In the personal secured loans, the customer is liable for the fulfillment of its obligations (repayment of the amount borrowed, interest payments and bank fees agreed) with all its assets, present and future. Therefore, it is standard practice that the lending bank, before granting credit, supporting customer requests of their income (salary, income from rental …), an inventory of its assets or an affidavit of their assets and perform checks on the existence and location of it.
If the client is delayed in regular payments (interest, bank charges) or refund the amount drawn in relation to the agreed dates, will be paid to the lending institution some additional interest known as “arrears”. The default interest rate is usually much higher than normal interest rate credit. The calculation of default interest contained in the contract document.
In addition, banks usually charge a “fee claim” amounts outstanding customer claiming overdue payments. The amount of this commission will be set out in the contract document.
If the delay or default is prolonged, and the non find a solution to this situation with the client, it can try to recover the outstanding lien on property and ownership rights of the client, following the procedure stipulated by law (Civil Procedure Act).
If a credit account with the additional guarantee of one or more guarantors (“security clause”) and credited the client defaulted, the institution may be addressed directly to the / the guarantor / s for the recovery of outstanding payments. Each of the Guarantors jointly and severally liable for all outstanding obligations of the debtor client in case of default (unless the benefit of “excursion” and “division”).
In the case of loans to finance a product or service, so that there is prior agreement between the exclusive supplier of the goods or services and the credit institution, the customer may assert against the lender have the same rights against the supplier of goods or services. (Article 15 of Law 7 / 1995 of March 23, Consumer Credit).