How to terminate a loan agreement? How to terminate a loan agreement with a bank quickly.
A large role in law enforcement and judicial practice is given to the regulation of legal relations in the field of lending. An important role is played by, inter alia, the consideration by the courts of cases on the termination of credit agreements. An analysis of the judicial practice of the Russian Armed Forces allows us to talk about the increased dynamics of the consideration by the courts of this category of cases in recent years.
Termination of a loan agreement - one of the ways to protect the right
As a rule, the purpose of terminating the contract is to maintain a balance of interests of the parties to the legal relationship - the bank and the borrower, and this action is an exceptional way to protect the right. For termination of the contract, violation of the obligations of one of the parties, which may be carried out as a result of circumstances independent of the parties, or as a result of refusal to fulfill them, is of legal importance. Termination of loan obligations, by virtue of Part 3 of Art. 453 of the Civil Code of the Russian Federation, is deemed to have come from the moment the court decision to terminate the contract came into force.
Change in circumstances (material conditions) that existed at the time of the conclusion of the contract with the bank, and from which the parties proceeded, in accordance with the provisions of Art. 451 of the Civil Code of the Russian Federation may be grounds for termination of the loan agreement. Significant in this case are circumstances that objectively impede the fulfillment of obligations by the parties to the agreement.
Since the bank, as a credit organization at the time of issuing credit funds, fulfills its initial obligations, after which a counter obligation to repay the loan by the borrower must be fulfilled, violations of the terms of the contract most often occur from the side of the borrowers. That is, the unfair performance of obligations or the refusal to fulfill them (to return money - the body of the loan and interest) are the basis for the possible termination of the contract.
Judicial practice in cases related to the termination of credit agreements does not speak in favor of consumers (borrowers). For the entire long-term period of consideration of litigation between borrowers and credit organizations related to termination of loan agreements due to changes in material conditions, only the only event was recognized as such - it was a default in August 1998. To date, a review of judicial practice shows that all litigation regarding the termination of loan agreements in which the plaintiffs acted as the plaintiffs, including where the circumstances of the 1998 default were the basis for the legal position, were not made in their favor.
The Court of Appeal in case No. 33-6973 / 2012 issued a ruling on the termination of the loan agreement. During the trial, it was found that the plaintiff, who was the borrower under the loan agreement, filed a claim with VTB 24 CJSC to terminate the loan agreement and assign the bank obligations to terminate the payment of payments under the agreement. The basis for the above requirements was that, according to the plaintiff, the material difficulties that had arisen for him for the current period of time prove a change in the material conditions that existed at the time the loan agreement was concluded. In this regard, the plaintiff points to the impossibility of fulfilling his obligations under the contract and asks to satisfy the claim.
The court, as follows from the case materials, found that this event (a change in the material situation of the plaintiff) is not an event that can be considered in the context of Article 454 of the Civil Code of Russia, and is not evidence of a change in the conditions that existed at the time of the conclusion of the contract. Based on the results of the judicial review of this case, a determination was made to leave the plaintiff's claims unsatisfied.
Method of protection against unfair performance of obligations
Often, borrowers, having not assessed their strength and ability to pay, received credit funds, are not able to pay obligations under the loan agreement. The consequence of non-fulfillment of contractual obligations is the legal ability of banks to resort to termination of the loan agreement using the sanctions provided for in the contract for civil violation (collection of fines or penalties). The courts in this case often do not consider the circumstances that were the reason for the violation of the terms of the contract, and take into account only the fact of the debtor's failure to fulfill his obligations to pay cash. Accordingly, the decision in such cases, as shown by the judicial practice on loans, is not made in favor of the borrower. Banks almost always receive claims.
