from the date of loan processing, the bank can no longer claim the property of the debtor, including debiting the account without the consent of its owner. You can no longer sue the debtor. But banks are not in a hurry to recognize as hopeless and write off such debts, because the law does not oblige them to make such decisions.
It is important to understand that if you even managed to avoid contacts with the bank during the statute of limitations, you should not expect that the problems will end there. Even if you get rid of the risk of getting a court decision to recover a loan, you need to be prepared for other negative consequences:
- A serious blow to credit history. Information that you escaped liability for an unpaid loan will certainly become available to potential lenders, and it is unlikely that in the future it will be possible to take a new loan. Banks will not be interested in such a risky client.
- Debt repayment. The Civil Code provides that repayment of loan debt is possible even after the expiration of the statute of limitations. Its countdown starts anew if the debtor recognizes the debt and this will be recorded in writing. Although the bank cannot recover the loan debt through the court, this does not mean that attempts to return the money will stop. Most likely, they will continue to call you, write with requirements to pay off debts and may turn to collectors. It even happens that the bank sues the debtor after the expiration of the limitation period, and there is no guarantee that the judge will pay attention to this. Therefore, if this happens to you, apply for a statute of limitations.
- Fraud Accusation. By taking active steps to evade payment of a loan, the debtor risks falling under the signs of a fraudster, provided for by criminal law.
When can a debtor be recognized as a fraudster?
If, after receiving a loan, you do not make a single payment to your debt account and avoid contact with creditors, they may initiate a case to recognize you as a fraudster. Section 159.1 of the Criminal Code provides for liability for credit fraud.
A credit debtor can be recognized as a fraud, that is, a criminal, and prosecuted if he committed the following actions:
- When applying for a loan, he provided knowingly false or false information.
- He deceived a large sum (over 1.5 million rubles).
- Using false information to get a loan, he took possession of a particularly large amount (more than 6 million).
The following types of liability are provided for such actions:
- Fine.
- Mandatory work.
- Correctional work.
- Restriction of freedom.
- Forced work.
- Arrest.
- Deprivation of liberty.
The specific punishment depends on the circumstances of the case, in particular on the amount of the debt, the presence of collusion of a group of persons and the use of official position. But even if one succeeds in avoiding the prison and getting a milder sentence, the mere presence of a criminal record will spoil the biography and lead to numerous difficulties in finding a job and applying to different authorities.
As practice shows, the risk of being prosecuted for fraud is reduced in certain circumstances:
- The loan amount does not exceed 1.5 million rubles (we are talking about the net amount of funds received excluding penalties, fines and interest).
- The debtor made payments, that is, when receiving a loan, he had no intention of taking possession of the funds and not returning them.
- The limitation period for the loan has ended.
- The loan was secured by property (apartment, car, etc.).
- The amount of income in the certificate, which was provided for obtaining a loan, is slightly overstated.
- A written notification of the debtor was sent to the bank that he had material problems and that immediately after solving them, he undertakes to continue the return of credit funds.
To summarize
A loan limitation period is a period of time that is given to a bank or other lender to present a claim to a debtor through a court. After this period, it is no longer possible to resolve the issue of the return of borrowed funds in court, that is, the debt is canceled. The limitation period from the day after the last payment on the loan is 3 years, and from the date of execution - 10 years.
If there is contact between the debtor and the bank, for example, visiting a branch, making a phone call or making even a modest amount on a debt account, the statute of limitations is interrupted and a new countdown begins. It is difficult to avoid such contacts, but even if you fail to interact with the representatives of the lender for all 3 years (10 years), the problems will not end there. The persecution is likely to continue, and the bank may even institute proceedings to recognize the debtor as a fraudster.
You got a loan and for some time your financial capabilities allowed you to repay it on time. But unforeseen circumstances have come and you cannot pay the loan. This situation is familiar to many borrowers. In such a situation, a long period of waiting for action from the bank. Will he demand debt payment? How long can a bank require a borrower to repay a loan?
