More and more consumers are asking us to clarify the procedures for extinguishing a loan and in particular on how to make the loan extinction count request. In this short guide you will learn the phases of the request and above all, what you have to check in order to avoid being caught up by the financial.
What is the extinction count?
First of all, suppose you have applied for a loan, but then you want to extinguish it in advance.
In this case, it is possible to exercise the right of extinction in advance of the loan, whatever the nature (personal loan or assignment of a fifth, etc.), at the institution with which the loan is being funded.
This institution, bank or finance company will issue a document (extinct count) that contains the amount of the remaining debt, or the amount that must be paid to the institution so that the loan can be closed. The document must also indicate the procedures through which the repayment and the maturity within which the debt can be paid can take place.
Pay close attention to the expiration date for the balance of the debt because even one day of delay would invalidate the document and, very frankly said, “bye bye” to the extinction procedure. You will then have to make a new request for an extinct loan .
How to make the loan extinction count request
But how can you get the release of the extinction count?
The mechanism seems to be simple: you have to ask your bank or financial institution to issue the count and you can do so at any time.
A good news? It’s that you will not have to pay anything for the service.
What does the extinction count contain for early extinction?
The information contained in this document is of fundamental importance therefore you will have to be very careful about all the items present as they can be sources of mistakes and / or omissions on the part of the credit institute.
Some of these entries can be the following:
- Number of practice
- Duration of the loan
- Installments paid as of today
- Interest discount to climb
- Refunds for any commissions
- Possible unpaid installments (unpaid)
- blue raspberry
- Residual capital
- Extinction commissions
- Bank details to make the transfer
In any case, we advise you to always check the correspondence of all the cost items and / or any rebates in the extinction count , and to compare them with the contractual clauses that you signed in the loan contract.
More and more often, unfortunately, we note several anomalies in the accounts for early extinction that result in economic damage for the unaware consumer.
Consider, for example, all the problems of the reimbursement of the insurance of the assignment of the fifth .
But not only; if you have also renegotiated a transfer of the fifth most likely the contract that you signed contains several bank anomalies for which you may have returned several thousand euro. If you want to deepen the topic follow this link:
Repayment of the assignment of the fifth
Now let’s go back to today’s main topic “The extinct count”; to facilitate the understanding of this document we have prepared an example of counting for early extinction (we have obscured sensitive data)
Fac –Simile Count for early repayment
Timing for the release of the extinction count
Excellent news for those “in a hurry” to proceed as soon as possible regarding the timing of release of the count.
According to article 17 of the Law 895 Regulation implementing Law 180/1950, the institute has the obligation to issue the extinction count no later than 10 working days , which start from the moment the request was received.
Attention to renegotiations of the loan between different financial institutions
If you are renegotiating the loan with a different loan, you must be careful and have your account counted for early repayment before the old loan is closed.
It is the practice of many institutes not to hand over the extinction count to the client by sending it directly to the incoming financial institution, who will extinguish the old loan on behalf of the client.
Even if at first sight this internal procedure of financials seems to streamline the procedure, it effectively prevents the consumer from knowing exactly what they are charging in the process of extinction (penalties, fees, accruals, insurance, etc.).
So I strongly advise you to demand delivery of the bill for early extinction before the incoming financial approves the new loan, in order to avoid losing money unduly withheld by the outgoing financial institution.