non-payment entails application of default interest. Keys to not getting lost in debt management
Gets expiration date of a share of a loan or credit, and without payment of same. Situation little desired by financial institution, of course, but even less for debtor because it involves what is known as late payment interest. What are y and how can you manage this type of situation?
interest on late payments are a percentage that is added to fee to be returned when re is a default. All information relating to type, way in which it is applied and calculated, and default charges, must be provided prior to signing of loan by lender or broker. These same conditions will also appear in contract of financial product.
The limits dictated by law
The law sets a general limit to this kind of interest, which may not be higher than two and a half times legal interest of money in a given time. The legal interest of money is updated every year in General Budgets of State and, for 2017, is 3%. In case of credit for an amount less than 200 euros, this limit does not apply.
as to mortgage loans, Draft law seeks to reform mortgage Law provides that interest of delay will be three times legal interest rate in force over period considered, this number will be added two percentage points. The delay interest will only accrue on capital pending payment and may not be capitalized. This proposal will modify mortgage Law, in which limit in interests of delay is less than three times legal interest of money and can be negotiated with entity.
If what is produced is a non-payment in commercial operations, that is to say, between companies, Law on fight against delinquencies stipulates a delay interest or than, that European Central Bank sets each semester. For second half of interest on arrears for commercial transactions is 8%.
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When re is a covenant between parties and re is no special provision in regulations, Law of civil procedure determines that interest of delay will be that of “legal interest of money increased by two points.”
The Supreme, against interests of abusive
In may, 2015, Supreme Court declared abusive of interests of delay that exceeded by more than two percentage points rate of interest own loan through a sentence that was supposed to soften punishment for non-payment of fees in loans, not mortgage. The Supreme Court considered that a non-payment on stipulated date was not sufficient for entity to implement sanctions that he believed were disproportionate with regard to prejudice that debtor had caused.
A sentence is very controversial, since bench is considered a punishment to those who do pay on time ir dues. Be that as it may, n began legal claims for all payments of default interest that had exceeded established in judgment of Supreme.
The commission for claiming debt in question
Arriving late to refund of fee (but also staying in red numbers with a credit card), that means, not only payment of default interest, but also of so-called commission for claims payable position, which aggravates position of debtor. “This is one of one of commissions most unjust that consumer supports”, in opinion of finance expert of iAhorro, Antonio Gallardo, already charged for put in knowledge of debtor which debt is acquired by not pay it in time, or discovered in an account.
“By mere fact of notice of existence of debt by mail can charge up to 45 euros, even if you have already paid fee before receiving letter, email or SMS sent to you,” says expert of comparator bank.
In this case also, justice has been positioned on side of consumers, at least on one occasion. The Commercial Court number 1 of Vitoria, in a ruling issued in June of last year, overruled commission by a claim of Kutxabank, and forbade apply it to future customers, considering it abusive. The entity charged 30 euros for commission on contracts of credit and current accounts.