A loan seeker must demonstrate to the bank that he is able to pay his monthly installments on time. Income serves as proof. Nevertheless, the banks check how reliable the applicant is. As a rule, Credit Bureau information is obtained. If there are negative entries, it depends on how serious they are. An oath of disclosure is one of the entries that destroy all options for a loan.
Credit despite oath of disclosure
But what is an oath of revelation? The term is also known as affidavit. If a debtor does not meet his payment obligations, the dunning procedure is first initiated by the competent district court. Who will issue an order for payment and two weeks later an order for enforcement. If the debtor still does not pay, a bailiff is commissioned to collect the debt. The customer visits the debtor’s apartment and checks whether there are any usable objects.
If this is not the case, he sends this to the creditor in a protocol. The debtor can now demand an oath of disclosure from the debtor. For this purpose, the bailiff is again commissioned to record the debtor’s data. The debtor is forced to put his economic circumstances in it. This affects income, savings, whether there is a car, whether there are valuables and much more. This information must be provided truthfully. The record of this affidavit will be sent to the creditor.
An oath of disclosure is valid for three years and is transmitted to Credit Bureau. In these three years, the debtor is not required to take any further oath of disclosure. Every creditor now knows that there is nothing to get from the debtor. Under these circumstances, no bank will grant a loan despite the oath of disclosure.
Banks cancel the current account
For those affected, this means that they not only no longer get a loan, but also no more cell phone contracts, no deliveries on account and much more. In some cases, the banks even cancel the current account, which has fatal consequences for those affected. You will then no longer even be able to transfer the monthly payment obligations for rent or electricity, but will have to pay the money in cash at the counter, which causes high fees.
Some people now want a loan to pay off everything. But it is inconceivable that a bank grants a loan despite an oath of disclosure. Credit Bureau clearly shows that there have been payment difficulties in the past, otherwise no oath of disclosure would be required. The debtors must be clear in advance of what can happen if they are over-indebted. It is better to refrain from desires than to get into such a situation.