Default interest
If your repayment installment arrives late to our account or you fail to make a payment, you are obliged to pay default interest.
The amount of the default interest is added to your default on a daily basis until you pay off your arrears. We suggest that you call our customer service for the exact amount before paying off your arrears.
Termination of contract
According to the provisions of the Business Rules, we are obliged to terminate the loan contract with immediate effect:
- with regard to contracts concluded after 31 December 2002, if the amount of overdue debt reaches or exceeds an amount six times greater than the monthly payment, unless the debtor pays off his/her arrears by the deadline indicated in our written notice,
- with regard to contracts concluded before 1 January 2003, if the borrower is in default with an amount that exceeds 12 monthly repayments,
- if the borrower took out the Student Loan without meeting the eligibility criteria,
- in the event of a material breach of the contract.
Upon cancellation, the loan contract is terminated, and the borrower has to pay off his/her loan in one lump sum within 8 days. If the Borrower fails to pay off his/her arrears by the deadline, we transfer his/her case to the relevant authority, which will collect the debt.
Central Credit Information System (CCIS)
The national database of the CCIS stores information about clients who have breached their loan contracts, are/were in default, or have/had overdue debts. These data are monitored and used by all financial institutions, for example, for the assessment of loan applications.
The Student Loan Centre forwards to the CCIS (formerly known as BAR) information about those:
- whose overdue debt exceeds the smallest minimum wage effective at the time of falling into arrears, if this amount exceeding the minimum wage has been constantly overdue for more than 90 days,
- who provided false information or used false or falsified documents when applying for a student loan, and this is proved by official documents,
- whose data the Centre has already forwarded, but their details have changed.
The financial organisation operating the CCIS keeps the borrower’s information for one year, counted from the day when the borrower paid off the debt, or from the day the information is transferred, then deletes the data.
We inform the client 30 days before transferring the information that his/her details will be entered into the CCIS, unless they meet their payment obligations. We inform the clients in writing about their data being entered into the CCIS within 8 days of transferring the data.
You can read more about the terms of your details being transferred to the CCIS in the Information about the CCIS, which you may find in the new loan application package.
