When can a loan company terminate the contract?

Termination of the loan agreement concluded is a last resort for the contracting company, and a serious problem for the client, when the debtor does not pay the debt, does not answer the phone or a slight call for amicable repayment, the company may terminate the concluded contract. It is good to know in what situations this can happen and what the consequences may be for the borrower.

What could be the reason for terminating the loan agreement?


There are numerous legal and contractual grounds on the basis of which the loan company may terminate the loan agreement due to our fault, several of which are:

  • failure to meet the conditions on the basis of which the loan was granted (numerous delays in repayment, not responding to recovery requests or other contractual provisions)
  • earmarking funds from an earmarked loan for purposes other than those specified in the contract (this provision is rarely used and applies mainly to banks, but it still exists and should be noted if we make a commitment, e.g. to renovate a house, and it is a loan only for for this purpose, we may be asked for invoices, billing etc.)
  • loss of borrower’s creditworthiness, resulting in a reduction in the amount of the loan granted or termination of the contract (this provision often applies to credit lines in loan companies, e.g. Dollarloan)
  • deliberate misleading the creditor by providing false information about his creditworthiness, legal or material situation

Contract terminated, what does this mean for the borrower?

borrow money

Termination of the loan agreement is a demand for the loan to be repaid by the company in full before the loan repayment schedule or loan agreement. Immediate maturity is due to the above-mentioned reasons. The lender must meet the condition of termination of the loan and set a deadline for repayment, by statute, this period may not be less than 30 days (notice period). Importantly, the termination of the loan agreement must be in writing, it cannot be oral or e-mail.

Of course, the termination of the loan agreement means the obligation to return the full amount along with interest to the lender’s account, in connection with the termination of the contract and further cooperation with the client, he is obliged to return the money within 6 weeks from the date of receipt of the document or within the prescribed period by the lender (but not less than 30 days). In addition, for the borrower, another problem may be entering into the database of debtors or supplementing information about the delay in BIK, which may make it difficult to borrow any subsequent loan until the debt is repaid.

How to avoid termination of the contract

How to avoid termination of the contract

What is a conditional termination?

Conditional termination of the loan agreement is the last chance for the debtor, this type of termination is characterized by setting a deadline for repayment by the debtor of his arrears, for example with such notice the following provision appears:

“If you repay the arrears within 14 days, this termination should be considered invalid”

A letter with such a record should be treated as the final request for payment, in particular all delays arising in installments that are designated on this type of call.

In this way, often people with arrears decide to repay it and continue the loan agreement, so you can avoid many unnecessary problems such as a payment order or bailiff in the event of the order being carried out by the lender.

Termination of the loan agreement – can it be withdrawn?

loan agreement

Loan companies terminate credit agreements as a last resort, but sometimes it is possible even after termination of the renegotiation agreement with a given lender, in the case of the conditional termination described above it is clear, however, if we have received the normal termination of the contract, we should pay the last installment arrears as soon as possible and contact the lender conclusion of an agreement or distribution in installments (settlement)

When can the customer terminate the loan agreement?


Each customer has the option of terminating the loan agreement in several ways, each of which is defined in the contract we have concluded, at the same time the legal only way to terminate the contract is to terminate it within 14 days of its conclusion, Polish law guarantees the possibility of resigning from such obligation and obliges us to refund the amount within 30 days of sending the notice if we are within the statutory time.

The second way to terminate the contract is a gross breach by the lender, unfortunately this method can be interpreted differently and very often such cases go straight to court because there is a dispute between the lender and the client, a glaring breach may be, for example, adding costs that are not defined in the signed agreement.

There is a third way, but it applies only to installment loans, in accordance with art. 75a paragraph 2 of the Banking Law, when the loan is granted for a period longer than a year, the borrower may terminate such a contract with a 3-month notice period . This means that any liability entered into for more than a year (e.g. installment loan) can be terminated with a 3-month notice period, after which we must return the full amount of the loan to the lender’s account.

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