Definition
Recall
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A recall refers to a lenders demand for a loan to be repaid in full immediately.
These events seldom happen, but are not unheard of.
This is because loan contract are often governed by the terms stated in the agreement like an acceleration clause.
And banks usually don’t have the authority to recall a loan unless there is a serious breach of contract.
Even when events occur which presents the bank with a recall option, exercising it is often the last resort as these actions can cause public backlash. Resulting in consumer fears of dealing with the bank.
A victim of being the debtor of a recalled loan can also explore refinancing the loan to resolve the issue.
A new bank would take over the loan, and the existing bank would be paid what it demands.
for the last 36 months?
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