Here is one of the typical court decisions in a dispute on the collection of credit debt and termination of a loan agreement, in which the court established that ZAO AKB Express-Volga appealed to the defendant (borrower) to terminate the loan agreement and collect the debt. In substantiating the claim, the plaintiff pointed out that the borrower, having received credit funds that were transferred to his account at the branch of JSCB Express-Volga CJSC, for a long time evaded fulfillment of contractual obligations, and therefore, according to the plaintiff, the latter arose the right to demand early repayment of the loan and termination of the contract. In support of his legal position at the hearing, the defendant stated that he had ceased to pay the loan in connection with the loss of work.
As a result, the court, having examined the materials of the case, made a decision in accordance with which the following were recovered from the defendant (borrower):
- the amount of the primary obligation under the contract;
- reimbursement of bank expenses;
- penalties for breach of contractual obligations;
- overdue interest
And the loan agreement concluded between the bank and the borrower was terminated.
Termination of obligations unilaterally
Termination of the contract does not mean that the obligation between the bank and the borrower is terminated. The borrower retains the obligation to repay the loan amount, interest on it, as well as the penalty for violation of contractual relations. In the event of a court decision on this, the borrower bears obligations until the full execution of this decision. As described in the clarifications of the Presidium of the Supreme Arbitration Court of the Russian Federation on this issue, if, in accordance with Art. Art. 310, paragraph 3 of article 450 of the Civil Code of the Russian Federation, the bank has every reason to believe that the borrower will not repay the amount of the credit line, the bank has the right to terminate its obligations unilaterally with all legal grounds for the receipt of counter obligations. Moreover, the penalty and interest on the loan to the bank must be paid for the entire period until the repayment of the entire loan amount. And from paragraph 8 of Information letter N 147 of the Presidium of the Supreme Arbitration Court of the Russian Federation, it is clear that when the contract is terminated in a judicial proceeding, the obligation relationship ceases only for the future period. (By the Presidium of the Supreme Arbitration Court of the Russian Federation in paragraph 1 of the Information letter dated December 21, 2005 N 104 “Review of the practice of application by the arbitration courts of the norms of the Civil Code of the Russian Federation ....... Article 453 of the Civil Code of the Russian Federation) Such a legal position is set forth in (Decision of the FAS of the East Siberian District of April 6, 2011 in the case of N A33-5284 / 2010, as well as the Decision of the FAS of the North Caucasus District of 02.10.2009 in the case of N A53-16893 / 2008). This example of applying the method of protecting a bank by its rights is a consequence of the borrower's default on its obligations.
Important to remember: based on the practice in criminal cases, malicious (intentional) evasion of repayment of accounts payable may entail the prosecution of the guilty person.
As the experience of judicial practice shows, a powerful financial and legal system, of which credit organizations and banks are a part, will be your ally in achieving the goals that you pursue by concluding loan agreements only if the parties maintain a balance of contractual legal relations. But often reality and circumstances dictate their own conditions for the development of situations in which you have to defend interests in court. In this case, your allies and assistants will be legal experts and lawyers.
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When concluding a loan agreement, the law provides for the possibility of its termination. The agreement terminates automatically subject to the fulfillment of credit obligations. That is, after repayment of the entire loan amount, the contract is considered terminated. However, in some cases, early termination of the loan agreement unilaterally by the bank or the borrower is possible. This process is quite complicated, but doable. The termination of the loan agreement must be carried out in the manner prescribed by law and agreement. A legal consultation will help to understand the features of the procedure and draw up an action strategy for each specific case. A consumer advocate will represent the interests of the court if the need arises.
CONCEPT AND ESSENCE OF THE AGREEMENT
A loan agreement is a document in which two parties enter into an agreement on the transfer of funds for temporary use. It defines the conditions for the transfer of the loan and the amount that the financial institution issues to a citizen or legal entity. The borrower, in turn, assumes the obligation to return the funds within the specified period and to pay interest for the use of money.
