If you do not make the repayments of your loan or otherwise essentially breach the contract, the lender may demand that you pay early an instalment that is not yet due, or pay back the whole remaining amount of the loan. A lender may also take back the goods that you bought with credit, or impose other penalties.
The lender can only call in the loan or impose other penalties if these penalties are mentioned in the contract and if the payment is at least one month overdue.
In one-time loans, the overdue amount must also
- be at least 10% of the original loan amount;
- be at least 5% of the original loan amount if more than one repayment is overdue
- comprise the entire outstanding balance, or
- be at least six months overdue.
If the loan was granted to purchase a specific item, the percentages referred to above are calculated based on the credit price.
If the loan or a part of it is called in, the part of loan costs related to the loan period that will not be used must be deducted from the payment instalments the lender demands.
How soon do I have to pay if a loan is called in?
The lender may demand payment at the earliest four weeks after informing the consumer about calling in the loan. If the consumer has previously been warned because of an overdue payment or other breaches of contract, the loan can be called in two weeks after the consumer has been informed.
If the consumer pays the overdue amount during this time or rectifies any other breach of contract, the loan will not be called in.
Tell the lender if you cannot pay back the loan
You should tell the lender if you cannot pay back a loan because of illness, unemployment or some other reason that affects your ability to pay. If your payment is delayed for one of these reasons, the creditor may not be able to call in the loan or impose other penalties on you.