If credit instalments are paid late, the lender may charge interest on arrears from the first day after the due date. The Consumer Credit Act stipulates that the interest on arrears may not be higher than the credit interest rate applied in the contract. Late payments are reported to the Central Office for Credit Information (ZEK), which could lead to problems with subsequent credit applications.
The CO clearly states that payment for a service is due immediately. This means that if the instalment is paid a few days after the agreed date, the bank will charge you interest on arrears unless otherwise specified. A reminder results in additional costs, which are charged at the usual market rate (up to CHF 50.- per reminder). Default interest is always charged from the first day of the shortfall.
Attention:
The default interest will be charged only at the end of the credit agreement, this is not communicated on the part of the bank! This means that you will continue to be charged interest on arrears in the event of late payment or postponement of instalments. This can amount to several CHF 100 by the end of the credit. Dunning fees and interest on arrears are good business for credit banks.
Don't let it get that far:
Therefore, we recommend you to pay two installments at once, you are thus in the lead and no default interest will be charged in case of late payment. You have, with prepayment, the possibility to skip a credit installment.
Standing Order:
Setting up a standing order is useful if you have to transfer the same amount to another account. As with all other types of transfer, a recall is of course also possible here, as long as the amount of money has not yet been credited to the recipient. We have briefly listed your advantages with a standing order below:
- You place a standing order once and don't have to worry about recurring payments.
- By setting up a standing order you save a lot of time and also money.
- You no longer have to monitor the payment dates.
- You won't make late payments or miss payment deadlines.
I can't pay my installment right now, how do I go about it?
If you are ever unable to pay an instalment, call us as soon as possible. We will look for solutions together with you.
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