The procedure for concluding an agreement between a financial organization and a citizen is regulated by the Civil Code of the Russian Federation and the law on banking. The same documents also determine the termination of the loan agreement with the bank (procedure, conditions, grounds, consequences). According to the norms of the current legislation, the conclusion of the agreement provides for its execution in writing, with the mandatory signing of both parties - parties to the agreement. An indispensable condition for the legality of a document is voluntary signing, implying the consent of all counterparties to its terms.
The loan agreement must contain the following data:
- data of the agreement of the participants;
- loan amount;
- contract expiration date (final date of debt repayment);
- loan repayment procedure;
- purpose of using borrowed funds;
- annual interest charges - interest on the use of a loan;
- penalties for defaults;
- additional conditions.
In addition, the contract stipulates the conditions for early termination at the initiative of one of the parties or by concluding a general agreement.
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REASONS FOR TERMINATION OF A LOAN AGREEMENT
For lending agreements, there is a different procedure and termination conditions, other than, for example, termination of a gift agreement or employment agreement. The Law on Consumer Rights gives the right to terminate the loan agreement by the bank unilaterally, as well as by the person who took the loan, within 14 days from the date of conclusion. This applies to a loan agreement, and other types of agreements, for example, deposit. If it is supposed to terminate the loan agreement with the bank, judicial practice recommends a full repayment of the loan and payment of minimum interest (for the period of use of funds). With this option, prior coordination with a financial institution is not required.
Termination of the loan agreement is also possible in the event of insurmountable circumstances, which the borrower could not know at the time of signing the agreement. Such circumstances include, for example, a decrease in salary, the detection of an incurable disease involving financial costs of maintaining life. In this case, the bank may go to a meeting and terminate the existing contract, subject to the conclusion of another. This process may be in the form of restructuring or refinancing of a loan.
Termination of the contract unilaterally by the bank also takes place. It can be initiated by a financial institution in case of delay in payment of more than 90 days. This basis gives the bank the right to appeal to the court and collect debts by force. At the same time, all interest accruing during this period, fines and penalties, which are indicated in the text of the agreement, as well as legal costs associated with the conduct of the case, will be added to the loan amount.
In general terms, it can be said that a transaction can be canceled if the following reasons are present for terminating the loan agreement:
- one of the parties to the agreement substantially violates its terms;
- if there are cardinal circumstances that impede the fulfillment of the terms of the contract.
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LOAN TERMINATION PROCEDURE
Legislation regulates the termination of agreements by a number of normative acts. According to these documents, there are two methods for resolving the issue: a peaceful settlement and a trial. The stage of contractual resolution of the conflict is mandatory in any case.
In general terms, the procedure for terminating a loan agreement is as follows.
- Pre-trial decision. The borrower, who decided to terminate the contract at his request, must contact the bank with the appropriate statement. A sample application can be taken directly from a financial institution. If they refuse to issue it, then you can write a statement in free form. The text should indicate the reason for the need for termination, personal data, including contact phone number and mailing address, and a request for termination of the loan agreement. The application is made in two copies, one of which is given to the bank employee, and the second remains with the applicant with the bank's mark of acceptance. In case of refusal of the employee to accept the document, it can be sent by mail, by registered mail with acknowledgment of receipt. The bank is obliged to consider the application and make a decision, which must be communicated to the applicant in writing. In the case of a negative decision or no response from the financial institution, you can go to court.
- The statement of claim on the termination of the loan agreement. The petition is filed with the district court at the place of residence of the plaintiff or at the location of the defendant (in this case, the bank). A sample application can be obtained from the judicial office. The application must include personal data, describe the reasons that prompted the termination of the contract, the circumstances of the case, as well as the bank's refusal to resolve the issue peacefully. Copies of the application must be attached, in the amount that the number of participants appears in the case. You must also provide a copy of the loan agreement, confirmation of the force majeure of the conditions on which the request is based, correspondence with the bank, photocopies of personal documents and receipts of payment of the state fee (according to the norms of Article 333.19 of the Tax Code in the amount of 300 rubles). The statement of claim for termination of the loan agreement may be submitted in person or through a representative. The latter should have a notarized power of attorney, giving him the right to represent the interests of the plaintiff in court. A legal consultation will provide an opportunity to draw up a statement of claim to terminate the loan agreement in full and in accordance with the requirements of the law. The judicial practice of terminating a loan agreement with a bank shows that it is quite difficult to get a positive decision on the suit without the help of a professional lawyer.
