What to do with a loan if MFIs are excluded from the registry?

The activities of all financial market participants are controlled by the Central Bank of the Russian Federation. If during an audit certain deficiencies in the work of a financial organization are identified, the supervisory authority has the right to withdraw the license to provide services, without which the institution’s activities are not legal.

Simply put, the loss of a license entails closing a financial institution. As a rule, such checks are often carried out in banks .

What to do with a loan if MFIs are excluded from the registry?

Companies that provide microloans to the population under certain conditions could legally carry out this activity without a license. In order to legally provide lending services, it was enough to join the SRO and enter the necessary information about the company in the register.

Today, in such financial institutions, an obligatory check is also conducted by authorized representatives of the Central Bank. If certain deficiencies are identified in the institution’s activity or the credit conditions contain items that do not comply with the laws of the Russian Federation, the company is excluded from the register.

According to the established law, a financial institution does not have the right to issue loans to individuals and legal entities if it is excluded from the registry. That is, such an audit result obliges the owner of a financial institution to terminate the provided activity.

However, even after the closure of the organization, many citizens who have debt obligations are interested in the question of how to pay off the debt further (there is nothing to pay the loan, what to do?) And whether it is worth paying to an institution that has lost the legal right to provide such type of service?

What to do with a loan if MFIs are excluded from the registry?

Rights and Obligations of the Lender

First of all, the company’s owner for microloans is obliged to close the institution and notify about termination activities of all customers.

If you wish to continue working, you will need to figure out the reason for delisting and try to eliminate the existing shortcomings in order to get legal permission for microfinancing of private and legal entities again.

In order for the Central Bank to re-register the company providing loans to the population, it will be necessary to comply with the following items provided for by the RF legislative system:

  • to prepare documentation, taking all formalities into account ;
  • to fulfill the requirements on the level of reserve (attract additional funds or merge with another company to increase the limit);
  • to draw up a new credit policy in accordance with the legal requirements of the Central Bank of the Russian Federation.

If the company decides to close completely, not wanting to continue its activities, it is possible to recover debts from borrowers on a legal basis, but at the same time, the company itself must fulfill its obligations specified in contract.

What to do with a loan if MFIs are excluded from the registry?

The changes that have occurred in the activities of a financial institution must be reported to each client. If the company does not wish to collect debts from borrowers, it has the right to transfer the loan portfolio to other financial market participants or collectors.

Investors have the right to demand from the financial institution personal funds invested earlier. The company is obliged to pay all debts to customers as soon as possible.

Rights and obligations of the borrower

Even if the microcredit organization has lost its legal rights to provide business, borrowers are obliged to pay debts, in accordance with the contract signed earlier. Experts recommend collecting all checks, and after paying the full amount of the debt, require an official document from the company confirming that the loan was closed.

Payments will have to be made with interest recorded in the documentation, within the stipulated time frame. As a rule, the details for paying the debt do not change. In case of certain changes, the creditor company is obliged to notify clients in writing.

In order to avoid troubles and disputes in the future, it is better to keep all documents and payment receipts, which will allow in case of unforeseen proceedings with the borrower, to provide real evidence of the company's debt repayment.

If the closing institution transfers the loan portfolio to another organization or collectors, representatives are required to inform each client about the changes in writing. Experts do not recommend paying to third parties without a written notice from the creditor company. This will avoid unnecessary problems in the future.

What to do with a loan if MFIs are excluded from the registry?

Investor Rights

Citizens who have invested their own money in a company may not worry about the consequences of closing a financial institution.

According to the legislative system, the rights of investors are defended by the Central Bank.Representatives of this institution control the payment of investments, so all the invested amounts will be returned by the company as soon as possible.

Many financial institutions cover all deposits. If a closed institution cannot return the full amount to investors, these obligations will be fulfilled by the company-insurer . If for any reason the investor does not receive the invested money, he has every right to go to court.

As a rule, this is a win-win business for a person who has invested his own money in a financial institution that has ceased operations due to expulsion from the registry.

Experts advise all investors who invest personal savings to regularly monitor the company's activities in order to always be confident in the safety of funds.

It is not necessary to make deposits in obscure financial institutions that hide certain information about their activities from customers or that enter into contracts that do not contain legitimate items (the best ways are to invest the hryvnia in a profitable way). The correct approach, with the preliminary verification of the company, will reduce the risk of loss of personal funds in the event of unforeseen circumstances.

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