Banks always reserve the right to terminate without notice for good cause in their contractual terms. An important reason therefore exists if there is a significant deterioration of the assets. A negative credit bureau entry can be taken by banks as a reason for a loan.
The termination often comes at a unbelievable time.
If a current installment loan is canceled without notice, it must be repaid immediately. Consumers with poorer credit ratings expect all credit lines to be canceled. The current account of the checking account is affected as well as credit lines or credit cards with installment payment function.
If it comes to the cancellation of loans and no funds are available for repayment, the conversation with the bank must be sought immediately. The borrower should explain his situation and submit proposals on his own initiative. Not infrequently, a solution can also be found in a situation that at first appears hopeless.
The Bank may withdraw the installment of a installment loan and agree to a repayment agreement for the repayment or facility loan. If the borrower credibly demonstrates that he is capable of repaying his liabilities, the chances are good. The credit bureau information is only part of the credit and risk assessment by banks. The income is also relevant.
The situation is much more difficult if borrowers do not have a sufficiently high earning income.
B. slipped in the Hartz IV reference. In this case, the cancellation of all loans after a negative entry in credit bureau can hardly be avoided. The entry acts like a trigger in such situations. The highest priority must then be to secure one’s own existence.
If the bank blocks the checking account, a conversion to a Pfundenungschutzkonto can be requested. There has been a legal claim since last year. On the P account, the bank must indemnify incoming funds up to the amount of the non-pecuniary indemnity they may not offset their own claims. Exceptions are overdrafts of the account. With these the bank clears the current incomes. However, in the case of social benefits, the funds must be available for some time after the credit is given.
If an unexpected loan flaps into the house, consumers should first check whether a subsequently entered negative feature in the credit bureau is the cause. A significant part of the information shows errors which the credit bureau has to correct free of charge and without delay.