Default

In finance, the term “default” refers to a failure to repay a debt in keeping with corresponding loan or credit agreements.

In Switzerland, when a borrower defaults on a loan the lender has the right to open a debt collection case at the debt collection office.

The default is recorded in the borrower's municipal debt collection register and in their credit history at relevant credit bureaus. This can have serious implications on their creditworthiness and therefore on their future ability to obtain loans or lines of credit.

More on this topic:
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Swiss mortgage comparison

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