A bank can grant to a client company a bank account managed in a current account, the so-called ” credit ” . For the management of the loan, the payment of expenses and commissions is provided, as well as the payment of the contractually agreed interest. The credit line is generally revocable at the discretion of the bank and, sometimes, the withdrawal of the credit limits the very life of the client company.
The customer can use the credit line at any time and, as mentioned, the use coincides with the agreed costs that, as a rule, are debited cyclically on the current account itself and, therefore, the debit balance is composed of the capital taken into loan but also from the costs incurred for use. When the bank revokes the credit, the customer is asked to reset the debit balance, then to pay an amount that has been formed over time and that, in the case of long-term accounts, could be close to total cumulative expenses and interests.
Once the credit has been withdrawn, with a subsequent request for return, the debtor is in front of three roads:
1) to honor the request immediately, in full and in full;
2) agree a repayment plan;
3) agree on a balance and write-off.
Agree on a balance and write-off
The decision to request a transaction, with the related settlement and settlement extinction , determines a worsening of the bank / customer relations with the relative tightening of the former and the start of procedures that often involve the legal area; the bank will, of course, try to obtain the payment of the entire debt by activating all the guarantees that the customer granted when stipulating the loan agreement.
The state of information asymmetry in favor of the bank and the probable financial difficulties in addition, often, to those emotional due to the moment of stress certainly do not play in favor of the client which could be induced to take steps against his own interests.
For all the above it is essential to rely on experts in banking law who can, first of all, check for any anomalies contained in the custody account, think for example of compound interest , illegitimate overdraft fees or usury , then make a two diligence on the debtor and, consequently, open a negotiating table with the aim of obtaining the best possible agreement. The advantage of obtaining a debt settlement transaction is evident, but only if adequately assisted can it be achieved with the least possible impact on its activities and with the widest and most complete release.