The bank terminated the agreement unilaterally: when a bank can terminate a loan agreement

The idea of ​​terminating a loan agreement with a bank

, as a rule, comes to the borrower against the background of discovering his inability to repay the loan, even partially, and the accumulation of debt, to which a penalty is added. Termination of the contract terminates the obligations of the parties, and this is the result that is being counted on.

Indeed, the general provisions of the law on contractual obligations allow the termination of any contract

. This can be done by agreement of the parties (in credit legal relations - the bank and the borrower), or by a court decision if an agreement has not been reached. In addition, it is permissible for one of the parties to refuse to perform the contract without the consent of the other party, which also entails termination of the contract.

In relation to the loan agreement and the borrower’s obligation, there is only one problem

- it is extremely difficult to find a legal basis for termination, and even more difficult to prove its existence. Therefore, if we turn to practice, then in recent years there is not a single case where a loan agreement was terminated solely on the initiative of the borrower. There is a right and opportunity, but implementing them with a positive result is unlikely.

Grounds for termination of a loan agreement

There are no special reasons. Borrowers can use those that apply to any agreement:

1. Agreement of the parties (bank and borrower).
2. By court decision, if:

• the bank significantly violated the terms of the agreement, and such violation resulted in damage to the borrower, depriving him to a significant extent of what he expected when entering into the agreement;
• the borrower refers to the grounds expressly provided for in the loan agreement for its termination.

1. A significant change in the circumstances from which the bank and the borrower proceeded when applying for a loan is one that, if foreseen, would have forced the borrower to refuse the loan or enter into an agreement on completely different conditions. A prerequisite for the application of this basis is the combination of the following factors:

• when applying for a loan, the parties assumed that the changes referred to by the borrower would not occur;
• the reasons for the changes could not be overcome by the borrower after they occurred with a due degree of prudence and careful attitude towards fulfilling the terms of the loan;
• execution of the agreement would violate the balance of the interests of the bank and the borrower arising from it and would entail causing damage to the borrower with a significant deprivation of what he expected under the agreement;
• the terms of the loan do not stipulate that the risk of changing circumstances lies with the borrower.

Of all the above grounds, only one can be called more or less applicable - a significant change in circumstances. As a rule, it is used when borrowers go to court. Among the reasons for changes in circumstances, illness, loss of work, a serious reduction in income, etc. most often appear. Less often, borrowers refer to various types of natural disasters, emergencies and everything else that usually refers to force majeure. At the same time, all these reasons and grounds are not taken into account by the courts due to the weighty position of the bank - they could have been foreseen by the borrower at the time of concluding the loan agreement. Moreover, there is practically nothing to counter such bank arguments with:

• when referring to dismissal, illness, decrease in income and other circumstances of a serious deterioration in the financial and material situation, the bank has one answer - these circumstances are surmountable (you can find a new job, open a business, recover, etc.);
• When referring to force majeure circumstances, banks justify their disagreement with the termination of the loan agreement with a very simple argument - the borrower was offered insurance, but he refused, or the borrower himself did not take measures to obtain insurance, that is, he could have foreseen various force majeure events and could have Moreover, insure yourself against their consequences.

The position of a borrower who has become terminally ill looks more weighty. You can also try to prepare an evidence base, justifying the fact that the borrower could not foresee force majeure circumstances and could not insure against them. But this is extremely difficult to do even with the involvement of a good lawyer. Arguments should be as uncontroversial as possible.

How to terminate a contract

Termination of a loan agreement requires a preliminary resolution of the issue in a pre-trial manner. The borrower must send the appropriate notice to the bank and justify the reasons for termination. And only if no agreement is reached does the right to go to court appear.

A statement of claim is sent to the court demanding termination of the loan agreement. The case is being considered as usual. The probability of a positive outcome is close to zero. Taking this into account, as well as assessing the cost of effort and money for the trial, it is worth thinking very carefully about your legal position, and most importantly, the evidence of the existence of grounds for terminating the contract.

Remember that the outcome of the case may depend on the correctness of the statement of claim in court.

. If you have any difficulties, then you can use help to terminate loan agreements.

Legal assistance to debtors

Recently, situations have arisen when borrowers experience financial difficulties and cannot pay the loan they have taken out; in this regard, the question arises about the possibility of terminating the loan agreement. This article is devoted to the peculiarities of the procedure for terminating a loan agreement.

The bank sued

You see these fines and penalties - this is a penalty. You can reduce the penalty if it is clearly disproportionate to the amount of debt, which consists of the principal debt and interest accrued under the agreement. I would like to note right away that I am asked a million questions about how in court to achieve repayment of only the principal amount of the debt without interest, because the borrower considers it unfair that he “paid and paid” so much, but the debt did not decrease, and he also has to pay interest .

