Sometimes life turns out differently than you think – and not just in everyday life. Loans can suddenly turn out differently than agreed, and the bank can knock on the door and practically demand the entire loan repayment overnight. In which cases it would be possible, how to avoid it and whether you can defend yourself against it, we explain below.
Possible reasons for a bank loan cancellation
First of all: Such a termination on the part of the lender is legally permitted in certain cases. This is indicated in the general terms and conditions of the banks. The banks could take the following reasons to prematurely terminate the existing loans:
- Arrears of at least two monthly credit installments. Of course, the bank will not take immediate action to cancel the loan, but will try to persuade the borrower to make payments. The bank can only give notice of termination if there is no response. Attention: If the lender continues to do nothing, the bank will be able to demand the full amount back immediately. Here it is advisable to communicate with banks in order to find a solution together.
- Worsening economic conditions such as loss of job. Here, it is often enough for the banks to face the threat of deterioration – a precautionary termination can be given. The situation is very bitter for borrowers, but for this reason it is only possible to terminate the loan if the banks rate the probability of non-payment as very high. In other words, the financial situation must look much worse than it was before.
- The silence of changes and incorrect information provided by the lender make most banks really angry, so that lenders are often permitted to give legal notice here too – in special cases even without notice, i.e. without a warning.
Measures against cancellation of the loan
Ideally, you take your commitments seriously and adhere to all requirements – then you don’t have to worry about the loan being canceled. However, if things turned out differently and the loan was canceled, you have a few options to choose from. You can either reschedule and take out a new loan to pay off the old one. Furthermore, the owners of consumer loans can contact consumer protection to get possible help there.
Another option would be to take legal action against a loan termination – this would make sense if you are certain that it can prove that the bank was wrong (for example, that the economic situation is not wrong) has deteriorated significantly and repayments are possible, etc.).