The last loan payment is definitely a real treat for any borrower. After all, it is after this that you can finally feel like a full-fledged owner of a thing purchased on credit, be it an apartment, a car or just household appliances, and for some citizens this is also a great reason to think about getting a new loan. However, you should not rejoice ahead of time - after making the last payment, you need to check the status of your credit account so that later you suddenly do not find yourself among bank debtors.
Carelessness is the borrower's main enemy
Under the influence of joyful emotions from the long-awaited getting rid of credit obligations to the bank, many borrowers completely ignore some small nuances that can subsequently grow into huge debts. So, in consumer lending, an annuity debt repayment scheme is usually used, in which the amount of accrued interest and the principal debt on the loan is divided into equal monthly installments. True, the size of the last payment may differ from the previous ones both in the smaller and in the larger direction.
In addition, some credit organizations may make some kind of commission or, for example, an insurance fee in a separate payment, and this amount must be paid by the borrower after all the main payments have been made according to the schedule. This is where the catch lies for the enthusiastic bank client who didn't bother scrutinizing the loan repayment schedule. Having paid the last installment, the borrower completely forgets about the recent loan, and when the time comes to pay off the remaining amount of the debt, he does not even suspect that it exists. Meanwhile, the bank, on a completely legal basis, charges penalties and fines on the overdue amount of debt, the amount of which can sometimes reach impressive amounts.
At the same time, the verbal assurances of a bank employee that the loan has been fully repaid cannot always be trusted, since additional services (auto payment, SMS informing, Internet banking, etc.) can be connected to the credit account, for which the bank also charges a fee. That is why, after the full repayment of the loan, it is necessary to demand from the bank a written confirmation that it no longer has any claims against you.
Closing a credit account - algorithm of actions
In order to avoid unpleasant surprises, a certain algorithm of actions must be followed when fully repaying the loan. Before making your final payment, go to a bank branch and ask for a detailed credit statement and a new payment schedule to compare with the schedule issued when you took out the loan. It is good if the amount indicated in these two documents does not differ. If there is still a difference, then deposit the entire amount due for payment.
After making the last payment, notify the bank employee that you plan to close the credit account - you should be given a corresponding application form. Closing an account will take approximately 7-10 business days. After all the relevant applications have been completed, ask for copies with a receipt from the bank specialist who accepted the documents.
Take care in advance of disabling all additional services connected to the main account, because receiving bank statements and SMS notifications also costs money.
After closing the credit account, order a certificate of absence of debt to the bank (it must be issued on an officially approved form signed by the head of the bank branch and the seal of the credit institution). This document will subsequently become for you legal protection in court in the event of any material claims on the part of the creditor.