- Trial. To write a statement of claim to terminate the loan agreement and file it with the court does not mean winning the case. You must be present at each hearing. Attendance at court hearings will make it possible to state and defend one’s position. It will be good if the plaintiff takes the help of a professional lawyer, which will significantly increase his chances of winning the case. This is because banks have a whole staff of lawyers who are well versed in bank disputes. This is necessary if the plaintiff is not able to attend for any reason. A professional lawyer will be able to represent his interests in court in the best possible way. Legal advice on these issues in our company is free.
After consideration of the case, the court makes its decision, which is subject to execution after entry into legal force. Practice shows that it is very difficult to win such cases, and the process itself requires financial and physical expenses.
Having lost the ability to make loan payments, many debtors are faced with the problem - how to terminate a loan agreement with a bank? You can implement the operation in the legal field, based on the information specified in article 450 of the Civil Code of the Russian Federation and its paragraphs. It should be understood that the gap is not always a way out of the situation, the alternative is debt refinancing.
Is it possible to terminate the contract with the bank unilaterally
It should be clarified that the termination of the contract is mainly carried out on the mutual initiative of the parties, but quite often the bank does not agree to such a move. Solving the problem of how to terminate a loan agreement with a bank unilaterally, you should study the above article from the Civil Code.
If the bank violates the obligations specified in the contract, the borrower must file a lawsuit with the court and it will be satisfied if:
- A financial institution strictly violates the obligations of the contract, refusing to terminate the loan agreement by mutual agreement;
- The bank has increased the interest rate;
- The borrower has lost the ability to make payments (loss of work, disability).
Terminate a loan agreement with the bank unilaterally through litigation can customers whose rights have been violated. However, one should not rush to go to court, initially it is required to notify the bank 30 days before the lawsuit is filed, in addition, it is recommended not to bypass the financial institution and try to solve the problem with the help of a credit inspector first.
Terminating a loan agreement with a bank unilaterally the next day or later does not mean that the debt has been forgiven. The borrower will have to make payments, however, at a lower percentage or in a longer period, which reduces the amount of the monthly payment and allows the client to reduce the financial burden.
To whom and when can I terminate a loan agreement with a bank
If the reason for terminating the contract with the bank is precisely the desire to receive other conditions (more favorable), it is recommended to get acquainted with debt refinancing programs first. The loan agreement with the bank should be terminated if the organization really violates the terms of the agreement.
How to terminate a loan agreement with a bank the next day
The termination procedure does not differ from the standard. The only difference is that not all banks will meet in this case. Any borrower can terminate the loan agreement with the bank the next day, this is a citizen’s legal right, but there must be good reason for this.
It should be understood that the termination of the loan agreement with the bank does not exempt from payment obligations, even if it is done the next day. Credit and financial organizations, as a rule, have a more powerful legal base than the client and are able to defend their rights in court.
This applies to almost all institutions, even small ones. It is almost impossible from the legal point of view to terminate a loan agreement with a bank unilaterally the next day, even though the law does not have a time limit.
It should be understood that the complete termination of the contract unilaterally without payment by the client is extremely rarely recognized by the court, there must be significant arguments for the court to recognize the correctness of the debtor. The loan agreement is drawn up by the bank in such a way that it is extremely difficult to challenge it.
This should be remembered, especially for those citizens who plan to get a loan and terminate the loan agreement with the bank the next day unilaterally without paying debts, fines and penalties. It will be just a loss of time and money, the court recognizes the contract in force and the borrower will have to comply with obligations to the bank in the prescribed manner according to the agreement with the bank.
