Exceeding the loan repayment deadline often ends in this way. Although the call for payment is not the end of the world, it is not worth underestimating such a document. Check the consequences of this type of writing. We usually receive a payment request when we are late with the loan. The delay time is not very important here – each lender has its own policy regarding the issue of payment reminders. Non-bank companies usually send about three payment requests. While nothing special happens in the first two cases, trouble may arise when we receive the last reminder, also known as the “final request for payment”.
Call for payment, or what threatens us for passivity?
When we open correspondence and find a payment request in it, we usually panic. We often don’t take any steps to solve the problem, and we hide the received call deeply in a drawer. We hope that somehow it will be, and our problem with the creditor will magically solve itself. Unfortunately, in this case nothing will be forgotten. In the first request we will receive a specific deadline to pay the liability. If we still don’t refund the debt, the lender will send us another reminder. In the event that the sending of a second request for payment also fails, the creditor will prepare a letter with a final request for repayment of the resulting debt. If we do not answer this document, the case may be referred to external debt recovery or referred to court. And that means extra trouble and, worst of all, more costs. It will be our responsibility to pay the fees related to any legal proceedings. The next payment, which may exceed the value of our loan, will also be due to the amount due. For the sake of our finances, it will definitely be better to either pay the debts on the first calls or try to negotiate with the lender if our financial situation prevents us from paying off our debt quickly. In fact, any attempt to act will be a better option than waiting passively for further developments.
Don’t wait, act!
So when you receive a payment request, show that you also want an amicable settlement. Be sure to contact the lender. Tell us about the situation and explain why you are not able to pay all the debt immediately. Ask for repayment in installments. This option will probably have a price, but it will definitely protect you from much higher costs and unpleasantness. The lender also wants to get his money back. In most cases, he will try to go your hand.
Fortunately, lenders do not charge any fees for the request for payment. Before changes introduced using the so-called Anti-usury Act, such notifications cost up to several dozen dollars. For the budget of late borrowers, this is a big relief. Nevertheless, we must not forget that any delay in payment involves the charging of penalty interest for each day of delay. In addition to the costs associated with any debt collection, our debt will also include such fees. Ultimately, the costs of our commitment will increase significantly. Therefore, it is not worth disregarding the calls received from the creditor.