Incapacitation and payday loans

Does an incapacitated person have to pay back a loan? Can companies lend money to someone like that at all? What does it look like from the legal side, and how in practice? If you have a similar problem in your family or a person who is lending to pay payday loans without paying them later, read what you can do about it.


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Otherwise depriving a natural person of legal capacity, including the use of credit offers or non-bank loans. It may be partial or complete and is broadcast only by a court decision.

Total incapacitation applies to persons over 13 years of age who, due to mental retardation, mental illness or other types of disorders, e.g. in the case of drug addiction or alcoholism, are not able to decide about their own behavior. Such people have a permanently appointed guardian who makes all the decisions for them regarding functioning in the society, using services, shopping, etc.

Partial incapacitation also applies to people with the disabilities or mental illness mentioned above, but to adults. It involves a partial limitation of legal capacity, such as incurring obligations or disposing of your right. A guardian (the so-called guardianship) is appointed for such people, whose main task is to protect the interests of the incapacitated person. Although a request for a partial limitation of a person’s legal capacity may be brought to court by a member of their family, e.g. a spouse or parent, it entails additional costs in the form of the so-called salary for a probation officer. It is taken either from the income of the incapacitated person, if he or she has it at all, or from the income of the person for whom the request has been made.

An incapacitated person on the loans and credits market

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Both partial and total incapacitation severely limits the adult’s right to incur any obligations – be it quick payday loans or bank loans. Each of these activities should be carried out under the close supervision of a guardian or guardian. In other words, if the person making the financial commitment is incapacitated by court, the contract he has signed is invalid, which does not mean that he does not have to pay the debt.

A person incapacitated as a debtor is obliged to return what he has borrowed, but without additional costs of the loan, such as: interest, commissions or contractual penalties in the event of exceeding the repayment deadline. This is because a sick person is most often not fully aware of the decisions they make, so they need the care of a guardianship (partial incapacitation) or a permanent guardian (total incapacitation) who will decide for him.

And what to do if we have a family addict who uses payday loans without paying them later? There is also a solution. The closest family member has the right to submit a court application for limitation of legal capacity and if the whole process ends with incapacitation, then there is the possibility to pay the creditor the debt itself without costs. In this case, you will need an assessment of an expert, e.g. a doctor, who will confirm that the person has a mental disorder and was not fully aware when he was carelessly taking on more debts.

Unethical operation of loan companies?

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Browsing the various online forums for loans, one can get the impression that companies offering quick cash as proof or payday loans on hand, specifically stretch incapacitated persons on such transactions.

Yes, a person who enthusiastically submits a new loan application, pleases every lender and, what is important, at first glance, it usually does not arouse suspicion. Incapacitation is not entered in the ID card or other document used by the person requesting cash. So how does the lender know that he is dealing with a woman or man with limited legal capacity, including incurring financial obligations?

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