Conclusion
How to terminate a loan agreement with a bank and what is required for this is described above. Despite the fact that, by law, the debtor has the right to begin such a procedure through litigation, it will not be possible to terminate the contract unilaterally without the consent of the bank in the absence of good reason. It is recommended to really evaluate your financial capabilities before applying for a loan and not create an artificial conflict with the bank if it fully complies with the terms of the contract.
Often the question arises of terminating a loan agreement with a bank, but few borrowers know how to properly terminate a procedure. Let's try to deal with this difficult issue.
It is worth remembering that each borrower has the right to refuse to grant a loan. This right is governed by paragraph 2 of Article 821 of the Civil Code of the Russian Federation, when a loan is refused until cash is issued to the hands or to the borrower's card. The main thing is to follow a certain algorithm of actions, enshrined in law.
Many banks are hostile to the borrower's refusal of a pre-approved loan. There are frequent cases of intimidation, threats, but this is a banal incompetence on the part of bank employees. After all, termination can be carried out for 14 days after receiving a loan.
There are loans that can be canceled within a month after their issue:
- other targeted loans.
When a loan is canceled, the borrower will need to pay only interest for the period while he used the loan.
When can a borrower terminate an agreement
The only effective way to cancel the contract is to terminate it before the borrower receives the funds in his hands from the bank. This provision is provided by law, and therefore no problems should arise for the borrower to terminate the agreement. The main condition: do not get credit from the bank.
The circumstances that may prompt a person to do this are different. Explain your decision to the bank in different ways. For example, arguing that the borrower managed to find a better loan offer in another bank.
It is very important in this case to inform the bank about your decision as soon as possible, until the funds have been transferred to the borrower.
Unilaterally, the borrower may request termination of the agreement if if the lender grossly violated his obligations to the borrower. However, this fact has yet to be proved. And if the bank gave money to the borrower, then, in fact, he has already fulfilled his obligation. And if the borrower accepted the loan funds, then the lender has fulfilled his obligation in full.
Also, the borrower can withdraw from the contract within two weeks after receiving loan funds on hand.
However, in this case, he still has to pay interest for the period during which the borrowed funds were at his disposal, even if the borrower did not have time or did not want to use them.
It is noteworthy that in the case of special-purpose loans, the period during which the borrower can withdraw from the contract increases to thirty days, and not two weeks. It is important to know that the borrower may not inform the bank of his decision to break the agreement. It is enough for him to come to the bank and return to him all credit funds with interest accrued on them.
You can terminate the contract by mutual agreement of the parties, which in practice is extremely rare. As a rule, the basis for this is a loan.
Grounds for termination of the contract
As for the grounds, which can be considered a good reason for terminating the loan agreement at the initiative of the borrower, in fact, there are not so many of them. It:
- a larger increase, and the borrower does not know about it;
- collection of commissions not provided for by the contract and the legislation of the country;
- incomplete informing of the debtor about the conditions of lending, payments made and other times, on the basis of which the borrower may demand the cancellation of the loan or refuse to lend;
- forced enforcing of certain additional conditions - insurance or informing and so on. It may not reach a complete refusal, but it is quite possible to challenge these “services”;
- violation of the terms of the loan agreement by the lender;
- a change in the circumstances of the borrower's habitual life - loss of collateral, loss of work, loss of health.
The last point should be said in more detail.
Keep in mind that the loss of work by the borrower or a significant reduction in the salary of the debtor in most cases is not a reason for canceling the contract.
A change in the circumstances under which the agreement was concluded does not often work. Perhaps, in very exceptional cases, the bank can compromise if the borrower has earned a serious illness during the term of the contract and therefore cannot cope with his loan obligations. However, the debtor will have to confirm this fact with documents, and it’s not the fact that the bank agrees to refuse the contract.
