Financial obligations sometimes bring immediate benefits, but with a little carelessness or financial turmoil, they can become a big problem after a while. Creditors, however, are very meticulous about whether they receive timely receipts. There is usually a warning before the debt collection machine starts for good. What is the final call for payment?
Everyday life, to a greater or lesser extent, always involves various types of expenses. Shopping, buying everyday items, buying a bus ticket. The world of finance is constantly creeping into the daily routine, forcing the consumer not only to plan their expenses in the perspective of one or several days, but also weeks, months and even years.
In addition to the daily cost of living, many of us finally have smaller or larger financial obligations. Sometimes these are payments related to the flat, such as rent and energy bills. Many people also regularly have to remember to pay their telephone and internet bills, as well as the cost of a telephone subscription. Public transport? Monthly ticket or single tickets. Car? Fuel, less often – insurance and inspection.
These commitments are still the tip of the iceberg, given the costs, how many people are indebted to banks, loan companies or points selling various products in installments. When looking for ways to quickly obtain cash for a product that, for various reasons, we do not want or cannot pay with current funds, it should be remembered that this heavily burdens the budget for months or even years. Although many consumers are trying to remember about the obligations of timely repayment of installments for credits or loans, life shows that the financial schedule can easily be shaken.
A delay in repayment can bring quick trouble
The payment of the installment due for e.g. credit or TV set may not occur for various reasons. For some, the financial situation may collapse suddenly and unexpectedly due to e.g. loss of job or illness. Still others may overestimate their budget prospects and may not find sufficient funds to settle their commitments. There are also those who intentionally avoid paying their debts, hoping that they will escape in this way for the imposed responsibility.
Regardless of the reasons for the backlog of liabilities, it should be remembered that this is associated with considerable problems for the consumer. First of all, a popular practice that consumers are informed about when making an commitment is charging penalty interest for late payment. Most often they apply from the first day after the payment date. After just a few weeks, the amount can be significant, and after a few months – it can grow to incredible proportions. It’s still not everything.
The entity that is entitled to the repayment of funds, i.e. the creditor, sometimes starts operations from the first day of delay in payment. Their goal is to be, first and foremost, a reminder of the obligation to return the funds due and a conviction to settle the backlog. In addition, it is also to make the debtor aware of the damage that can be caused by further arrears in the payment of damages. After all, criminal interest added to debt is in many cases just the beginning of the loss associated with weeks of debt.
How do creditors remind you of financial arrears?
The creditor is uneven. Of course, it is difficult to define a standardized model of action in the event of arrears in payment of financial receivables. This may depend mainly on whether you are dealing with an entity that regularly lends money (a loan company, a bank), other entities regularly receiving large sums of money for given services (enterprises, apartment owners), or a private person, who lent us money once.
Those who trade their financial liabilities on a daily basis usually have a working scheme developed in the event of delays in debt repayment. These types of cases are ultimately included in the risk associated with conducting such activities. Consumers are informed about the conclusion of the relevant contract about the activities of the entity in the event of late payment. The consequences of a delay in repayment are provided in the relevant section, both when granting a loan and when buying goods in installments, concluding an apartment rental contract, etc.
After the consumer has not paid the amount of money due, the meticulously programmed machine is launched. The caliber of given activities increases depending on the cooperation of the debtor. If subsequent attempts to convince you to return the outstanding balance do not bring the desired results, then eventually the case may go to a bailiff. If he obtains a court enforcement clause, the long-term debt may end with bailiff enforcement on the debtor’s assets. However, this is the action of the largest caliber. Where does it start?
The first step is usually to remind you to pay by communication. The creditor makes telephone calls, sends reminders by e-mail or via registered mail. Some, e.g. loan companies, also manage the so-called prompts, which – unfortunately – involve the debtor being charged with the costs. At the stage of admonishing the debtor, another popular letter is often used. They are called a payment order.
Call for payment – what is it?
Under the term “request for payment” there is a letter, which is addressed to the debtor by the creditor in the event of delays in repayment. It does not have a general formula and is not subject to any legal regulations as to the appropriate time when it should be addressed to the consumer. This letter is intended to perform only a basic function. It is to remind the defaulter of the obligation to pay a certain sum of money, inform about the current amount of debt with interest (if any) and warn of further consequences of unregulated debt.