How many years is a loan limitation period?
The law provides for a limitation period of 3 years. During this period, the bank may require the borrower to pay the debt through the court. At the same time, it is important to understand at what point the loan statute of limitations begins to flow.
When does the loan statute of limitations begin to flow?
Unfortunately, a single position of the judiciary on this issue does not exist.
First option. The most common point of view is that the statute of limitations on a loan begins to flow from the moment the last payment under the loan agreement was made.
Example. You issued a loan on 02/01/2010, and your last payment was made on 07/05/2011. In this situation, the statute of limitations on the loan expires July 5, 2014.
The second option. Some courts believe that the statute of limitations on a loan begins from the moment the contract expires.
Example. The loan agreement was drawn up on February 1, 2010, the last payment you should have made on February 1, 2014. Under these conditions, the statute of limitations on your loan will end on February 1, 2017.
Moments that affect the course of the statute of limitations on a loan
It’s worth remembering that it’s not enough just to wait 3 years for your loan to expire. It is important that during this period you do not take any actions aimed at paying off the debt. For example, if you send a letter to the bank asking for a restructuring of a debt or the like, then such an action may interrupt the statute of limitations on the loan, and it will begin to flow first from the moment you send the corresponding letter.
What to do if the bank sues you after the loan expiration date?
If the bank is late in filing a claim, then you must declare in court that the credit institution has missed the specified period and the need to refuse the bank in the lawsuit.
Note! The expiration of the statute of limitations on the loan does not mean at all that the bank will not be able to write letters to you, make calls to repay the loan debt. Your lender, even in such a situation, has similar rights.
In connection with the crisis, the number of people unable to repay loans taken in more prosperous times has increased. There are frequent cases when it comes to court. This is where the borrowers begin to be interested in the question: what is the statute of limitations on a loan at a bank and whether a credit institution can demand a debt after this period.
The concept of limitation
The limitation period (let's call it SID) is the time during which the bank has the opportunity to sue the negligent borrower.
It is worth considering that the court will accept the lawsuit from the credit institution regardless of whether the deadline has expired (Clause 1, Article 199 of the Civil Code of the Russian Federation). Therefore, if in your opinion the time of the bank has passed, you should definitely declare this before the decision is made.
Statute of limitations on a loan
Some borrowers do not know how long the statute of limitations for the loan, others think that the statute of limitations is counted from the moment the loan agreement is opened. This is not true. P. 1, Art. 200 of the Civil Code of the Russian Federation states that the LED begins to go from the day when the bank found out about the delay. In clause 2, it is indicated that for obligations with a specific deadline, the LED begins to flow at the end of this period.
It should be noted that until recently, even the decisions of the judges on this issue varied: sometimes they considered the deadline from the date the contract expired, sometimes from the date of the last payment, and sometimes from the day the official letter was sent to the borrower to repay the delay.
The Resolution of the Plenum of the Armed Forces of the Russian Federation No. 43 of September 29, 2015 put everything in its place. It states that, based on the meaning of Art. 200, the countdown of the statute of limitations for the debt, which under the contract must be paid in parts, begins to be considered separately for each such part. That is, the statute of limitations for late payments, interest, penalties, etc., is calculated separately for each unpaid installment.
When does the credit limitation period begin? Example: under a contract, the loan repayment date is every 12th day. The client stopped making payments on November 12, 2016. In this case, the LED for the first late payment will begin on November 12, 2016, for the second - December 12, 2016, for the third - January 12, 2018, etc.
If the bank filed a lawsuit only to recover the main debt, then the LED for the remaining payments (for example, to pay a penalty) continues to go. At the same time, after the statute of limitations on the basic requirement (Clause 1, Article 207 of the Civil Code of the Russian Federation), the term for writing off the debt on the loan expires on additional claims (i.e., forfeit, interest, collateral, etc.). But if the agreement determined that interest is paid later than the main debt, then the statute of limitations for them is considered separately and does not depend on the end of the LED for the main loan amount.
