You have a loan at FE Credit but it is now past due and FE calls and threatens to enforce it. Are you worried about not knowing? How long does it take to owe FE? and go to jail? To answer this question, let's find out together with Banktop in the article below.
What is FE Credit?
FE Credit means that the borrower owes an unsecured loan that needs to be paid to SMBC Vietnam Prosperity Bank Finance Company Limited (FE Credit). For all loans, the borrower is obliged to repay the principal and interest according to the specified term.
If you do not pay on time, it means you owe FE Credit. In order to avoid being coerced, the borrower should properly fulfill his payment obligations on time. Here are some cases where enforcement will be:
- The borrower intentionally failed to pay the loan on time.
- When the payment was due, FE called to remind but the borrower intentionally did not pick up or turn off the phone.
- Borrowers do not strictly comply with the terms stated in the contract and have acts of debt evasion.
How long does FE debt take to be enforced?
FE Credit has easy loan conditions, so most customers can borrow money. Because of that, many people do not have enough financial capacity but still borrow money, leading to unable to pay loans on time.
When the borrower does not pay the loan on time, FE Credit will call to remind. If the borrower still does not pay, FE Credit will come to the house to enforce.
Depending on the loan, FE Credit will offer different enforcement time. Usually, after 30 days from the date of late payment, FE Credit will take enforcement measures. If the customer is not present at the address or flees, FE Credit will use other professional methods to collect debt.
Will FE's overdue debt be sent to jail?
In addition to the question of how long the FE debt will be subject to enforcement, many people are still worried about whether FE's overdue debt will be arrested or not. According to regulation 174 of the Penal Code on appropriation of property, it is written as follows:
Those who intentionally appropriate other people's property from 2 million to 50 million or less than 2 million in the following form shall be sentenced to non-custodial prison from 3 years. Or imprisonment from 6 months to 3 years.
- Has been sanctioned for fraudulently appropriating property but repeats the violation.
- Have been sentenced according to the provisions of articles 168, 169, 170, 171, 172, 173, 175 and 290 of this code.
- Affect social security.
- Property is the means of livelihood of the victim or the victim's family.”
So how much do you owe FE Credit to be sued? There will be 2 cases as follows: In case the borrower is really in financial difficulty, unable to pay, he will not be sued. In other cases, borrowers deliberately flare up debts, run away for loans of VND 2,000,000 or more, they will be sued by FE.
How long does it take to get bad debt from FE?
Depending on the delay in payment, FE debt will be divided into 5 groups of bad debts. Know the regulations of each bad debt group to avoid possible undesirable consequences.
FE bad debt group 1: Standard loan balance
Group 1 bad debts, also known as standard outstanding loans, are debts that borrowers are able to pay both principal and interest on time, or are overdue for less than 10 days.
FE bad debt group 2: Outstanding debt to pay attention to
Group 2 bad debts are debts with a late payment period from 10 to less than 30 days, or debts that have been rescheduled for the first time.
FE bad debt group 3: Substandard outstanding loans
Group 3 bad debts are debts that are overdue from 30 days to less than 90 days and debts that are rescheduled for the first time that are overdue for less than 30 days. Or loans that are exempt from interest reduction due to the borrower's inability to pay.
FE bad debt group 4: Doubtful outstanding balance
Group 3 bad debts are debts that are overdue from 90 days to less than 180 days, debts that are restructured for the first time but are overdue from 30 to less than 90 days.
FE bad debt group 5: Outstanding debt at risk of capital loss
FE group 5 bad debts include debts that are overdue for 180 days or more and those that are restructured for the first time but are overdue for more than 90 days, and those that are restructured for the second and third time.
How is the bad debt collection process of FE finance company?
FE Credit's bad debt collection process takes place as follows:
- Step 1: When the payment term is near, the staff of FE Credit will text or call to remind customers to pay the debt on time.
- Step 2: If the payment is overdue, but the customer has not paid the debt, FE staff will call their relatives and give a warning.
- Step 3: Calling relatives but borrowers are showing signs of debt evasion or disconnection, FE will switch to other debt collection methods.
- Step 4: After all debt collection measures have been taken but still cannot recover the debt, FE will transfer the file to the debt collector.
- Step 5: If the debt collection agency still cannot collect the debt, the official customer's file will be taken to court for lawsuits.
FE loan settlement instructions
How to borrow money to avoid bad debt FE Credit?
FE Credit bad debt in the long run will have serious consequences, so to avoid getting bad debt FE Credit, you need to note a few things as follows:
- Read and double-check the terms of the contract and pay attention to the payment deadlines.
- Only borrow money in your ability to repay, calculate and carefully consider your personal income compared to the principal and interest payable.
- Actively set a reminder to pay the loan 2-3 days before it's due, to avoid forgetting or confusion.
- Track payments regularly throughout the life of the contract, to see if the payments have been made successfully.
- Good financial management, responsible for loans, to avoid overdue payments and falling into bad debt.
So above, Banktop has answered your questions How long does it take to owe FE?. Hopefully, the information shared above will help you avoid bad debts owed to FE Credit to avoid falling into bad debt, worse, you may be sued in a very troublesome court and go to jail.
The article was edited by: Banktop.vn