Before signing the loan agreement, you should be familiar with the bank enforcement order entry. It accurately describes the consequences and costs that threaten the debtor who stops paying the loan. That is why it is worth knowing what it means in practice.
What is a bank enforcement order?
A bank enforcement order is a way of safeguarding the bank’s interests, the meaning of which is expressed in simplified proceedings. It contains information to which financial claims will be exposed in the event of cessation of payment of installments. Pursuant to the wording of art. 96 of the Banking Act, banks may issue bank enforcement titles based on the books of banks or other documents related to banking operations. The provision on the bank enforcement title is very important, although usually at the end of the loan agreement. You should read it carefully before signing.
The bank enforcement order should contain:
- designation of the bank for which enforcement is to be carried out (bank name, address, branch / branch),
- designation of the debtor (name and surname or name of a legal person or other entity with legal capacity),
- amount of liabilities with interest and payment dates,
- date of issue,
- designation of the banking activity from which the claims are based (the catalog of banking activities includes the provision of Article 5 (1) and (2) of the banking law),
- mention of the due date of the claim being pursued,
- bank seal,
- signatures of persons authorized to act on behalf of the bank.
What happens after the bank enforcement order is issued?
After issuing the bank enforcement order, the bank directs him to court. If it was issued within the time limit specified in the debtor’s declaration of submission to enforcement, it does not exceed the amount contained in the debtor’s declaration, it meets the formal requirements set out in the Banking Law and the documents required by law are attached to the application, the court grants enforcement clauses . The decision on granting an enforcement clause should be issued up to 3 days from the date of submission of the application. Consideration takes place in closed session, which means that the debtor is not able to defend and present his position. After the title is enforceable, a debt collector proceeds to enforce the debt.
Possibilities of debt relief after issuing a bank enforcement order
Issuing a bank enforcement order is the last resort. However, banks issue it quite often. In this situation, the only chance for amicable repayment of the debt is to restore the repayment of the liability to the original creditor. Activities aimed at debt relief should focus mainly on removing the bailiff from the case . Thanks to this, you gain property security and avoid the stress of bailiff’s visits. According to some financiers, the fact that banks have such a dangerous tool means that ordinary citizens and companies are in a difficult situation. Debt relief in this situation often requires the assistance of a lawyer.