Pause and Break
Do banks write off debt on loans? LED current pauses:
- if force majeure prevented the filing of the claim;
- as a result of a legal moratorium (i.e. deferral);
- if the debtor is in martial law;
- upon suspension of the law (or other legal document) governing these relationships.
If the parties resorted to an out-of-court settlement of the dispute, the term shall be suspended for the duration of this procedure (or for six months if there is no term). From the end of the reason for the suspension, the statute of limitations will continue.
Is it possible to write off debt on a loan or take a break? A break in the flow of LEDs occurs if the borrower commits acts that indicate that he recognizes the debt (Article 203 of the Civil Code of the Russian Federation). In accordance with the Resolution of the Plenum of the RF Armed Forces No. 43, such steps may be:
- recognition of the claim;
- amendment of the contract, from which it follows that the borrower accepts the debt;
- client's application for changing the terms of the contract (for example, deferred payments);
- reconciliation statement of settlements, sealed by the signature of the bank.
But if a person simply answered the bank’s claim and did not indicate that he was responsible for this debt, then such an answer is not considered a recognition, so there will be no interruption.
Also, if the client recognized only part of the debt, including making a periodic payment, this does not mean that he agrees with the debt as a whole. That is, this contribution cannot be a reason to interrupt the flow of LEDs for other contributions.
When the steps taken to recognize the debt were taken by the representative of the borrower, the LED is interrupted only if he had the necessary authority (Article 182 of the Civil Code of the Russian Federation). If the debtor simply does not take any action and does not sign anything, then the statute of limitations is not interrupted!
Please note that after the break, the LED does not continue, but starts anew, that is, the time that has passed before the break will not be counted in a new time!
Example: the borrower had to pay the next installment on 04/15/2016, but was late and didn’t pay for several months. Thus, from 15.04.2016, the limitation period began. On September 15, 2016, a person came to the bank and wrote a statement of installment payment, but then again he stopped paying. In this case, the three-year LED will begin anew from September 15, 2016.
Important! With all the suspensions, the limitation period (Clause 2, Article 196 of the Civil Code of the Russian Federation) cannot exceed 10 years.
Can a bank claim debt after the statute of limitations
Can a court write off a loan debt if the statute of limitations has expired? In most cases, the bank does not wait for the deadlines to pass, and sues in a timely manner. But even if the LED has already passed, the borrower is unlikely to be left alone. Probably, the employees of the credit organization will call, come, write letters, try to put pressure on guarantors or relatives. But, most likely, he will not sue the bank anymore, since if the debtor declares the past limitation period, the court will still refuse to initiate proceedings.
When the lender decides that the debt is unlikely to be repaid, he may give up the problem loan to the collectors. It's no secret that the methods of the latter often go beyond what is permitted, which is a lot of eloquent reviews on the Internet.
There are many articles on the network about the need to allegedly withdraw consent to the processing of their personal data, and they will lag behind the borrower. In fact, it will not do anything. According to Art. 9 of the Federal Law No. 152, even with a recall, the bank or collectors have the right to continue processing personal data if it is necessary to exercise their legal rights and interests. But few people know that not so long ago, Federal Law No. 230 was adopted, which clearly stipulated to whom, when and how to “get” the debtor.
So, the collector does not have the right to come to the borrower more than 1 time per week and call more often:
- 1 time per day;
- 2 times a week;
- 8 times a month.
It is forbidden to threaten, use force, harm health or property, mislead a person or put pressure on him, etc. It is forbidden to report debt to third parties, to disclose information about the client or his debts.
Important! By law, the borrower may refuse to communicate with the lender or collector. To do this, you need to send him a statement by registered letter or through a notary public, or simply hand it on receipt.