Russians warned about fines for early repayment of a loan at a bank

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In case of early repayment of debt, some banks may charge the borrower with a penalty for breach of contract. On Tuesday, May 4, the lawyer, managing partner of AVG Legal Alexey Gavrishe told about this in an interview with the Prime agency.

According to the specialist, loan agreements usually provide for the possibility of early repayment of debt. Since 2011, Russian banks have been obliged to provide such a right to borrowers, without requiring additional payments and commissions in return. If the agreement with the bank does not include such a clause, the borrower must notify the bank of his intention to repay the loan ahead of schedule 30 days in advance.

“Banks have no right to refuse a client’s intention to repay their debt ahead of schedule. Therefore, if bank employees refuse to accept your application or hinder you in some other way, ask to justify the actions in writing. Such a document will subsequently help you protect your rights, “said Yegor Redin, managing partner of the law firm Position Prava.

In the event that the borrower was fined for early repayment, Gavrishev advised to challenge such a decision in accordance with Article 809 of the Civil Code of the Russian Federation and write a statement demanding to cancel the penalty for early repayment of the loan.

In addition, after paying off the debt, it is recommended to request from the bank a notification or an official letter on letterhead signed by the responsible officer and stamped, documenting that the obligations to the credit institution have been fulfilled.

On April 29, Dmitry Ferapontov, senior lecturer at the Department of Banking at Synergy University, warned Russians against repaying loans through ATMs. According to the specialist, mistakes when paying for loans through ATMs are not typical, but still possible. Also, the risk of losing money due to the actions of fraudsters is not excluded.