To summarize
Really abandoning the contract and terminating it at the initiative of the borrower is almost a losing business, and it is unlikely to manage without a trial. If the borrower still firmly decided to withdraw from the agreement, then this must be done correctly.
- It must be remembered that for termination at the initiative of the borrower, it is necessary to have truly insurmountable circumstances that entailed this need. These circumstances will need to be proved to the creditor in documentary form.
- This process does not occur in a few days. And since a person has decided to enter into a “struggle” with the bank, he will have to be patient and prepare for difficulties.
- If you decide to terminate the agreement, then you will have to follow the rules of the law, and not the usual desire. To understand what are the reasons for this, you need to carefully study the civil code, where the possible reasons for refusal are clearly formulated.
- If the bank does not want to make concessions and by mutual agreement refuse the agreement, it will be necessary to prepare for the court to come into the case. To do this, the borrower will have to file a statement of claim and pay a fee.
- If the borrower manages to prove in court that the bank has grossly violated the terms of the agreement, the court will take this into account and, most likely, will decide in favor of the plaintiff.
- Even if a person tries to break the agreement in a judicial proceeding, this does not mean at all that a bank debt will be completely written off. In the event that the borrower wins the case, he will have to return to the bank a part of the funds with interest for the period when the loan agreement was in effect. If, however, the agreement specified sanctions against the borrower, he would also have to pay the bank a fine.
Is it possible to avoid debt collection on a loan
This is only possible if the limitation period for your case has already expired. Check this fact, given that this period is three calendar years.
However, not all so simple. If you have been hiding from the creditor in all possible and impossible ways for three years, and then you have announced that the debt must be canceled, nothing will come of it. As a rule, the expired statute of limitations applies only if the creditor has not remembered you for all three years, has not tried to contact you and somehow recover the money owed to him.
If during a three-year period you have at least once received a letter or SMS from a creditor, talked on the phone or visited the office - three years from this moment begin to be counted again. That is, any of your contact with the creditor indicates that the bank is working to resolve your issue and makes attempts to repay the debt.
Thus, you can completely abandon your loan obligations if you can’t get in touch with the bank within three years without transferring your case to the court.
You can change the phone, avoid representatives of the bank, but if you get at least one letter from the creditor - that's it - the contact is established: the statute of limitations takes a new starting point from this day. Therefore, remember, the only chance not to get into trouble because of the letters is not to take them from the postman at all and not to sign any notifications, otherwise in court this will play a trick on you.
Legal assistance
Your chances of victory in court will increase if you enlist the support of a qualified lawyer with experience in such matters. A real specialist can really help you in this matter and relieve you of obligations to the bank, but no one will give you a 100% guarantee, and the services of an experienced lawyer are not cheap.
If necessary, a good lawyer will be able to refute the creditor's evidence, allegedly confirming contact with you. After all, even recording a telephone conversation is not a complete piece of evidence, because it is impossible to confirm that it is being conducted with you.
If you did not sign a mail notification of receipt of a letter from the creditor, nothing will be proved either. Since if your signature is not there, it means that you did not familiarize yourself with the letter, contact with the bank did not occur and the limitation period was not interrupted.
Debt resale
However, lenders also do not easily give up. Most often, when they understand that the situation is too complicated, they resell the debt of the borrower to a special agency, the main activity of which is to collect debts from unscrupulous borrowers. Such agencies usually do not bring the matter to court, but use all kinds of methods of psychological pressure.
If it happened with your debt that way, that is, it was sold, there are pros and cons in this. The advantage of this situation is that, most likely, you will not have to answer for your obligations in court. However, collectors, unlike banks, often do not adhere to either moral or legal standards.
Thus, when deciding not to repay a debt to a creditor, you should understand that you are entering into a long and difficult battle with a bank or a collection company, and your chances of winning this battle are not very high, since your enemy will also be set up very seriously.
