Today, for a huge number of Russians, loans are almost the only way out in the process of solving material problems. At the same time, one should not forget that the procedure for registering borrowed funds in a bank is fraught with potential risks, faced with which a person can dig a deep debt hole. That is why for many borrowers the question is how to terminate the contract with a bank on a loan is of fundamental importance.
It should be noted that when a citizen takes money from a banking institution, he signs a document about it, which is valid for a certain period of time. It would seem that everything is clear here. However, in life there are various circumstances, due to which there is a need to prematurely cancel the loan agreement. However, we note that this procedure cannot be classified as simple. In this regard, the question of how to terminate the loan agreement with the bank requires a detailed consideration.
There may be several reasons for canceling a loan agreement.
Cancellation of contract
A loan agreement can be canceled until you have been given the money in your hands. This is provided for by civil law. Not sure how to terminate a loan agreement with a bank? Just don’t take the money, explaining your behavior by finding offers with more favorable conditions. In this case, you need to notify the financial institution of your decision.
In addition, there is another way to resolve the issue of how to terminate a loan agreement with a bank. You can cancel the borrowed funds within two weeks from the moment they were issued to you. If you made out a target loan (for education, buying a car, etc.), then this period is thirty days. However, you should not forget that for the above periods of time you will have to pay interest, since you had the potential to use money.
At the same time, terminating the loan agreement with the bank in this way, the law does not oblige the credit institution to be notified in advance of the decision made.
Agreement termination by agreement of the parties
Another reason for canceling a loan agreement is the agreement of the parties. Moreover, it is often used for loan restructuring. In this case, you sign a document with the banking structure that will specify the conditions for the return of the remaining part of the debt (they may differ significantly from those that were recorded in the original version of the contract).
Cancellation of a loan agreement by court order
You doubt whether it is possible to terminate the loan agreement? Rest assured, many do this by going to court. There are a number of reasons that allow you to write a statement of claim with a request to cancel the loan agreement.
These include, but are not limited to:
- a) levy of penalties and fees that are contrary to law;
- b) an unilateral increase in the interest rate on the loan;
- c) a situation where the order of debiting funds does not comply with the law;
- d) the banking institution violated the terms of the loan agreement;
- e) the circumstances have changed since the receipt of the borrowed funds (for example, the borrower was fired from his job and so on).
In any case, if you were able to terminate the loan agreement with the help of a judicial procedure, then you must duly fulfill your obligations and return the money to the financial institution.
Termination of a loan agreement at the initiative of a banking institution
In some cases, the borrower does not have to puzzle over how to terminate the loan agreement, since this is primarily interested in the bank, which initiates the cancellation procedure.
Such cases usually arise after the debtor has repeatedly violated the timing of the monthly payment. Naturally, this is a powerful argument for a bank to terminate partnerships with a borrower who is obligated to repay a loan ahead of schedule.
Fulfillment of loan obligations ahead of schedule
The surest way to cancel a loan agreement is to repay money to the bank ahead of schedule. More recently, credit institutions in most cases used moratoria and commissions if the borrower intended to repay the loan ahead of schedule. However, now the situation has changed. Want to know, for example, how to terminate a contract consumer credit? This can be done by early repayment of the debt. The only thing you should do is notify the banking institution of the early fulfillment of obligations no later than 30 days before the loan repayment date, unless the terms of the agreement provide for a different period. In this case, any sanctions by the lender will be unlawful.
How to terminate a credit card agreement
Many people have credit cards through which they pay for goods or services. Of course, situations arise when a person no longer needs to use them, and he throws away a credit card or destroys it. However, the commission of such actions does not mean that you terminated the contractual relationship with the financial institution.
Even if you burn the card, you still have credit obligations to the bank. Naturally, the costs of maintaining the account (mobile banking services, SMS notifications, etc.) you will still have to pay. Moreover, the debiting of funds for the above services will take place automatically, therefore, after a certain period of time, debts to the bank can increase significantly, despite the fact that you do not use a credit card.
To nullify such risks, the account should be canceled. To do this, you should never get rid of a credit card. In addition, you should clarify the full list of paid services and apply for their disconnection. You also need to know the amount of debt on the card and pay it off. After that, you must send to the banking institution an application to close the account, which will not be canceled immediately, but after some time. You can find out the exact information about the termination of the loan agreement by phone from an employee of a banking institution.
