When you decide on a loan or credit, you become a debtor. The institution or person who lent you the money then becomes your creditor. What exactly does the relationship between these pages look like? Check who the creditor is and find out what his rights are.
Before you decide to sign a contract for a cash loan or payday loan, you should know exactly all its terms and who your creditor will be.
Creator – who is this?
A creditor is an entity with which the debtor is associated with a financial benefit. For example, it could be a bank that gave you a cash or mortgage loan (in which case it will be a mortgage creditor). You, as a debtor, are obliged to pay back to your creditor the money borrowed, along with interest and other charges as specified in the loan agreement in a timely manner.
Do you know that…
The money you are required to give back to the creditor is your debt. From the creditor’s perspective, the amount you owe him is his claim.
Who is the creditor?
A creditor can be any person you owe. Most often it is:
- a private person for whom certain financial obligations have been imposed on you, e.g. maintenance (this will be the maintenance creditor). A creditor who is a private person may sometimes be referred to as a personal creditor,
- bank in which you took a special-purpose, mortgage, cash loan, mortgage loan or any other financial liability,
- SKOK, in which you signed any credit or loan agreement,
- a loan company (non-bank) in which you took out a payday loan, a loan without a BIK or any other liability,
- an entrepreneur from whom you purchased products or services with a deferred payment date, with whom you have concluded a subscription contract (e.g. for telecommunications services) or you have signed an agreement on installment sale.
The Civil Code does not directly specify who the creditor is or what his rights are. However, the obligation relationship between the creditor and the debtor has been defined. It consists in the fact that the creditor may demand a specific benefit from the debtor, and the debtor is obliged to fulfill that benefit.
A creditor in enforcement proceedings
If you have never had problems with timely repayment of loans, you probably have not had to do with an execution creditor. His role usually becomes apparent only when the debtor begins to default on payment.
Read also: Payday loans without checking your credit history – how to take them?
In such a situation, the creditor may apply for a refund of the funds due to him. How will he do that?
- The creditor has the right to commence bailiff enforcement against you, i.e. proceedings forcing you to pay the debt (e.g. by seizing funds on bank accounts).
- The creditor has the right to indicate any bailiff in Poland who will deal with the enforcement procedure. The only exception is the situation in which the object of execution is real estate – a bailiff is selected from the district court competent for the location of the property (if there are several, the creditor may choose one of them).
- If the creditor does not have sufficient information about your assets, he can order a bailiff to look for it in various databases, offices and records. However, these activities are carried out for a fee – unlike the above, they are not the bailiff’s obligations towards the creditor.
- If you manage to reach an agreement with the creditor, he has the right to suspend or suspend the enforcement procedure.
The detailed rights and obligations of the creditor in enforcement proceedings are set out in the Administration by the Act of 17 June 1966 (Journal of Laws 1966 No. 24 item 151).
Obligations of the creditor towards the debtor
It is worth being aware that the creditor has not only rights but also obligations towards the debtor. The most important of them include:
- obligation to properly carry out enforcement – it is the creditor who is obliged to prepare an enforcement application, in which he will indicate what actions the bailiff should take. His duties also include indicating in the application the debtor’s assets from which enforcement is to be carried out,
- the obligation to return unduly enforced funds – if any funds are wrongly seized during the execution, the creditor must return them to the debtor
The creditor may apply for debt enforcement from your:
- movable property (e.g. car, equipment),
- real estate (e.g. flat, house, plot),
- bank accounts, claims (e.g. remuneration for work contracts),
- property rights (e.g. shares).
How to avoid problems with creditors?
Regardless of whether you decide on a loan or credit, make sure to adjust its amount to your financial capabilities. Do not incur an obligation if you are not sure that you will be able to pay it back on time.