So, it is impossible to reduce the amount of the principal debt (the body of the loan) and accrued interest under the agreement. You signed this agreement. But the penalty can be reduced, because in the case of a loan agreement for an individual borrower, the lender does not have additional costs associated with your delay. The bank’s milk has not gone sour, there is no downtime of equipment - therefore, there are no direct losses for the bank due to your late payment.

Overstatement of penalties

But banks often don’t think so and often seriously overestimate the penalty, although recently there are much fewer such cases, because borrowers have begun to understand their rights and are increasingly using Art. 333 of the Civil Code of the Russian Federation in their own interests and reduce the penalty, and this often delays the process. The bank is interested in receiving a court decision that has entered into legal force as quickly as possible - therefore, large serious banks Sberbank, VTB24 and even Tinkoff have not recently suffered from inflated penalties in the statement of claim.

And I want you to understand that the bank can demand from you in pre-trial order, for example, a debt on the loan and interest of 500 thousand rubles and declare the same penalty of 500 thousand rubles, and in court indicate fines and penalties in the claim - only 50 thousand rubles so that there is no unnecessary red tape and time delays.

The procedure for terminating a loan agreement with a bank

Cancellation of a loan agreement in the early stages after conclusion:

• The law provides for the possibility of canceling a loan agreement before the borrower receives funds. To do this, the borrower must submit a written application to the bank to cancel the loan agreement because funds have not yet been received.
• The Consumer Credit Law allows for the possibility of canceling a loan within 14 days from the date of receipt of funds. But in this case, the borrower will be required to pay interest
  for those days that the borrower actually used the loan funds.
• Early repayment of the loan with payment of actually accrued interest is also allowed. In this case, the borrower must write an application to the bank for early repayment of the loan.
• It is also possible to terminate the loan agreement by agreement between the bank and the borrower. In this case, it is necessary to conclude a written agreement under which the loan agreement is terminated and to specify in detail the conditions for the borrower to return the loan funds, accrued interest and penalties if there was a delay in payments.

Refinancing a mortgage with another bank: a guide to action

It should be noted that transferring a mortgage loan to another bank is not an easy task. It is not always possible for a person to adequately evaluate all payments and correctly calculate the balance of the transaction. In addition, in order to know the latest and “tastiest” loan offers, you need to study the mortgage market itself and monitor all its players, not only large ones, but also less significant ones. It is unlikely that the average citizen has enough time to efficiently complete this very specific task. But who then will help you save money and make the right decision, and also explain how to refinance a mortgage in another bank for your own benefit?

Termination of the loan agreement unilaterally

If it is not possible to reach an agreement with the bank on terminating the loan agreement on compromise terms, then you can try to terminate the agreement unilaterally, that is, at the request of the borrower.

1. Termination of the contract in pre-trial order.
   The borrower can write an application to the bank to terminate the loan agreement. And in the application it is necessary to indicate the reasons for terminating the contract - deterioration of the borrower’s financial situation, loss of work, illness, disability, etc.

   Banks, as a rule, are reluctant to terminate a loan agreement because in this case, the bank loses profit. Most likely, the bank can offer the borrower a loan restructuring, i.e. reduce the monthly payment amount and at the same time increase the loan term. If the borrower agrees to the installment plan offered by the bank, then you can continue to pay the loan on the changed terms.

   But, if the borrower firmly insists on terminating the loan agreement, and the bank refuses, then it is possible to go to court with this requirement.

   Important!

   Submitting a written application to the bank to terminate the loan agreement should always precede going to court on this issue.

2. Termination of a loan agreement in court.
   If the bank refuses to terminate the loan agreement or does not respond to the borrower’s written application within a month, then the borrower can file a claim with the bank to terminate the agreement.

   Grounds for termination of a loan agreement in court:

   • The borrower has the right to demand termination of the loan agreement if the bank has transferred less loan funds than provided for in the agreement;

   If the bank violates the terms of the agreement: the interest on the loan is increased unilaterally;

3. commissions are written off improperly;
4. penalties (penalties) are unlawfully applied.
5. Also, the borrower may demand termination of the loan agreement due to a change in life circumstances that the borrower could not foresee and, in the presence of these circumstances, the borrower would not have issued a loan under these conditions.

These circumstances must really be significant

, the occurrence of which the borrower did not expect (fire, flood, other natural disasters, military operations, emergency, serious illness). The court may refuse to terminate the loan agreement on this basis due to the loss of the borrower’s job because this circumstance could have been expected.

