What is a defaulter?

The meaning of delinquent refers to the natural or legal person who has breached a obligation upon expiration. In the Spanish banking sector, it is applied from the third unpaid receipt.

To be legally recognized as delinquent, a legal document must be in the possession of both parties that recognizes that the debtor delinquent is obliged to make such payments, such as credits, telephone services, mortgage deeds, credit card contracts or unpaid checks. In the absence of this document, the debt would not legally exist and no action could be taken against the debtor.

What is a delinquent debtor?

Delinquent clients are those who are late in meeting a payment obligation and show little interest in making the disbursement.

The condition of defaulter is acquired once the aforementioned obligation is not met at maturity by a organization or person. In order for it to be considered as such, there must be a contractual document where the conditions and dates of payment and collection between both appear reflected. This means, therefore, that any person who does not meet his obligations or who does not pay a couple of bills cannot be classified as delinquent.

What if you are on the delinquent list?

Entering a list of defaulters is very easy. With not paying a bill 100 euros will be enough, but to get out of it there is a more complex process.

Being part of a database of defaulters is detrimental to the debtor, especially if he wants to get finance or hire a service. They are very useful tools used by different companies when analyzing whether or not to start a business relationship; by banks when approving the granting of a loan or cards and by telephone companies to sign a new contract with a client.

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