Did you get a termination from a loan company? Are you planning to terminate the contract yourself due to non-compliance with applicable rules? Does the reason for termination have to be given and how to do it correctly so that the termination is correctly applied and read? What does such a document look like in theory and in practice? We will try to answer all these questions below, suggesting what to do not to receive or correctly send termination.
What is a termination?
Before we get into the specifics, let’s try to explain what the termination is. Contrary to appearances, termination is not the same as withdrawal, although we often confuse these concepts with each other. Yes, both the first and second lead to the expiration of the commitment. Termination of service primarily as a means of terminating the legal relationship, with the emphasis on the fact that further cooperation is not in our circle of interest. Termination may therefore occur:
- for a specific reason, mainly for breach of an obligation of either party to date
- without giving a specific reason, derived from legal consent to the withdrawal of each contract
When can we receive a contract termination?
Let’s get down to the facts, i.e. the situation in which we receive the notice. Our oversight and failure to comply with the submitted declarations can lead to a termination by the lender. So if the borrower does not repay the liability on time, the creditworthiness changes dramatically, and the debt accumulates and does not give a real chance of repayment, we can expect to send a notice. Contrary to appearances, this often happens, mainly due to constant access to national registers, such as BIK or BIG. You are probably wondering what limit and debt is the basis for such termination? This, of course, depends on the standards of the company where you are indebted. Nevertheless, legal articles are already talking about two installments not paid on time.
Relax, the lender also has certain rules that regulate the termination process. This means that a refund request should not be made immediately. The company should guarantee you a 30-day notice period, thus giving you the chance to raise funds. As the other party, you have the right to demand a written notice, thus ensuring the security of your conditions. Remember – after termination, you must pay the debt. The minimum time is six weeks to make a repayment, but companies often extend this deadline.
When can we send notice of termination?
The right to terminate works in two directions, which means that you can also use it as a party borrowing from a given loan company. Your termination may have both a clearly stated reason and, on the contrary, not indicate it at all. By sending a notice you can do it both by e-mail and Polish post. However, make sure that both forms have confirmation of delivery to the recipient. The terms of termination can be given in the previously signed contract. These provisions apply to contracts signed both for a definite and indefinite period. If there is no notice regarding termination in the contract, the Civil Code rules apply.