Termination of a loan agreement with a bank at the initiative of the borrower. Termination of a loan agreement at the initiative of the borrower Law on termination of a loan agreement

If you took out a loan and are late, the bank will begin measures to enforce the debt collection.

First, the employees of the institution will call and write to you, then the collectors will get involved. If an agreement cannot be reached amicably, the creditor will sue you. In his statement of claim, he may also demand termination of the loan agreement. What to do if the bank wants to cancel the loan agreement early? We'll tell you further.

Grounds for termination of a loan agreement

According to Art. 450 of the Civil Code of the Russian Federation, a loan agreement can be terminated in two ways: by agreement of the parties or unilaterally.

In the first case, if a person repays the loan on time, the agreement automatically terminates due to the full fulfillment of obligations under it. In the second, if at the time of expiration of the loan agreement the debt is not repaid, it is not considered terminated, since the obligations under it have not been fully fulfilled. In such a situation, the bank has the right to terminate such an agreement on its own initiative. The procedure is carried out exclusively in court.

Unilateral termination of the loan agreement occurs only through the court.

The Bank has the right to demand early termination of contractual relations with the borrower in the following cases:

the borrower does not fulfill its debt obligations;
he violated another essential condition specified in the contract (for example, he changed his place of residence or work without notifying the creditor).

According to the Federal Law “On Consumer Credit (Loan)” and Art. 811 of the Civil Code of the Russian Federation, if the borrower has not fulfilled the terms of the loan agreement for more than 60 days out of 180, the lender has the right to demand early repayment of the debt and termination of the agreement.

In addition to the reasons listed above, the bank may raise the issue of early repayment of the loan in the following situations:

the borrower has not fulfilled his obligations regarding the provision of the loan repayment amount;
he has lost the collateral for the loan, or its conditions have worsened due to circumstances beyond the bank’s control (for example, if a car pledged to the bank was stolen).

The bank is obliged to notify the borrower in writing of the decision to cancel the contractual relationship, indicating the reasons for such actions. No more than 10 days are given to repay the debt from the date of receipt of the notification. Please note that the notification itself does not constitute unilateral termination of the contract.

If the bank decides to terminate the relationship ahead of schedule, this does not mean that all previously assumed obligations are removed from you. The creditor has the right to demand not only the return of the principal debt, but also the payment of all interest, penalties and fines that were accrued during the period of delay.

Unilateral termination of the loan agreement does not relieve the borrower of previously assumed obligations.

What to do if the bank asks to repay the loan early?

It all depends on whether the creditor sued you or not.

Pre-trial dispute resolution

If the case has not yet reached court, do not expect a miracle - try to resolve the situation peacefully. First of all, immediately begin negotiations with the creditor - contact the bank with a written application. In your application please indicate:

information that you do not refuse your obligations, but cannot make payments on the same terms;
reasons for insolvency. They must be respectful (illness, etc.) and have documentary evidence.

This way you will show the bank that you would like to repay the debt, but life circumstances do not allow this. Many credit institutions meet their clients halfway and offer a way out of a difficult situation that is acceptable to both parties.

You will still have to pay your debts, so notify the bank in advance of your financial difficulties.

Trial

If you do not contact the bank for a long time and do not make payments, the creditor has the right to sue you. To challenge the claims, you will need to provide the court with valid reasons for not fulfilling your contractual obligations. Only then will the judge consider your arguments weighty and deny the creditor his claims.

If the reasons why the bank wants to terminate the loan agreement are insignificant (for example, a one-time missed monthly payment), you can file a counterclaim on the disproportionateness of its demands. Remember that the bank has a whole staff of lawyers, so it is very careful, otherwise you will be forced to “fork out” complete."

Your position in court must be documented.

What to do if you have nothing to pay?

If the bank terminates the loan agreement unilaterally, the borrower finds himself in a situation where he urgently needs to repay the balance of the debt. But this is not always realistic, so you can ask the court to defer or installment plan for the execution of its decision.

Installment plan is the payment of a debt in installments in the form of regular payments over a certain period of time (until the debt to the bank is fully repaid). Deferment implies the obligation of the debtor to fulfill the court decision after a certain period, when he has the opportunity to fully repay the debt. The maximum deferment period is 6 months.

To get an installment plan or deferment, you will need to prove your difficult financial situation: lack of work, disability, presence of dependents, etc. It is also necessary to demonstrate to the court that violations of the terms of the loan agreement were forced and not intentional.

In addition, you can use the option of a settlement agreement, when the parties manage to reach a compromise and change the terms of the loan agreement according to the prevailing circumstances.