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idea of termination of a loan agreement with a bankAs a rule, it comes to the borrower against the background of the discovery of its inability to repay the loan, even partially, and the accumulation of debt, to which the penalty is added. Termination of the contract terminates the obligations of the parties, and it is on this result that the calculation is made.
Really, general provisions of the law on contractual obligations allow termination of any contract. This can be done by agreement of the parties (in credit relations - the bank and the borrower), or by court order, if no agreement has been reached. In addition, one of the parties may refuse to execute the contract without the consent of the other party, which also entails termination of the contract.
With regard to the loan agreement and the obligation of the borrower, there is only one problem - It is extremely difficult to find a legal basis for termination, and even more difficult to prove its existence. Therefore, if we turn to practice, in recent years there will not be a single case where a loan agreement would be terminated solely on the initiative of the borrower. There is a right and an opportunity, but it is unlikely to realize them with a positive result.
Grounds for termination of the loan agreement
There are no special grounds. Borrowers can use those that apply to any contract:
- Agreement between the parties (bank and borrower).
- By a court decision, if:
- the bank has substantially violated the terms of the contract, and such a violation has caused damage to the borrower, depriving him to a large extent of what he expected to conclude the contract;
- the borrower refers to the basis expressly provided in the loan agreement for its termination.
- A significant change in the circumstances from which the bank and the borrower proceeded when applying for a loan is one that, if anticipated, would force the borrower to refuse a loan or enter into an agreement on completely different conditions. A prerequisite for the application of this basis is a combination of the following factors:
- when applying for a loan, the parties proceeded that the changes referred to by the borrower would not occur;
- the reasons for the changes could not be overcome by the borrower after they occurred, with due diligence and a careful attitude to the fulfillment of the loan conditions;
- performance of the contract would violate the balance of the interests of the bank and the borrower arising from it and would entail damage to the borrower with a significant deprivation of what he expected under the contract;
- loan conditions do not stipulate that the risk of a change in circumstances lies with the borrower.
Of all the above grounds, more or less applicable can be called only one - a significant change in circumstances. It, as a rule, is used when borrowers apply to the court. Among the reasons for the change in circumstances, diseases, job loss, serious reduction in income, etc. Less often, borrowers refer to various kinds of natural disasters, emergencies, and everything else that usually refers to force majeure. At the same time, all these reasons and grounds are not taken into account by the courts because of the weighty position of the bank - they could be foreseen by the borrower at the time of the conclusion of the loan agreement. Moreover, there is practically nothing to counter such bank arguments:
- when referring to the dismissal, illness, decrease in income and other circumstances of a serious deterioration in the financial and material situation, the bank has only one answer - these circumstances are surmountable (you can find a new job, start a business, recover, etc.);
- when referring to force majeure circumstances, banks argue their disagreement with the termination of the loan agreement with a very simple argument - the borrower was offered insurance, but he refused, or the borrower did not take measures to arrange insurance, that is, he could foresee different force majeure and could, Moreover, insure yourself against their consequences.
More significant is the position of the borrower, who fell ill terminally. You can also try to prepare the evidence base, justifying the fact that the borrower could not foresee force majeure circumstances and could not insure against them. But this is extremely difficult to do even with the help of a good lawyer. The arguments should be as undeniable as possible.
How to terminate the contract
Termination of the loan agreement requires a preliminary decision of the issue in pre-trial procedure. The borrower must send a notice to the bank and justify the reasons for termination. And only if an agreement is not reached, does the right to go to court appear.
A lawsuit is sent to the court with a request to terminate the loan agreement. The case is examined in the usual manner. The probability of a positive outcome is close to zero. Given this, as well as evaluating the costs of efforts and means for the trial, it is worthwhile to think very carefully about your legal position, and most importantly - evidence of the existence of a reason for terminating the contract.
remember, that the outcome of the case may depend on the correctness of the preparation of the statement of claim to the court. If you have any difficulties, then you can use the help on termination of loan agreements.