If the court decides to terminate the loan agreement, then the decision indicates the need for the borrower to return the funds received from the bank, payment of actually accrued interest, and also resolves the issue of penalties if there was a delay on the loan.

A loan agreement between a banking institution and a borrower can be terminated by agreement of the parties and/or by a court decision - this is specified in Article 450 of the Civil Code of the Russian Federation.
There are a number of situations in which a borrower must know how to properly terminate a loan agreement so that he does not have problems in the future. Table of contents:

Early repayment of the loan amount

In a loan agreement, the parties may grant the lender the right, upon the occurrence of certain conditions, to demand early repayment of the loan.

In addition, even if such a condition is not in the agreement, by force of law the lender may require the borrower to repay the loan early and pay interest in cases where the borrower violates the terms of the loan agreement by:

• return of the received loan amount in parts (clause 2 of Article 811 of the Civil Code of the Russian Federation);

• ensuring the fulfillment of obligations under a loan agreement (Article 813 of the Civil Code of the Russian Federation);

• targeted use of the loan (clause 2 of Article 814 of the Civil Code of the Russian Federation);

• ensuring the ability of the bank to exercise control over the intended use of the loan (clause 2 of Article 814 of the Civil Code of the Russian Federation).

Question: is the right to early repayment of the loan a right to terminate the contract unilaterally?

Answer: no, it is not.

Judicial practice indicates that sending a request to the borrower for early repayment of the loan and interest or going to court with such demands does not indicate unilateral termination of the contract. The bank’s demand to fulfill the borrower’s obligations to repay the funds cannot be identified with the termination of the transaction, since it is aimed at the bank’s early receipt of fulfillment from the borrower, and not at terminating the credit relationship. Therefore, in connection with the bank’s request for early repayment of the loan, the obligations under the loan agreement do not terminate.

The difference lies primarily in the period up to which the borrower is obliged to pay interest on the loan. In case of a request for early repayment of the loan, the borrower will have to pay interest on the use of the loan for the entire period until the moment when he actually repays the loan. If the courts recognized the requirement for early repayment of the loan as termination of the contract, then interest would cease to accrue at the moment of such termination.

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Example from practice: the court found that the requirement for early repayment of the loan is not identical to unilateral termination of the contract, and therefore interest and penalties must be paid for the entire period before repayment of the loan

The bank filed a lawsuit against the borrower to collect interest on the loan agreement and penalties for late fulfillment of obligations to repay the loan.

The court of first instance found that, by a court decision in another case, the loan amount under the loan agreement was collected from the borrower ahead of schedule, and the collateral was also foreclosed on. By presenting a demand for early repayment of the loan, the bank essentially announced a unilateral refusal to fulfill the loan agreement. Satisfying this requirement entails the same consequences as terminating the contract. Consequently, the obligation to pay interest for using the loan, as well as penalties that were provided for in the loan agreement, ceased from the moment the court decision entered into force in another case on early collection of the loan (clause 2 of Article 453 of the Civil Code of the Russian Federation).

The appellate court upheld the decision of the trial court. He noted that the bank justified the demand for early repayment of the loan by the fact that the borrower violated the terms of the loan agreement regarding the timing of repayment of the next part of the loan. A significant violation of the contract by one of the parties is grounds for its termination (Clause 2 of Article 450 of the Civil Code of the Russian Federation). Unilateral refusal to fulfill an obligation, which in credit legal relations is expressed in the presentation of a demand for early repayment of the loan, entails the same consequences as termination of the contract, that is, termination of obligations (clause 3 of Article 450 of the Civil Code of the Russian Federation).

The cassation court overturned the judicial acts and issued a ruling to satisfy the bank's claims. As the court of cassation indicated, the will of the creditor, declaring a demand for early repayment of the loan, is aimed at early receipt of performance from the debtor, and not at terminating the obligation to return funds and pay interest for the use of them. In this regard, after the entry into force of a judicial act on satisfying the bank’s request for early collection of the loan, the lender retains the opportunity to present additional demands to the borrower related to the debt under the loan agreement (collection of contractual interest, penalties, foreclosure on the collateral, filing claims against guarantors, etc.), up to the actual execution of the court decision to collect the debt under this agreement (clause 8 of information letter No. 147).

The panel of judges of the Supreme Arbitration Court of the Russian Federation came to a similar conclusion. Agreements for the provision of a credit line have been concluded between the bank and the borrower. Due to improper fulfillment of obligations under loan agreements, the bank sent notices to the borrower about the repayment of overdue debt and interest. Since the borrower did not comply with these requirements, the bank appealed to the arbitration court. The dispute reached the cassation court, which sent the case for a new trial to the court of first instance so that it could check the validity of the calculation of interest.