Ask the court for a deferment or installment plan.

Do I need to contact a lawyer?

An ordinary citizen cannot understand all the intricacies of relationships with banking organizations, so it is better to seek the help of professionals. on loans will help you form a competent legal position and defend your interests in court. The specialist will collect evidence of violations on the part of the bank: its reluctance to make contact and provide, illegal accrual of penalties. You also do not have to attend court hearings - all the work will be done by a lawyer under a power of attorney.

By turning to a lawyer for help, you can count on:

qualified legal assistance;
significant time savings;
maximum reduction of fines and penalties on overdue loans;
real calculation of the total amount of debt;
the possibility of debt restructuring and deferment of a court decision.

Please note that only a loan lawyer will be able to resolve the conflict with the bank in your favor as quickly as possible.

If you want to defend your interests and not pay extra, contact a human rights activist.

The question of terminating the loan agreement arises before the borrower, provided that he is unable to repay the loan, or before the bank if the client is in debt.

Termination of the contract unilaterally can be done in two ways: by agreement of the parties or through the court.

Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.

If you want to know how to solve exactly your problem - contact the online consultant form on the right or call free consultation:

Read about how and where you can complain about a bank in our.

At the initiative of the bank

Can a bank unilaterally terminate a loan agreement?

The bank has the right to terminate the agreement unilaterally in accordance with Article 450 of the Civil Code, if the client violates the terms and conditions stated in it:

delays payment: the contract specifies the exact deadline for depositing the amount of money within which the client must meet;
does not make loan payments: the amount of debt accumulates.

What to do if the bank terminates the loan agreement? You can try to resolve this problem before the trial by contacting the bank with application for debt restructuring. Restructuring involves changes to the terms of the contract.

The most common changes concern:

payment schedule: change of payment date;
loan term: an increase in the loan period entails a decrease in monthly payments;
providing the opportunity for a certain period not to pay the principal, but only interest;
interest rate reduction: the bank takes this measure extremely rarely.

If an agreement with the creditor fails, then after three months of debt the bank has the right to file a claim with the court to terminate the contract.

Upon termination of the credit relationship, penalties are collected from the borrower.

Also, the borrower's credit history will be damaged. The bank will still have to pay the debt, taking into account the amount of penalties and interest. Therefore, in a situation where there is no way to pay the loan, it is better to try to resolve everything peacefully.

Where does it begin and what does foreclosure on the debtor’s property include? find out right now.

At the initiative of the borrower

Terminate the contract at the initiative of the borrower perhaps without any consequences in two cases: when paying the entire amount, including interest and fines, or until the money is received, having previously notified the credit institution.

There will be no penalties in these cases.

You can also cancel an agreement that was concluded after July 1, 2014 (the date of adoption of the law on consumer credit), within two weeks from the moment of its conclusion, by paying the entire amount of the loan provided and the interest that accrued during this period. There is no need to notify the bank about this in advance.

In all other cases, desire alone is not enough to terminate the contract. It is virtually impossible to terminate a credit relationship without the bank’s consent.

A compelling reason is required. Such a basis should be a violation of the terms of the loan in accordance with Art. 450 GK.

There are two possible ways to break credit obligations:

by agreement of the parties;
on the trial.

You can submit a sample application to the bank for termination of the loan agreement.

By agreement of the parties

You should try to negotiate with the creditor to revoke the contract peacefully.

To do this, the first step should be drawing up an application for termination of the contract in free form sent to the bank.

The document is drawn up in the name of the bank manager, which is indicated in the upper right corner. Below is written from whom the request is being sent. The text of the document itself must include the date and number of the loan agreement in question.

The reason for breaking the contract must also be formulated there. The main reasons that are usually given are: dismissal from work, decreased income, serious illness, and natural disasters are also cited as arguments: fires, floods.

In the case of the latter reasons, the bank usually indicates that I had to take out insurance. At the end of the application there is a list of attached documents. For example, if you lose your job, this will be a layoff order and a certificate of registration for unemployment.

The claim can be sent to the bank by registered mail with notification or personally taken to a bank branch. It is necessary that on the second copy the bank employees made a mark of acceptance applications for consideration.

Within 30 days, the creditor is obliged to send a response, which, as a rule, will be negative, since it is not profitable for the bank to lose the contract.

If the main reason for breaking the contract is the inability to pay the debt, it is more logical to draw up application for debt restructuring. The bank may agree with this formulation.

Statement of claim to the court for termination of the loan agreement with the bank.

Through the court

It must be drawn up correctly, mentioning the norms of the law, so it is better to leave it to a specialist.

