Tuesday, September 22, 2020
Credit

Consumer credit: What protections?

The decision to make such a serious commitment, regardless of whether it is a mortgage, consumer loan or even a holiday loan, should be approached with caution and calmness. Spontaneity will be the worst advisor in this case.

You should get to the case with a lot of time, calculate everything coldly, and calculate it exactly. There is also no point in overly suggesting advertising slogans, according to which each offer looks very attractive. Below are some comments that should be taken under the microscope in order to safely take a consumer loan.

When taking out consumer credit, a borrower has rights defined in the Consumer Code. These measures are intended to protect the consumer from unfair commercial practices.

The right to transparency

A consumer credit is a loan which does not exceed $ 75,000 and which does not report to the purchase of real estate. To discourage questionable business practices, the legislator has taken steps to enhance transparency for borrowers. Thus, credit institutions have the obligation to provide the necessary information visibly to consumers. The right to information is therefore fundamental since it makes it possible to inform the requester via clear, precise and correct information.

This therefore explains why we always see, on advertising spaces, such as the APR or “a credit commits you and must be reimbursed.” Check your repayment capacity before you commit “. The borrower must therefore have access to all of the information before its final signature, to protect it from a certain opacity which may have bad repercussions for the future.

The withdrawal of his request

When signing a consumer credit, a borrower has a mandatory period to start thinking. Therefore, he has 14 days after acceptance of the offer to withdraw from the credit institution. The period can be reduced to 8 days depending on the urgency of the request, and especially after the client has made the request before signing the loan offer.

The possibility of early repayment

A borrower can change his schedule at any time at his request to the lender. Indeed, it is possible to repay part or all of its credit without any authorization from the lender.

Inserted into the Consumer Code, this right turns out to be more complex to implement. To suspend the monthly repayment of his consumer credit, a borrower must appeal to the District Court to justify a negative development in his personal situation. He must prove that he cannot reimburse the loan for a valid reason such as job loss, over-indebtedness or deterioration of health. After approval, only the credit can be suspended there.

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