The bank filed a supervisory appeal, but the panel of judges of the Supreme Arbitration Court of the Russian Federation refused to transfer the case to the Presidium, noting that the cassation court actually had the right to send the case for a new trial in order to investigate the circumstances relevant to the case. But at the same time, the judges of the Supreme Arbitration Court of the Russian Federation specifically emphasized: the cassation court erroneously found that the bank’s demand for early repayment of the loan is a unilateral termination of the loan agreement. In itself, the requirement for early repayment of the loan cannot be qualified either as a requirement to terminate the contract, or as a unilateral refusal to fulfill obligations. Thus, the bank, when making a demand for early repayment of the loan, did not demand termination of the loan transaction, and such a condition is not contained in the text of the loan agreement. This requirement is aimed at the creditor receiving early performance from the debtor, and not at terminating legal relations under the loan agreement (determination of the Supreme Arbitration Court of the Russian Federation dated June 7, 2011 No. VAS-5548/11).

Thus, if the bank requests early repayment of the loan, this does not mean termination of the loan agreement. Consequently, all obligations under the loan agreement are preserved until they are fulfilled.

In addition, if a guarantee agreement has been concluded, then the obligations arising from the guarantee agreement also continue to exist. Accordingly, a claim can be made against both the borrower and the guarantor to collect the debt under the loan agreement.

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Example from practice: the court recognized: if the bank makes a demand for early repayment of the loan, then neither the loan agreement nor the guarantee agreement terminates the obligations

Bank and LLC "F." (borrower) entered into a loan agreement. Fulfillment of obligations of LLC "F." under the loan agreement it is secured by the guarantor - CJSC "A." Due to the borrower’s violation of the debt repayment schedule, the bank filed a lawsuit against the borrower and the guarantor for jointly and severally collecting the debt and foreclosure on the borrower’s property.

The court of first instance satisfied the claims.

JSC "A." filed a claim with the arbitration court to cancel the decision of the first instance court.

In his opinion, the bank, by presenting a demand for early repayment of funds, thereby unilaterally completely refused to fulfill the loan agreement, which resulted in its termination and terminated all obligations under the loan agreement.

However, the courts indicated that the requirement for early repayment of the loan does not indicate the bank’s unilateral termination of the agreement within the meaning of paragraph 3 of Article 450 of the Civil Code of the Russian Federation. The lender fulfilled its obligations under the agreement in full by providing a loan to the borrower, thus, the bank’s actions to request the loan early cannot be considered as termination of the agreement. In addition, the right to early withdrawal of the loan by the bank is agreed upon by the parties in the loan agreement (determination of the Supreme Arbitration Court of the Russian Federation dated July 27, 2011 No. VAS-9540/11).

The courts made similar decisions in other cases (decrees of the Supreme Arbitration Court of the Russian Federation dated March 31, 2011 No. VAS-3414/11, dated August 1, 2011 No. VAS-484/10, decisions of the Federal Antimonopoly Service of the Volga-Vyatka District dated August 11, 2011 in case No. A11-5394/2009, FAS North-Western District dated June 17, 2011 in case No. A66-6461/2010).

At the same time, there are isolated cases when courts regard a bank’s demand for early repayment of debt under a loan agreement as precisely its unilateral termination of the loan agreement. According to the court, if a bank demands early repayment of a loan, this means a requirement to terminate the loan agreement with all the ensuing consequences associated with the termination of obligations under the loan agreement. Therefore, the bank has the right to make a demand for collection of the principal debt, interest for using the loan, as well as penalties for timely repayment of the loan only before the date of termination of the loan agreement. After termination of the loan agreement, they cannot be collected, since the obligation under the loan agreement ceased due to early collection of the debt.

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Practical example: the court regarded the bank’s demand for early repayment of the loan as a unilateral termination of the loan agreement

A loan agreement was concluded between the bank and LLC “A” (borrower). The agreement provides for the right of the bank to unilaterally, out of court, demand early repayment of the loan, payment of interest, and collect the debt from the borrower in case of violation of the deadline for payment of interest for using the loan and the deadline for repayment of part of the loan.

Due to the failure to repay the debt under the loan agreement, the bank filed a lawsuit to collect it. The courts rejected the bank's argument that, despite the demands for early repayment of the loan, the agreement was valid. The contract is considered terminated in the event of a unilateral refusal to perform it, when such refusal is permitted by law or agreement (clause 3 of Article 453 of the Civil Code of the Russian Federation). Unilateral refusal to fulfill the agreement by the bank is permitted by presenting a demand for early repayment of the loan amount with payment of interest, if the agreement provides for the repayment of the loan in parts (clause 2 of Article 811 of the Civil Code of the Russian Federation). Upon termination of the contract, the obligations of the parties cease. Early repayment of the loan involves stopping the use of loan funds. The presentation by the bank of demands for the repayment of debt under the loan agreement ahead of schedule indicates its unilateral termination of the agreement.