This claim should be accompanied by a statement in which the desire to terminate the contract by agreement was expressed.

It's better in the lawsuit indicate the violations that were committed by the bank. The following violations are given as examples:

The agreement provided bank account opening fee and issuing a loan. The Bank does not have the right to charge additional funds for the provision of these services.
Violation of the order of repayment loan. According to the rules in accordance with Article 855 of the Civil Code, the principal debt must be written off first, the penalty is paid last.
Bank often forces its clients to take out insurance. This is not always legal. Insurance should only be taken out in the case of a mortgage loan.

The borrower must pay state duty of 300 rubles and attach it to the statement of claim. An agreement with the bank, a payment schedule, a statement of claim, a payment receipt and a document indicating the reason for termination - all these documents are sent to the district court.

In practice, a borrower rarely has a positive outcome from litigation. The court sides with the bank and believes that the borrower should have provided for all unforeseen situations.

But if properly prepare for trial, then there is still a chance to win the case.

To go to court you will also need certain costs, which may be related to payment for the work of your defender.

If a situation arises in terminating the loan agreement, the borrower must provide all the arguments for a positive result.

It is better to solve this problem by agreement of the parties, not to bring the matter to court, since during the trial most often the truth remains on the side of the bank.

You can learn about the consequences of terminating a loan agreement with a bank from the video:

Borrowers who complete a deal in a hurry without checking the terms of financing and repayment often face serious problems with their loan. To avoid such troubles, a program of comprehensive consumer protection has been developed at the state level, including the possibility of voluntary refusal of credit products. The law guarantees access to the transaction termination procedure within 14 calendar days from the date of official signing of the loan agreement by the parties.

Full termination of the contract within fourteen days:

Guaranteed by law as one of the methods of protecting consumer rights.
Does not affect the credit history and solvency rating of the borrower.
Allows you to quickly return borrowed funds without having to make interest payments.
Does not guarantee the return of money previously spent on additional services and bank commissions.
Threatens the borrower with paperwork.
Reduces the level of confidence of the lender in the borrower.

Termination within 14 days from the date of signing the current loan agreement can occur without the borrower indicating an official reason for refusing the transaction. In essence, the client withdraws consent to enter into an agreement with the credit institution. Of course, the presence of an objective and justified reason for such a decision will significantly speed up the process of abandoning the deal. In addition, the lender may threaten legal proceedings or officially limit the borrower’s ability to qualify for credit products in the future by adding information about the unreliable client to the organization’s blacklist.

You can cancel the contract if:

Fraudulent actions on the part of the lender.
Unilateral addition of previously unagreed terms of the transaction.
The presence of prohibited commissions and hidden payments specified in the document.
The emergence of new circumstances of the transaction that the borrower was not aware of at the stage of agreeing the contract.
Mutual agreement between the client and the financial institution to terminate cooperation.
Adjustments to the terms of the transaction as agreed by the parties.

The borrower has the right to apply to change certain terms of the transaction if at the stage of drawing up the current contract a misunderstanding arose with the lender. For example, due to inattention or a low level of legal literacy, many clients of commercial banks agree to receive paid optional services. As a result, the overall cost of the loan increases. By promptly contacting the bank with a request to note such terms of the transaction, the borrower will reduce the amount of the overpayment on the loan by 5-20%.

It is recommended that the borrower terminate the contract without revising the current terms of the transaction, citing the fact of deception and misrepresentation. If the lender outright lies about the properties of the service provided or places partially false information, including on various advertising materials, the client can unilaterally cancel the contract. Typically, the lender quickly comes to terms with the defrauded borrower in order to reduce the risk of litigation, which could undermine the organization’s credibility among the audience.

Stages of termination of a loan agreement:

Studying the list of credit products for which termination of the agreement within fourteen days is allowed.
Submitting a written application for cancellation or termination of the contract. It is recommended to hand over the application personally to an employee at any branch of a financial institution or send it by mail.
Return of borrowed funds. You will have to pay off the credit card or transfer the full loan amount with commissions and interest charges to the lender's bank account.
Receive application confirmation. After agreeing on the procedure, the lender undertakes to return the down payment, a one-time commission and related payments for the execution of the agreement.

The action plan for terminating the contract is extremely simple. The borrower must be well aware of his rights and obligations before applying for cancellation of the agreement. If a deceived client has problems with legal literacy, you should seek help from an experienced lawyer.

Lawyers and attorneys provide professional services in the field of concluding, verifying and terminating loan agreements. If necessary, specialists will also help with drawing up and submitting a statement of claim to the appropriate court.

