Installment loans have become very popular lately. They are provided not only by banks, but also by non-bank institutions. These are companies for which the main type of business is loans. There are more and more such companies. Their offer also undergoes certain modifications over time. These companies want to adapt their offer to current market needs. The main axis of their activities are primarily the so-called “online payday loan.” Sometimes there are also options for granting free loans, i.e. without additional costs (we repay the capital itself). Recently, so-called loans for those in debt. They are addressed to people who have several different obligations. By granting such a loan, all other liabilities are consolidated, and therefore only one installment is due.
Necessary formalities related to the loan / credit
As a rule, companies that offer this type of loan reduce formalities to a minimum. Therefore, documents such as an income certificate or borrower’s statements are not needed. However, this is not common. Even companies that provide loans online require a borrower’s statement of income earned by entering the appropriate amount in the form.
At this point, it should be noted that there is a significant difference between the income certificate and the statement that is made by the borrower. The first is because it is issued directly by the employer. A statement can be made if it is made individually by the borrower. Such a statement usually mentions an instruction regarding criminal liability. The condition for the borrower to be subject to criminal liability is the submission of a false statement. Such a declaration should be made in order to obtain a loan in installments or payday loans. According to the wording of art. 297 parish 1 of the Penal Code, “who, in order to obtain for themselves or someone else, from a bank or organizational unit conducting similar economic activity pursuant to the Act or from a body or institutions with public funds – credit, cash loan, surety, guarantee, letter of credit, subsidies, subsidies , confirmation by the bank of an obligation arising from a surety or guarantee or similar monetary benefit for a specific economic purpose, payment instrument or public contract, submits a counterfeit, altered, certifying untruth or unreliable document or unreliable written statement regarding circumstances of material significance for obtaining such support financial instrument, payment instrument or order, shall be punishable by a term of imprisonment from 3 months to 5 years. ” The legislator also provided for criminal sanctions for a person who presents a false income certificate when applying for a loan. In this case, one can also speak of the existence of conditions conditioning criminal liability under Art. 297 parish 1 of the Penal Code In both cases described above, the condition that determines the emergence of criminal liability on the part of the borrower is its prior instruction. Of course, there is also a question to be distinguished, namely that it is something else to falsify a document, and it is something else to give false information in the scope related to the amount of remuneration received for work. In the first case, this instruction is not needed at all, because ex lege it results from the binding rules of social coexistence that documents cannot be falsified.
Other types of liability
Considering the above, it should be emphasized that in addition to criminal liability, there is also civil liability. However, civil liability can arise in the event of completely different factual circumstances. Civil liability will occur if, for example, the borrower fails to pay his monetary liability. In this case, the creditor (bank, non-banking institution, or assignee), submits a claim for payment against the debtor (borrower). After the order for payment has become final, the creditor may apply to the Court for the enforcement of the order for payment. In that case, the order for payment accompanied by a decision granting an enforcement clause will constitute an enforceable title. Only after obtaining an enforceable title can a creditor submit an appropriate application to initiate enforcement proceedings directly to the bailiff competent (usually) because of the place of residence of the debtor.
Goods protected by law
To sum up, the provision of art. 297 of the Penal Code, first and foremost, protects goods such as honesty in trading. The protection specified by the legislator is aimed at reliable and transparent functioning of various financial instruments, including loans.