Unless otherwise follows from the agreement of the parties, termination of the contract entails the termination of obligations for the future and does not deprive the creditor of the right to demand from the debtor the amount of the principal debt and property sanctions accrued before the termination of the contract in connection with non-fulfillment or improper performance of the contract (clause 1 of the information letter of the Presidium Supreme Arbitration Court of the Russian Federation dated December 21, 2005 No. 104 “Review of the practice of application by arbitration courts of the norms of the Civil Code of the Russian Federation on some grounds for termination of obligations”).

After termination of the loan agreement, the bank has the right to make a demand for collection of debt and interest for using the loan before the date of its termination. In the future, the creditor has the right to make a claim for the recovery of interest in accordance with Article 811 of the Civil Code of the Russian Federation in the amount provided for in paragraph 1 of Article 395 of the Civil Code of the Russian Federation, that is, for the unlawful use of someone else’s money. The accrual of interest at contractual rates after termination of the loan agreement is unlawful, since the obligation to pay interest ceased with the termination of obligations under the loan agreement in connection with the early collection of debt. Also, a penalty for untimely repayment of the loan is not subject to accrual after termination of the contract (resolution of the Federal Antimonopoly Service of the East Siberian District dated April 6, 2011 in case No. A33-5284/2010).

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Termination of a loan agreement by agreement of the parties

By agreement of the parties, the loan agreement can be terminated in two cases - the loan amount has been fully repaid, or the term of the agreement has expired, but the debt remains.

The debt has been repaid in full

According to Article 408 of the Civil Code of the Russian Federation, when the debt is repaid, the loan agreement between the banking institution and the borrower automatically ceases to exist. In this case, the borrower does not need to sign any additional documents - we are talking about the termination of a loan agreement or an additional agreement on an already paid loan.

Unfortunately, after repaying the loan, borrowers do not think about the fact that they may have other obligations to the bank. For example, during the signing of a loan agreement, obligations to pay a credit account or bank card were also signed. These contracts are not automatically terminated, even if the borrower has fully repaid the loan. Over time, he accumulates new debts (for example, payment for maintaining a bank account), the institution imposes fines and penalties on it - the amount can become quite large.

Important!
To prevent the above from happening, the borrower, after repaying all debt under the loan agreement, must contact the bank and write an application to terminate the related agreements. Immediately after accepting such an application, you must request a certificate from the bank stating that the borrower does not have any debts to the institution.

Debt not repaid

It often happens that the loan agreement has expired and the debt has not yet been repaid. The expiration of the loan agreement is not a reason for its automatic termination; the borrower will have to pay the entire loan amount, interest and penalties/fines imposed by the bank in connection with late payments.

The most reasonable solution is to contact a banking institution with an application for debt restructuring. Banks, as a rule, do not refuse such a request from clients, it becomes easier for borrowers to pay and they successfully complete their credit epic. If the restructuring is unsuccessful, then it makes sense to go to court - let it decide on the legality/illegality of the refusal. By the way, a court decision may be made to remove penalties and fines already imposed on the borrower - as a result, the amount of debt may be significantly reduced.

Please note:
there is no point in hiding from the bank due to debt under a loan agreement! The bank has the right; in any case, they will find an unscrupulous borrower and demand money from him.

Summary

• How to terminate a loan agreement after a court decision.
• Court decision on loan agreement
• Court decision on debt collection under a loan agreement
• Court decision to terminate the loan agreement
• Agreement of assignment after a court decision
• Court decision to terminate the loan agreement

Questions

1. How to terminate a loan agreement after a court decision.

1.1. If there are grounds, file an independent claim in court.

2. This situation: The bank filed a claim under the loan agreement, 50% of the payments were made under the agreement, after which no payments were made. To prepare for the case, the judge asked me to write statements that I agreed with the claim, and in the end they awarded an amount three times the amount of the contract. Is it possible to appeal the decision, especially since I later found out that the statute of limitations had passed.

2.1. Hello, Stanislav!

You can file an appeal against the court's decision. To accurately answer your question, you need to know the content of the court decision and the case materials.

Code of Civil Procedure of the Russian Federation Article 321. Procedure and deadline for filing appeals and presentations

1. An appeal or presentation is filed through the court that made the decision. An appeal or presentation received directly by the appellate instance shall be sent to the court that made the decision for further action in accordance with the requirements of Article 325 of this Code. 2. An appeal or presentation may be filed within a month from the date of adoption of the court decision in final form, unless other deadlines are established by this Code.

