A reminder is not a legally binding court notice. You don't have to sign. However, your rejection of the reminder letter shows that you don't want to repay too much. In this case, the other party may take other measures, such as directly taking you to court for enforcement.
What will happen if you don't apply for a dunning letter?
If the lender still fails to handle the dunning letter after receiving it, after a certain period of time, the bank will sue the lender to the court and ask the lender to repay the arrears and bear the liability for breach of contract.
Article 32 The general principle of loan repayment: The borrower shall repay the loan principal and interest in full and on time in accordance with the loan contract. The lender shall issue a notice of repayment of principal and interest to the borrower one week before the short-term loan expires and one month before the medium-and long-term loan expires; The borrower shall prepare funds in time and repay the principal and interest on time. The lender shall promptly issue a notice of overdue loan collection, and do a good job of overdue loan principal and interest collection. If the lender fails to repay the loan within the time limit stipulated in the loan contract, it shall pay a penalty interest according to the provisions; Can not return or repay the principal and interest, should urge the return or bring a lawsuit according to law. If the borrower repays the loan in advance, it shall negotiate with the lender.
2. What's the impact of receiving the reminder letter on the future?
The reminder is for overdue people, so there is no doubt that when you receive this notice, it means that your personal credit has been damaged by overdue repayment. However, you don't have to tread on thin ice, and you don't have to be too anxious, because short-term overdue repayment and a small amount of repayment will not cause obstacles to applying for loans or credit cards in the future. Therefore, after receiving the dunning letter, it is your primary task to repay immediately.
Dunning letters are usually sent when telephone collection fails. The move is aimed at creating a tense atmosphere and urging borrowers to repay immediately. This is a means for banks to revitalize non-performing loans. Of course, this does not rule out that it can be used as strong evidence when the bank files a lawsuit in court as a last resort. However, if the borrower's breach of contract is not intentional, but is indeed caused by economic difficulties, the bank usually will not file a lawsuit. If repayment is really difficult, you can apply for deferred repayment or negotiate repayment. The so-called negotiated repayment means that only a part of the funds can be repaid. Therefore, it is best to reply after receiving the reminder to avoid unnecessary disputes.
A reminder letter is neither an indictment nor a judgment, and there will be no serious consequences. But it has a strong deterrent effect and is a serious warning.