In addition to the warning and information function, the request for payment can also be treated as a desire to amicably resolve a situation unfavorable for the consumer. The creditor informs that he does not want to resort to formal means in the form of e.g. entering data in the debt register or submitting an application to the bailiff. This is usually the penultimate or even last bell, suggesting that the creditor is running out of patience. How can the consumer receive the document in question?
The request for payment may be written by any creditor with financial arrears. It has been accepted that it is sent by post, usually by registered mail. However, if a signed and appropriately marked document is scanned, it can also be sent to the debtor by e-mail.
Final call for payment – what is it and what makes it stand out?
The request for payment may take the form of a more radical, urgent and final document. The final request for payment is a document which, as the name suggests, is addressed to the consumer in the event that the creditor wants to express his desire to resolve the dispute amicably for the last time. The alternative deadline, the final pre-court payment request , also very precisely suggests the function of the document in question. Before the case is referred to a formal way (to the court), the creditor informs the consumer about the last chance to meet the obligation to return the funds due.
The final request for payment is therefore different from the classic request for payment with the sender’s intentions. In the case of the latter, it is possible in practice to send many such documents by repeating this action many times. The request for payment is also usually suitable in the early stages of debt. The final summons is usually decided when you lose patience with the debtor and this is the last document of this type that he receives before entering this formal path.
What must the final request for payment contain? Pattern
The pattern we will present is, of course, only an example template for the final request for payment. As with ordinary calls, there is no generally accepted pattern. There is only a group of several necessary elements that must appear on such a document in order for it to fulfill its function. Let’s meet each of them.
- At the beginning, the full title of the letter should appear, i.e. the final pre-court payment request.
- Let’s not forget about the date and place where we prepared the document.
- Then enter the debtor’s details , i.e. his name, surname and address.
- You should also put your credentials next to you. Depending on whether you are writing as an enterprise or a private individual, provide your name, or address below.
- The document should state the exact amount of debt that the consumer was originally supposed to pay back. Next, provide the total sum of interest (accrued to the date of writing) and, optionally, other collection costs. Thirdly, we recommend that you provide the total sum of the amount due to be refunded.
- It should also be clarified on what basis the creditor is demanding repayment (unpaid loan, unpaid rent, unpaid installment, etc.).
- It is also necessary to indicate the final date of payment , indicating that it must be strictly observed
- The above information is also associated with clarifying how the money will be returned. In the era of electronic banking, the most convenient way will be a bank transfer.
- It is also worth mentioning the consequences that will result in failure to comply with the creditor’s demands.
- Finally, in order for the final request for payment to be binding, it should be signed by hand signature.
The final request for payment should be made in duplicate, one by registered letter with acknowledgment of receipt. Keep the second art on yourself.
What should the debtor do when a final request for payment is received?
We already know the basic information related to the final request for payment that the creditor should know. However, it is also worth quoting the most important guidelines that should be remembered by the debtor who receives such a letter.
- It is necessary to consider whether the creditor has previously contacted the consumer to remind him of the obligation to pay.
- It is worth checking in the request that all data is correct and reliable.
- If we have remained passive to warnings so far – this is the last chance to pay off the debt. However, if the letters you have not received so far are worth contacting the debtor for clarification.
- If the funds do not allow the debt to be settled, also – we recommend contacting the debtor to reach an agreement. The most important thing is to show willingness to pay and cooperate!
What can a creditor do if the final request for payment has no effect?
The final call for payment is the last warning against the creditor bringing heavier guns. What can they look like? If the debtor does not meet the repayment deadline specified in the letter, and in addition does not make any contact attempts, although he confirmed the receipt of the letter – the creditor remains in court. In this case, it is a chance for the most effective discipline of the debtor. To seek help from a court, you must contact your local authority to file a lawsuit.
You may also want to resolve the case through a court bailiff. In such a case, you should apply to him for enforcement, while obtaining a court enforcement clause. If the search for the debtor’s assets and locating his place of residence is successful, the chance of getting the debt owed is high.