This article has been translated from our Spanish edition. Opinions expressed by Entrepreneur Contributors are their own.
- Negative impact on your credit history.
- Hunt group calls and emails.
- Physical visits.
- Judicial Collection.
Nowadays it is very easy to a. to request Online loan . You can do this from the comfort of your home or office, from your mobile phone or computer, anytime, anytime. In addition, the vast majority of the Fintech company do not ask for guarantees or guarantees in order to obtain credit. This way, once approved, you will receive a voucher in the form of a credit in your bank account, and often in just a few minutes.
The speed and simplicity of the process and the remoteness of the institution granting you the loan can simulate that the consequences of non-payment are small or zero. Will the internet portal end up charging me here in my city? It is very common for the debtor to see the digital process and not suggest that behind this website there is a team of people – including professional debt collection teams – dedicated to the recovery of any loan distributed by the platform or fintech.
Some other customers who try to provide evidence of their non-payment may think that there is no obligation to pay because they have not signed anything. But absolutely all platforms require the signing of a contract or a digital acceptance, which in Mexico has the same validity as the handwritten signature. So it is wrong to hide behind this concept.
Prestadero is one of the first (if not the first) platforms to provide online credit in Mexico. Over the years we have encountered many misjudgments from debtors regarding their obligation to repay the loan. Not all, but some, minimize the consequences of not making their loan payments online and are surprised to see the dire consequences firsthand.
Therefore, if you are considering applying for a loan online, it is important that you have a very good understanding of the consequences of failing to pay:
Negative impact on your credit history
The companies that grant loans over the Internet, as well as all financial institutions or banks, report your payment history to credit information companies (e.g. Schufa). So when you stop paying, those arrears will be reported (including the amount and days of the arrears) and reflected in your credit history. Even if you pay later and are updated, there are indications that you have defaulted on the credit, the amount of delay, and the days of that delay. How does this affect you? If you re-apply for a loan from another institution, they will face such arrears and will almost certainly deny you the loan or give it to you on very unfavorable terms (ex.
Hunt group calls and emails
Companies ask for contact information (and sometimes we ask for references). This data is used to find and contact you in the event of a non-payment. Receiving debt collection calls on your phone, home and office is very annoying. or that you receive messages from your references asking you to contact the financial company to settle your debt, but if you stop paying it will be one of the consequences.
Most of the people who apply for a loan online believe that all they need to do is avoid the hassle of debt collection calls. But the companies have their own or third-party employees who make house calls across the country. Many people are surprised to note that there are people out there who visit your home or workplace to request payment, which can be painful to the debtor. In general, companies with efficient communication and willingness to pay avoid sending debt collection companies home, but in extreme cases such visits are also carried out at the debtor’s.
This point is very important as debtors are often unaware of this important consequence. When negative credit history reports, calls and emails, and home calls aren’t working for you, online lending platforms choose to file a lawsuit to request payment. This procedure is of course also associated with costs for the scholarship holders, which is why it is regarded as the last option if all other attempts fail.
Judicial collection essentially consists of obtaining a judgment to collect the loan with the applicant’s assets. The fact that a loan is born without guarantees does not mean that they cannot later be presented as part of a judicial collection. Following a court ruling, grantors can require you to bill real estate (such as houses), cars, housewares, bank accounts, investment accounts, or even part of your salary.
We lenders know that sometimes situations arise that are beyond the reach of loan applicants. An applicant can stop paying due to lack of work, health problem, or even natural disaster. But if the person who gave you the loan believes that there is only a refusal to pay and there is no will to get the loan agreement concluded well, a lawsuit will be filed to reclaim the loan.
In summary, the consequences of a loan default are very similar to those of a traditional loan in physical form. But if you make your payments on time, you can be sure that the online loan will open the doors for you so that you can have access to cheaper loan every time, and much more conveniently than going to branch offices. It is up to you to properly use the technology to access the new financial services that are to come.