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Stop paying the consortium It is not as rare a situation as it seems, after all, low installments are not always enough to guarantee the group's compliance.
The big problem is that administrators do not always inform their clients of the consequences of this attitude, so those who want to withdraw from the agreement feel lost.
If this is your case, don't worry, because today we will explain in detail the consequences of this withdrawal, and how to do it safely. Keep reading to find out!
What is a consortium: loan, financing or voluntary membership?
Before we answer what happens if you stop paying the consortium, it is important to understand what this type of purchase is.
This is because, sometimes, the consortium is presented as a simplified financing alternative, after all, you join a group and make payments while waiting for a draw.
This presentation may compromise the seriousness of the modality, so that many customers think that it is a voluntary membership, but this is not the case.
Just like a loan, a consortium is a type of credit with a contract signed between the parties, in which the client agrees to pay the installments and fees together with the group.
Therefore, it is not a voluntary membership, in which the customer pays if, when and as either, since the provisions of the contract must be followed.
++To consolidate or not to consolidate debts? Read the text and find out more! (consultacred.com.br).
What happens if you stop paying your consortium: find out 3 consequences
At this point, we have already clarified the information that the consortium is a type of credit with a contract signed between the client and the administrator.
This means that the client cannot simply stop paying the consortium, as it is not a voluntary contribution, but rather an agreement with rules and amounts to be paid.
Therefore, failure to pay installments and fees results in consequences, which we will discuss below:
1. Negative name
When we fail to pay the installments of a loan, this results in our name being negatively impacted, after all, the creditor is not receiving what was agreed upon in the contract.
In the case of a consortium, this also has a contract, therefore, the absence of payments may result in the holder's name being blacklisted.
This is because the installments come due, and this generates debts, which indicates the lack of compliance with the agreement and losses for the creditor company.
Therefore, before you stop paying the consortium, be aware that this will result in restrictions on your name with credit protection agencies, in addition to resulting in charges.
++Rights of the defaulting consumer: what to do when the debt is not yours? (consultacred.com.br).
2. Damage to the group
The consortium is known as group self-financing, this is because each monthly payment helps to cover the value of the prize for the winner.
Therefore, when a member decides to stop paying the consortium, this can bring losses to the entire group, after all, it will be difficult to pay the premiums without everyone's contribution.
In many cases, due to default by members, consortium groups are canceled, causing losses and inconvenience to everyone.
Therefore, before you stop paying a consortium, consider the consequences this will have on the group.
3. Loss of position in the consortium group
When we talk about a consortium, the central idea is that the prize is paid through periodic draws, and this is true.
However, it is important to know that it is not a random draw, since there are positions in the groups, so that those in higher positions have a greater chance of being drawn first.
Therefore, stopping paying the consortium is not a good idea, since late payments affect your position, increasing the chances of you being drawn last.
So, keep your payments up to date to increase your chances of being drawn, and thus reap the benefits of this modality.
What should I do if I need to stop paying the consortium?
At this point you already understand what happens if you stop paying the consortium, and as we have seen, the consequences are not simple.
Therefore, you should never stop paying the installments simply because you decide to do so, because as we have seen, these will become due and will be listed as outstanding debts, which could result in more serious restrictions.
In this case, the best solution is to seek official termination of the contract with the consortium administrator.
In general, withdrawal is provided for in the clauses, but there are rules and consequences that must be considered when making this choice.
Therefore, try to reach a fair agreement for both parties, as this way you can cancel the agreement without suffering major losses.
Read also: Financial Mindfulness: what it is and how to put it into practice (consultacred.com.br).
