Short-term overdue loans and their consequences
Different financial institutions have different definitions of short-term overdue time. In view of short-term overdue, institutions generally do not take compulsory measures, but will remind them to collect repayment, and the consequences are:
1, high fines and liquidated damages
After loans overdue, in addition to interest and principal, you also need to pay a high penalty interest and liquidated damages.
2. Leave a personal credit stain
The overdue records will remain on the credit report, and even after repayment, the overdue records will be retained for 5 years. Overdue records will affect almost all the subsequent financial activities of the overdue person.
3. Receive text messages and collection calls.
Lending institutions will continuously send short messages and telephone calls to collect overdue funds, inform borrowers of the serious consequences of overdue, and order borrowers to return overdue principal and interest within a time limit.
Terms of the loan agreement:
Article 10 of the Supreme People's Court's Opinions on the Trial of Lending Cases by People's Courts: The loan relationship formed by one party by fraud, coercion or taking advantage of the danger of others in violation of its true meaning shall be deemed invalid.
Article 11 of the Supreme People's Court's Opinions on People's Courts Handling Lending Cases: Lenders know that borrowers borrow money for illegal activities, and their lending relationship is not protected.
According to the Notice on Standardizing and Rectifying "Cash Loans" issued in February, 20 17, it is forbidden to deduct interest, handling fee, management fee, deposit and set high overdue interest, late payment fee and penalty interest from the loan principal in advance.
At present, most online lending platforms on the market involve beheading interest, charging management fees and deposits indiscriminately, and the overdue fees and late fees after overdue are surprisingly high. These all violate the relevant regulations, and they have no choice but to collect money by violence.
In addition, as early as 20 15, the Provisions on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases issued by the Supreme People's Court stipulated that the people's court should support the interest rate agreed by both lenders and borrowers if it does not exceed 24% of the annual interest rate; The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid.
Knowing this can explain why they dare not sue, because they threaten to sue. Because any part with an annual interest rate exceeding 36% cannot be supported by the court. At the same time, they illegally lend money first, and being sued is undoubtedly shooting themselves in the foot.
Provisions on providing guarantee for loans:
Article 198 of the Contract Law stipulates that when concluding a loan contract, the lender may require the borrower to provide a guarantee. The guarantee shall comply with the provisions of the Guarantee Law of People's Republic of China (PRC).
Article 13 of the Supreme People's Court's Opinions on People's Courts Handling Loan Cases: In the loan relationship, the person who only plays the role of contact and introduction does not assume the guarantee responsibility. If there is a real intention to guarantee the performance of the debt, it shall be recognized as a guarantor and bear the guarantee responsibility.
Article 2 1 1 of the Contract Law: "If there is no agreement or unclear agreement on the payment of interest in the loan contract between natural persons, it shall be deemed as non-payment. If the loan contract between natural persons stipulates the payment of interest, the loan interest rate shall not violate the relevant provisions of the state on limiting the loan interest rate. "
Article 6 of the Supreme People's Court's Opinions on People's Courts Handling Lending Cases: "The interest rate of private lending can be appropriately higher than that of banks, and the local people's courts can specifically grasp it according to the actual situation in the region, but the maximum interest rate shall not exceed four times (including interest rate) of similar loans of banks. Beyond this limit, the excess interest will not be protected. "
Chapter 23 "Intermediary Contract" of the Contract Law clearly stipulates that an intermediary can provide intermediary services concluded in a loan contract and collect corresponding remuneration from the principal according to law. Therefore, the existence of loan service institutions and the collection of service fees are in line with the law and protected by law.
Refer to the above content: Baidu Encyclopedia-Online Loan