Second, the consequences of owing small loans.
1. has incurred penalty interest and liquidated damages.
No matter where you apply for a small loan, you will sign a corresponding loan contract with the borrowing institution. Since the contract has been signed, of course, we should act according to the contract and fulfill the repayment obligation. Once the contract expires and the arrears are not paid, the first thing you encounter is the penalty interest, and some institutions will also charge a certain amount of liquidated damages according to the contract content. If you still don't pay back the money, then as time goes by, your penalty interest will increase, and the pressure of your repayment will increase in the future.
2. Personal credit information is affected.
It is only the first step to owe money without penalty interest, and then your personal credit will be affected. As we all know, China now attaches great importance to the construction of credit system and is making great efforts to build a credit China. Credit information systems in various regions, departments and fields are gradually being implemented, and various disciplinary and incentive measures are constantly being improved and upgraded. Personal credit will play an increasingly important role in future life.
Failure to repay the loan will leave a credit "stain" on the personal credit report, and the application for loans and credit cards will be blocked in the future.
At present, many financial institutions have access to the data of third-party credit reporting companies, and their lending data, shopping data, credit card repayment data and other information on other platforms can be easily retrieved. Once on the blacklist system of small loan companies, as long as one company refuses to lend, everyone will refuse to lend, and it is impossible to lend again in the future.
Step 3 collect frequently
There are three parts in loan collection: SMS, telephone and door-to-door. When the loan is owed in the early stage, the salesman of the small loan company will kindly remind himself by SMS or telephone: it is time to pay back the money. However, in the later stage, if the small loan company repeatedly reminds itself and urges itself to pay back the money, it is still indifferent, then it may be sent out in the form of a short message to let relatives and friends know that they borrowed money from outside and never paid it back, which will damage their reputation.
legal ground
Article 188 of the Civil Code of People's Republic of China (PRC)
The limitation period for requesting protection of civil rights from the people's court is three years. Where there are other provisions in the law, those provisions shall prevail.
The limitation period of action shall be counted from the date when the creditor knows or should know that the right is damaged and the debtor knows it. Where there are other provisions in the law, those provisions shall prevail. However, the people's court shall not protect the rights that have been damaged for more than 20 years. Under special circumstances, the people's court may decide to extend the time according to the application of the obligee.
Article 674
The borrower shall pay interest at the agreed time limit. If the time limit for paying interest is not stipulated or clearly stipulated, and cannot be determined according to the provisions of Article 510 of this Law, if the loan period is less than one year, it shall be paid together with the loan; If the loan term is more than one year, it shall be paid at the end of each year; if the remaining term is less than one year, it shall be paid together with the loan.