Arrears: what follows the first missed instalment
Short answer
On late payment the lender is entitled to compensation for the delay and, on material default, may declare the loan immediately due — but both follow rules rather than free discretion.
Compensation for delay, not an uncapped penalty
Compensation is due for the delay, with the statutory interest rate as its minimum measure. Penalty clauses that in practice work around the cap on the total cost of credit appear often in disputes — the court assesses whether such a clause is valid or conceals a cost that should have been inside the APR.
Acceleration of the debt
This means the whole obligation becomes due at once rather than in instalments. It does not happen silently or by itself: it requires a basis in the agreement and a proper declaration by the lender that has reached the borrower.
Debt collection: what is allowed
Selling the receivable to another company is lawful and does not require your consent, but the debtor must be notified. Harassment, threats, disclosing the debt to third parties or posing as a state authority are not allowed — these are practices you report.
Frequently asked questions
- Can the debt be sold without my consent?
- Assignment of a receivable does not require the debtor’s consent, but the debtor must be notified so they know whom they owe. The contract terms do not worsen merely because of the transfer.
- Is there a limitation period for such debts?
- Limitation is a matter of law and runs under rules that differ by type of claim. Whether it has expired in a specific case is a legal assessment and must be raised in time.
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