Are the consequences serious when a collection lawyer letter comes?

Legal subjectivity:

If we have a loan, sometimes it will be overdue. For overdue loans, some loan companies will send you an overdue lawyer's letter, then Are the consequences serious if an overdue lawyer's letter arrives? Generally speaking, the consequences are not particularly serious.

1. Are the consequences serious if an overdue lawyer's letter arrives?

If your credit card is overdue and you receive a lawyer's letter, the situation will be quite serious. If the lawyer's letter is verified to be true, it means that the bank is already preparing for prosecution. But as long as the user settles the debt, the bank will no longer intend to sue. In fact, sending lawyer's letters to overdue users is just to warn users and let them take the initiative to repay. Most of the time, there is no real intention to sue the user.

If you still do not repay the loan after receiving the lawyer's letter, then the bank may actually sue the user in court.

Before the dispute is initiated into litigation or arbitration, a lawyer's letter issued by a lawyer can extend the statute of limitations. Disputes arising in guarantee business are very troublesome, and the recovery of loans involves many aspects, so it is very necessary to extend the statute of limitations in a timely manner. Issuing a lawyer's letter through a lawyer can clarify the facts and stop illegal infringements. Lawyer's letters have the function of clarifying facts and deterring illegal behavior, which are beyond the reach of ordinary business letters and private letters.

In practice, it often happens that the parties are preparing to sue but there is insufficient evidence. Once the lawsuit is hastily filed, relevant evidence is often not obtained from the other party. In this case, sometimes it is possible to Solve the problem by issuing a lawyer's letter. This method is like a confirmation letter from an accounting firm. Through this method, the other party's evidence and attitude and views on the disputed facts are obtained, and the reply letter from the other party is used as written evidence.

The lawyer's letter is entrusted by the party and reflects the will of the party. Before the dispute is filed for litigation and arbitration, there is evidence to prove that the lawyer's letter is issued, which can interrupt the statute of limitations. .

2. What are the functions of a lawyer’s letter

1. A solemn letter to prompt performance of the contract. In disputes such as arrears of payment where the facts are clear, if the other party's behavior may or has infringed upon the interests of the party concerned, a lawyer can issue a lawyer's letter to remind the other party of the inappropriate behavior, urge the other party to fulfill its obligation to pay the payment, and give a warning if the payment is not made. , will need to bear legal sanctions. In such cases, a lawyer's letter can shorten the resolution time of the dispute and save the parties' litigation costs and time.

2. Interrupt the statute of limitations. The general statute of limitations for debt disputes is 2 years. Within 2 years after the debt matures, if there is no evidence to prove that the creditor has demanded payment from the debtor, and the creditor sues after 2 years, the court will refuse to file the lawsuit on the grounds that "the statute of limitations has expired." Support the creditor's claim for payment from the debtor. Issuing a lawyer's letter through a lawyer can extend the statute of limitations. This is the important legal significance of issuing a lawyer's letter.

3. It can clarify facts and stop illegal infringements. Lawyer's letters have the function of clarifying facts and deterring illegal acts, which are beyond the reach of ordinary business letters and private letters. In cases of unfair competition and intellectual property infringement, victims often entrust lawyers to issue this type of letters.

4. Obligation to inform. There are many aspects in this regard, such as notification ratifying the agency behavior of an agent without authority, the exercise of the right of unrest defense, the exercise of the right of concurrent performance defense, the exercise of the right of first-suit defense, notification of the invalidity of a contract, the exercise of the right of rescission, etc., all parties involved Any notification rights you have can be completed through a lawyer’s letter

5. Notice to terminate the contract. This is a right granted to the parties by the contract law, based on the provisions of Articles 93, 94 and 96 of the "Contract Law". Inform the other party that the contract will be terminated upon the arrival of the notice. If the other party has objections, it may request the people's court or arbitration institution to confirm the validity of the termination of the contract.

6. Know the interests and promote reconciliation. This is also one of the functions of a lawyer’s letter. It is for this reason that lawyer letters are becoming more and more popular.

This type of lawyer's letter often prompts the two parties to reach an out-of-court mediation agreement by notifying the other party to come in person, send a letter, or call for negotiation within a specified time limit.

However, it should be noted that if the party needs to entrust a lawyer to issue a "Lawyer's Letter", it must provide comprehensive, complete and specific facts so that the lawyer can accurately judge what the party wants to achieve by sending the lawyer's letter. Purpose, so as to draft and issue "Attorney's Letters" with different contents according to the different needs of the parties. Legal objectivity:

Article 676 of the Civil Code stipulates that if the borrower fails to repay the loan within the agreed time limit, he shall pay overdue interest in accordance with the agreement or relevant national regulations.