2.2. Appeal the court's decision. Apply Art. 333, 196 of the Civil Code of the Russian Federation, including the limitation period of three years.

2.3. You can appeal, but there won’t be much point. The statute of limitations should have been declared in the court of first instance; now it is too late to do so. You can try to reduce the penalties, but you need to look at the documents. You should have immediately gone to the lawyers with documents from the court if you didn’t understand anything about it. Why listen to the judge? He made it easier and faster for him to make a decision, now you pay. Before going to court, you need to go to lawyers and defend yourself correctly in court. And not agree with everything, and then only think about what to do when doing something is almost impossible.

2.4. Hello Stanislav! I recommend reading my article “How to cancel a court decision in a case of debt collection under a loan agreement” Read more >>>

For more detailed advice, it is necessary to study the court decision.

3. After the court’s decision on the loan agreement, the bank sold the loan to collectors, three years later, and now through the court the collectors are demanding a penalty from me for not paying this loan. Moreover, I paid the debt through the FSSP in 2020, and in August 2020, collectors sued me so that I could pay the fines. Is this legal and what should I do?

3.1. Penalties can be calculated up to the moment of actual repayment of the debt, and the court decision recorded the amount of the debt at the time the decision was made (or even at the time the claim was filed)

Early termination of the loan agreement

You can terminate a loan agreement early in different ways, it all depends on how exactly the loan agreement was concluded.

If the loan agreement involves a one-time receipt of borrowed funds from the bank, then the conditions for its early termination will be specified in the document. But even if there is no clause in the agreement itself, it will be automatically terminated upon repayment of the debt in accordance with Article 450 of the Civil Code of the Russian Federation.

If an agreement on the allocation of a credit line has been signed between the banking institution and the borrower and the debt has already been repaid, then in order to terminate the agreement (if there is no intention to use bank funds), you will need to contact the bank with an application. In the application, indicate your intention to terminate the loan agreement by agreement of the two parties, indicate that you have no debt on the loan.

Change of persons in the obligation in the mortgage lending agreement

Hello!

I have a question about a mortgage. My husband and I entered into a mortgage lending agreement, where he acts as the borrower, and a guarantee agreement was concluded with me. Although when calculating the mortgage, our total income was taken into account, i.e. We must be included in the agreement as co-borrowers. But bank employees assure us that it is their bank that has not introduced the concept of a co-borrower, but that there are only “borrower + guarantor-suppositor” or “borrower + guarantor-close relative”.

When concluding the mortgage agreement, we did not pay attention to this nuance, but now it is fundamentally important to me.

After all, how can I be a guarantor for my husband if my income is 2-3 times less than his. Now we would like to change the terms of the mortgage agreement so that we are either both co-borrowers (but this is impossible in this bank), or so that I am the borrower and my husband is the guarantor.

We recommend reading: If you are attached to one clinic and go to another

Tell me if this is possible and how

Termination of a loan agreement in court

The borrower may demand termination of the loan agreement in court:

• if one party (the bank in this case) significantly violates the terms of the agreement. Significant violations are considered to be actions of the bank that lead to significant damage to the borrower. For example, a bank illegally raises the interest rate, charges penalties and fines without justification, it carries out an illegal order of debt write-offs, and so on;
• if circumstances in the borrower’s life have changed dramatically. For example, he lost his job or is in a medical institution and faces long-term treatment.

In order for the termination of a loan agreement in court to be carried out competently, it is necessary to follow a certain algorithm:

1. Send a proposal to the bank to terminate the loan agreement.
   This can be done either by mail (issue a letter with acknowledgment of delivery), or by personally appearing at the office of a banking institution. If the application for termination of the contract is submitted in person, you will need to make sure that the records of the bank office contain a note indicating receipt of the letter/application. The bank must respond to the application within the period specified by the borrower in the letter. As a last resort, you will need to wait 30 days from the moment the letter was sent, and then you can go to court.

Prepare a statement of claim and submit it to the court. Such an application must be submitted only in writing and shall indicate:

• name of the court;
• name of the borrower’s place of residence and location of the banking institution;
• the essence of violations of the rights of the plaintiff (borrower);
• the circumstances by which the borrower is appealing and evidence of these circumstances;
• list of documents that are attached to the application.

The following documents must be attached to the statement of claim:

• copies of the statement of claim in accordance with the number of defendants;
• documents that confirm the circumstances that forced the borrower to file a lawsuit to terminate the loan agreement - a loan application, a loan agreement, a statement of the flow of funds in the account and any documents that are relevant to the case;
• receipt of payment of state duty (it is 300 rubles).

