In the event of a failure to make timely payments, you acknowledge that CAPFIN reserves the right to demand the entire outstanding amount owed under the agreement promptly. This encompasses the loan amounts, accrued arrear interest, and any other outstanding sums related to the loan. Should such a situation arise, CAPFIN is empowered to enforce the terms of the agreement through the following actions:
Notification and Debt Resolution Proposal
- CAPFIN may communicate with you in writing or via SMS, formally notifying you of the default status.
- A proposal may be presented, urging you to consider referring the agreement to a debt counsellor, alternative dispute resolution agent, consumer court, or ombud with jurisdiction. The objective is to resolve any disputes under the agreement or establish a viable plan to bring the payments up to date.
Court Intervention
- If your default persists for a minimum of 20 business days, and at least 10 business days have elapsed since CAPFIN issued the initial notice without a response or with a rejection of CAPFIN’s proposals, the institution reserves the right to seek legal recourse.
- CAPFIN may approach a court seeking an order to enforce the terms of the agreement, ensuring legal remedies are pursued to address the outstanding debt.
Remedy of Default
- Prior to CAPFIN cancelling the agreement, you retain the option to rectify the default situation at any time.
- Remedy involves making payment to CAPFIN of all overdue amounts, inclusive of CAPFIN’s authorized default charges and reasonable costs associated with enforcing the agreement. This should be done before CAPFIN officially cancels the agreement.
It is essential to recognize the seriousness of default situations and promptly engage with CAPFIN’s communications to explore resolutions. Proactive measures, such as seeking debt counseling or responding to proposed resolutions, can play a pivotal role in addressing and rectifying default scenarios. Additionally, acknowledging the option to remedy the default by settling all overdue amounts reinforces the importance of timely and responsible financial management in the context of your agreement with CAPFIN.