Termination of the loan agreement does not apply to transactions related to:

Acquisition of various real estate assets.
Providing any type of real estate as collateral (mortgage).
A consumer loan for services that were completed within fourteen days.

Cancellation of a concluded contract without explanation is possible only within the period specified by law. If the borrower delays contacting the credit institution, the transaction will be abandoned through the courts. The client will have to officially prove the fact of fraud on the part of the creditor.

The second option for repaying the loan is early repayment, which may result in significant overpayments. Some financial institutions impose a moratorium on refunds for several months from the date of the transaction. The borrower will have to pay for each day the loan is used.

Conditions for revoking consent to conclude an agreement:

The fourteen-day period is calculated from the moment the borrower receives a copy of the signed agreement.
It is enough for the client to return the borrowed funds if the goods and services within the framework of the consumer lending procedure were not received in full or their parameters do not correspond to those specified in the contract.
Availability of documentary evidence of the fact of the return of money or goods to the lender.
Payment of interest at the rate agreed upon in the contract for the period of actual use of the loan received.

Some commercial banks deliberately delay issuing the contract after signing so that the borrower loses the opportunity to refuse cooperation within fourteen calendar days. This is a gross violation of the procedure for concluding a credit transaction, which violates the borrower’s right to withdraw consent to receive a loan. If the dates of signing and receiving a copy of the agreement in hand are different, the period should be counted from the moment the lender transfers to the borrower a copy of the document with wet seals.

The contract termination process is affected by:

Targeted nature of the transaction.
Availability of additional paid services, including insurance.
The amount of commission and interest payments paid by the borrower.
Initial term and selected payment schedule under the agreement.
Availability of a down payment.
Using collateral and signing a surety agreement.

After the official termination of the agreement, the lender undertakes to immediately return to the borrower the payments associated with the loan. The one-time commission and initial payment are returned within seven days from the date of termination of the transaction. For each day after the fact of repayment of funds, the lender undertakes to pay the borrower a penalty, the amount of which is about 1% of the amount to be repaid.

The loan repayment procedure is regulated at the state level, so a financial institution does not have the right to demand payment of any penalties for refusal to lend or early repayment of debt. Interest is calculated solely taking into account the actual duration of the transaction. The borrower should also ignore the moratorium on early repayment of debt, since it only becomes effective 14 days after signing the documents.

When a loan is taken out from a bank or other financial institution, a written agreement on all essential points must be concluded.

In some cases, it can be terminated early.

We will tell you how a loan agreement is terminated at the initiative of the debtor.

This action usually occurs when a debt is paid off early.

In this case, the parties sign a separate document confirming the fulfillment of all obligations of the lender and borrower. In addition, emphasis is placed on loan repayment, including, and the absence of mutual claims.

The credit transaction itself may indicate a list of other grounds on which it can be terminated early by mutual expression of will.

In Art. 451 of the Civil Code of the Russian Federation states that the reason for ending the relationship is a significant change in the circumstances on which the conclusion of the agreement was based. Most often, borrowers operate with this rule due to a deterioration in their standard of living (dismissal with the closure of an enterprise, a sudden serious illness, and so on). However, practice shows that creditors rarely meet their clients halfway on a voluntary basis. Therefore, most likely, legal proceedings with the bank are forthcoming.

Termination of the loan agreement entails the end of additional obligations. First of all, this applies to collateral, surety, as well as property insurance (if money was allocated for its purchase).

If the obligations were secured by the same collateral, then after signing the agreement to close the loan, care should be taken to exclude the imposed encumbrances from the relevant state registers.

This does not happen automatically, so you need to submit a special application to the creditor.

Then it is useful to contact a notary and check whether the pledge entry has been removed from the register of movable or immovable property.

Externally, the agreement should look exactly the same as the main contract. For example, if the loan was issued by a notary (as is the case with a mortgage), then the termination of the relationship occurs in the same way.

Unilateral termination and procedure for terminating the contract

Each party (borrower and lender), under certain circumstances, has the right to insist on premature termination of the contract.

The reasons for this can be set out both in legislation and in individual clauses of the agreement.

If we talk about the person applying for the loan, then reality shows that the borrower has very little room for maneuver.

In addition to a significant change in circumstances, the following could theoretically be grounds for termination of the contract:

refusal of the lender to provide funds after signing the transaction;
a significant change in the terms of the loan unilaterally (increasing the interest rate, introducing additional fees) as a result of which the payer’s expenses significantly increase.

You can’t just stop paying your loan. You need to write a statement to the bank about your intention to terminate the relationship. According to the law, unless otherwise specified in the loan agreement, it is considered within a month.