The claim is filed either directly by the plaintiff/borrower, or by his representative on the basis of a notarized power of attorney to conduct all affairs.

• Take part in the court hearing and receive a decision. Within 5 days from the date of filing the statement of claim, the court must decide whether it will take the case into proceedings. Then a preliminary hearing will be scheduled, where the court will clarify all the circumstances of the case, the opinions of both parties (the borrower and the representative of the banking institution) will be heard, and only then will the trial take place, at which the final decision will be made.

Please note: if for any reason the plaintiff cannot appear at the court hearing, then he is obliged to notify the court about this and attach documents to his application that confirm the presence of valid reasons.

Read also:  Is it worth hiring a lawyer in case of bankruptcy of an individual and how can he help?

The court decision comes into force after the expiration of the appeal period - as a rule, it is 30 days. If no complaints were filed by the banking institution, and the plaintiff is completely satisfied with the court’s decision, then the loan agreement will be terminated from the moment the court’s decision came into force.

Termination of a loan agreement is a quick process only if the debt is fully repaid. In all other cases, you will have to be patient and act strictly within the law.

Today, for a huge number of Russians, loans are perhaps the only way out in the process of solving material problems. At the same time, we should not forget that the procedure for obtaining borrowed funds from a bank is fraught with potential risks, which, when faced with, can dig a deep debt hole for oneself. That is why for many borrowers the question of how to terminate a loan agreement with a bank is of fundamental importance.

It should be noted that when a citizen borrows money from a banking institution, he signs a document about this, which is valid for a certain period of time. It would seem that everything is clear here. However, in life there are various circumstances that make it necessary to cancel the loan agreement ahead of schedule. However, we note that this procedure cannot be classified as simple. In this regard, the question of how to terminate a loan agreement with a bank requires detailed consideration.

There may be several reasons for canceling a loan agreement.

Cancellation of the contract

The loan agreement can be canceled until the money is released to you. This possibility is provided for by civil law. Don’t know how to terminate a loan agreement with a bank? Just don’t take the money, explaining your behavior by saying that you found offers with more favorable conditions. In this case, you will need to notify the financial institution of your decision.

In addition, there is another possibility to resolve the issue of how to terminate a loan agreement with a bank. You can cancel borrowed funds within two weeks from the moment they were issued to you. If you took out a targeted loan (for education, buying a car, etc.), then this period is thirty days. However, you should not forget that you will have to pay interest for the above periods of time, since you had the potential to use the funds.

At the same time, when terminating a loan agreement with a bank in this way, the law does not oblige you to notify the credit institution in advance of the decision.

How can you reduce the penalty?

So, what a penalty is and why it can be reduced is now clear. But in what case can it be reduced? Let's figure it out. As you already understand, the amount of the penalty is not justified by the bank - that is, there is no justification for the amount of the penalty. The penalty is disproportionate to the amount of obligations. In principle, an excessive penalty is considered to be one that exceeds 10% of the amount of obligations.

That is, theoretically, the penalty can be reduced by 90%. And it’s stupid to expect that if the debt is 100 thousand rubles and the penalty stated in the lawsuit is 2000 rubles, no one will reduce it. Although, perhaps, there will be judges who will reduce such a penalty, because the practice of reducing a penalty is completely different - sometimes the judge reduces 90%, sometimes cuts it in half, sometimes removes the zero from the figure.

You can ask - they won’t hit you in the forehead - and you can ask for a reduction by just 90%, and then how much the judge will reduce will be seen. But the principles of adequacy and proportionality must be used so as not to waste time. Because if the claim contains a normal penalty, there is no need to bother to appeal something or even go to court.

You have the right to apply for a reduction in the penalty. But the judge is not obliged to grant the request - that is, he has the right not to reduce the penalty. But to reduce the penalty automatically, if you didn’t ask the judge about it at all, he has no right at all. This allows the bank to cancel such a court decision if the judge arbitrarily reduced the penalty.

We suggest you read: Can bailiffs seize a savings book?

By the way, before we get down to ways to reduce fines, penalties and penalties in court, you need to understand one more important detail. Until now (perhaps and will continue to do so for a few more years), judicial practice was based only on the fact of the debtor’s application for a reduction in the penalty, using it as a basis for the reduction.

At the moment, due to a number of new (2014, 2015, 2016) Plenums of the Supreme Court, Rulings of the Constitutional Court in cases of penalties, practice is beginning to change, obliging the debtor to prove the disproportionality of the penalty, so it is worth taking seriously the process of reducing the penalty, remembering that This is just the judge’s right to reduce it, and not a 100% guarantee. That is, we may soon have to prove the grounds for reducing the penalty.

