What does loan acceleration mean?

Loan acceleration is one of the most frequently recurring topics addressed by the customer service of the Positive credit register. What does it mean? Can information about loan acceleration be removed from the register? Why does the acceleration information remain on my credit even if I pay my debt collection invoice on time?

Loan acceleration (also calling in a loan) means that the lender requires the advance repayment of the entire loan or future instalments of it. Please note that many lenders may talk about terminating a loan when they actually mean acceleration. In this context, both terms refer to a situation in which the borrower fails to make their contractual payments as agreed on time despite being sent reminders. For this reason, the lender accelerates the loan contract. For example, the website of the Finnish Competition and Consumer Authority states the following about acceleration:

– If you do not make the repayments of your loan or otherwise essentially breach the contract, the lender may demand that you pay early an instalment that is not yet due, or pay back the whole remaining amount of the loan.

The Finnish Competition and Consumer Authority also notes that loan acceleration and other penalties may only be imposed if they are stated in the loan contract. A further prerequisite is that your payment is at least one month overdue.

• Read more about the terms and conditions for loan acceleration on the Finnish Competition and Consumer Authority’s website: Calling in a loan

What information about acceleration is reported to the register and how can I find out about it?

The acceleration of a loan due to late payment is reported to the Positive credit register. Under the law, information about the acceleration of a loan and the acceleration date are only reported to the register when the lender calls in the loan in full due to delayed payment. In other words, accelerations for any reason other than delayed payment are not reported.

The lender who owns the loan contract is always responsible for the information reported to the Positive credit register. For example, if you have an accelerated loan in the register and you believe the information about it is inaccurate or you would like further information about it, you should contact the relevant lender. You can find out which lender is responsible for the loan using the Positive credit register e-service:

• Log in to the e-service
• Select “View your credit”
• The front page shows the lump-sum loans, running-account loans and leasing credit granted to you.
• It shows the lender’s name (marketing name), the purpose of use of the loan, and the loan balance.
• To access details about a loan and the lender’s official name, open the loan information by clicking the icon on the right and select “Open all details”.

It is a good idea to check the official name of the lender in our e-service if you cannot find out who is responsible for your loan details in the register. Sometimes the lender’s official name may differ from their marketing name. For example, a lender may advertise under the name “Lomalaina.fi”, while their official name may be “Suomen Lainapankki Oy Ab”.

My accelerated loan is in debt collection. Where can I find information about it?

It is common for lenders to sell accelerated loans to debt collectors. If they do this, they transfer the entire loan contract to a debt collection agency, so the debt collection agency becomes responsible for submitting a notification to the Positive credit register. If the e-service shows a debt collection agency as the lender’s official name, you should contact them if you have any questions about the loan information.

Please note that many lenders organise the recovery of accelerated loans through a debt collection partner without selling the loan. This means that the lender that granted the loan purchases a debt collection service from a debt collection agency. In such a case, the debt collection agency sends invoices and payment reminders and monitors payments on behalf of the lender. Such an arrangement is often referred to as assigned debt collection. In the case of assigned debt collection, the original lender remains responsible for the data reported to the Positive credit register.

Follow the steps above to access the e-service and check whom to contact regarding your loan when it has entered debt collection.

Why is the acceleration information not removed from my loan?

Information about loan acceleration is often confused with delayed payment. The delayed amount reported to the Positive credit register must be removed after you have paid it. Information on loan acceleration is only removed if it is established that the loan was not accelerated. This could be the case, for example, if the lender had originally reported the loan as accelerated in error.

According to lenders, acceleration is a procedure that is not generally cancelled. Therefore, if your loan is accelerated due to delayed payments, information about the acceleration will not be removed from the Positive credit register, even if you agree on a new payment plan with the lender.

Contact your lender to discuss the acceleration of your loan. You are also advised to check your loan contract, which should mention the acceleration of the loan contract and the consequences of it. If you feel that your loan has been accelerated on invalid grounds, you can contact the Consumer Ombudsman.