If the creditor does not object, then an agreement to terminate the contract is signed. Otherwise, the borrower should start preparing a lawsuit. It is advisable to involve an experienced lawyer in cooperation. He will do his work on the basis of available documents and current legislation. Judicial practice will also be taken into account.

Early loan repayment

This is the most common case of termination of a relationship with a bank.

True, some financial institutions may impose sanctions for premature closure of debt. Therefore, you should carefully study the terms of the loan agreement.

On the day of payment, you should withdraw the exact amount, down to the kopecks. It happens that a symbolic amount (one ruble, for example) may be subject to serious penalties over time.

Practice shows that in many cases, when the debt is paid early, an agreement to terminate the contract is not drawn up. Instead, the former borrower is given a certificate of loan repayment.

If the loan was insured, you can also try to get back the unused portion of the insurance. To do this, a corresponding application is written to the bank or insurance company.

After paying the funds, it is advisable to notify the bank in writing. It would also be useful to attach a copy of the payment receipt to the notice.

Cancellation of a loan agreement by court decision

This term can be understood as:

forced termination of the loan agreement;
invalidation of the contract.

The second option is possible when the required form of the transaction is not followed or it is signed on behalf of the borrower by an incapacitated entity.

You can also challenge the agreement in the case where the lender did not have a license or it was revoked at the time of signing the documents.

As judicial practice shows, claims are mainly satisfied on the grounds that the bank forcibly changed the terms of the loan (increased interest rates without the consent of the borrower, introduced commissions not provided for by law).

Very often, borrowers justify their claims with sudden changes in life circumstances (dismissal, birth of a child, and so on). However, courts rarely agree to satisfy claims. They justify their refusal by the fact that the person should have foreseen the onset of unfavorable circumstances for him even at the stage of signing the agreement.

When can you not request termination?

It is practically impossible to terminate a loan agreement in a situation where there is overdue debt.

Moreover, in this case, unpleasant communication with collectors is possible.

The agreement with the bank itself may clearly state that the borrower does not have the right to terminate the relationship early on his own initiative.

An interesting question is whether it is still possible to go to court in order to terminate the loan agreement and, accordingly, fulfill your obligations to the bank through the FSSP within the framework of the law without accruing additional penalties and punitive actions of the bank?
Natalia

Natalya, good afternoon! By law, the possibility of early termination of a credit (loan) agreement due to violation of its terms by the borrower is provided specifically to the lender

Art. 14 Federal Law of December 21, 2013 N 353-FZ
“About consumer credit (loan)

2. In case of violation by the borrower of the terms of the consumer credit (loan) agreement regarding the repayment terms amounts of the principal debt and (or) payment of interest for a duration (total duration) of more than sixty calendar days, during the last one hundred and eighty calendar days, the creditor has the right to demand early repayment of the remaining amount of the consumer loan (loan) along with the interest due and (or) termination of a consumer credit (loan) agreement, by notifying the borrower of this in the manner established by the agreement and setting a reasonable period for repayment of the remaining amount of the consumer loan (loan), which cannot be less than thirty calendar days from the date the lender sends the notification.
3. If the borrower violates the terms of the agreement and for a consumer loan (loan) concluded for a period of less than sixty calendar days, for a period of repayment of the principal amount and (or) payment of interest with a duration (total duration) of more than ten calendar days, the creditor has the right to demand early repayment of the remaining amount of the consumer loan (loan) along with interest due or termination of the contract, notifying the borrower about this in the manner established by the agreement and setting a reasonable period for repayment of the remaining amount of the consumer loan (loan), which cannot be less than ten calendar days from the date the lender sent the notification.

You can also go to court with a claim to terminate the contract due to a significant change in circumstances on the basis of Art. 451 GK

2. If the parties have not reached an agreement to bring the contract into compliance with significantly changed circumstances or to terminate it, the contract may be terminated and on the grounds provided for in paragraph 4 of this article, changed by the court at the request of an interested party if available at the same time following conditions:
1) at the time of concluding the contract, the parties assumed that such a change in circumstances would not occur;
2) the change in circumstances was caused by reasons that the interested party could not overcome after their occurrence with the degree of care and prudence that was required of it by the nature of the contract and the conditions of turnover;
3) execution of the contract without changing its terms would so violate the relationship of property interests of the parties corresponding to the contract and would entail such damage for the interested party that it would largely lose what it had the right to count on when concluding the contract;
4) it does not follow from customs or the essence of the contract that the risk of changes in circumstances is borne by the interested party.

The court may satisfy such a claim if all four of the above conditions are met. Other options are to negotiate with banks on restructuring on terms acceptable to you