If the judge nevertheless asked you to provide arguments that the penalty was disproportionate, be prepared to give examples of tariffs for fines of large banks (VTB, Sberbank). That is, in this case, you can take your friend who has a loan from Sberbank or VTB and go to the bank with him so that the bankers give the tariffs and certify with a seal. This is what you will take to court just in case. Of course, you don’t have to take it, but then you may have to go a second time.

Cancellation of a loan agreement by court decision

Do you doubt whether you can terminate the loan agreement? Rest assured, many do this by going to court. There are a number of grounds that allow you to write a statement of claim asking to cancel the loan agreement.

These include, in particular:

In any case, if you managed to terminate the loan agreement through a judicial procedure, then you are obliged to properly fulfill your obligations and return the money to the financial institution.

Fulfillment of loan obligations ahead of schedule

The surest way to cancel a loan agreement is to return the money to the bank early. Until recently, credit institutions in most cases used moratoriums and fees if the borrower intended to repay the loan early. However, now the situation has changed. Do you want to know, for example, how to terminate a consumer loan agreement? This can be done by repaying the debt early. The only thing you must do is notify the banking institution about the early fulfillment of obligations no later than 30 days before the loan repayment date, unless the terms of the agreement provide for a different period. In this case, any sanctions from the lender will be unlawful.

How to terminate a credit card agreement

Many people have credit cards with which they pay for goods or services. Of course, situations arise when a person no longer needs to use them, and he throws away the credit card or destroys it. However, taking such actions does not mean that you have terminated the contractual relationship with the financial institution.

Even if you burn the card, you will still have credit obligations to the bank. Naturally, you will still have to pay the costs of maintaining the account (mobile banking services, SMS notifications, etc.). Moreover, funds for the above services will be written off automatically, so after a certain period of time, debts to the bank may increase significantly, despite the fact that you do not use a credit card.

To reduce such risks to zero, you should cancel your account. To do this, you should never get rid of your credit card. In addition, you must clarify the full list of paid services and apply to disable them. You also need to find out the amount of debt on the card and pay it off. After this, you must send an application to the banking institution to close the account, which will not be canceled immediately, but after some time. You can find out exact information about termination of a loan agreement by calling an employee of a banking institution.

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.

Terminating a contract unilaterally can be done in two ways.

: by agreement of the parties or through the court.

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

Refusal of additional information in the contract

However, deposit or loan agreements often contain clauses that are not directly related to the terms of service or its parameters. Let’s say this is an opportunity for a bank to process a client’s personal data, incl. and to inform him about new services. On the Internet, many borrowers and depositors complain that financial institutions are literally attacking them with mailings or SMS advertising new banking products. There is a way to avoid this. To refuse to receive advertising offers, there is no need to change the standard text of the contract - the client can write a separate statement refusing such offers. In most banks, it is enough for the client not to check the box next to the corresponding item in the loan agreement.

SMS notifications and other services are usually sold separately, as an additional option, or the citizen needs to look for an item in the application form regarding the desire to receive this type of service.

Since the law establishes the right of the consumer to determine for himself the possibility of using personal data by the bank, such provisions are often given to the client to choose from, therefore in contracts he is given the right to make his own choice by putting a mark. ——————————————————————— Don’t forget to bookmark our website so that your financial literacy is at a high enough level and you can easily delve into the banking conditions contracts, adjusting them to suit you.

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 conditions specified 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 an 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.

How to refinance a mortgage in Sberbank and VTB 24

• compare the terms of on-lending of Sberbank and VTB 24 with the current terms of your loan, and the conditions must be significantly better than the current loan agreement
• submit all necessary documents for approval of refinancing; You can read about what documents are needed HERE
• If your candidacy is approved, the bank itself will pay off your debt, without your participation in mutual settlements, and the possible difference will be transferred to your current account
• Now all you have to do is re-register the mortgage agreement for the apartment from one bank to another
• if you obtain a mortgage refinancing from your own bank (which happens extremely rarely), re-registration of the collateral will not be required

At the initiative of the borrower

to terminate the contract at the initiative of the borrower 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 to draw 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 case of the latter reasons, the bank usually indicates that it was necessary 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 for bank employees to make a note 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 an application requesting debt restructuring

. The bank may agree with this formulation.

A 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 is better to indicate in the claim the violations that were committed by the bank

. The following violations are given as examples:

1. The agreement provided for a fee for opening a bank account
   and issuing a loan. The Bank does not have the right to charge additional funds for the provision of these services.
2. Violation of the order of
   loan repayment. 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.
3. The 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 a state fee 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 you properly prepare for the trial

, then there is still a chance to win the case.

Going to court will also require 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, and not to bring the matter to court, since in court proceedings 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: