Consumer credit: assigned credit

The appropriation allocated is related to the purchase of property (car, furniture, appliances...) or the provision of a service (work at home, travel...).

It is this type of credit that is granted when a seller offers to pay in several times with fees.

The credit allocated is a consumer loan which is not freely available for use.

This loan is for the purchase of the property or service for which it was granted and you cannot use it to do anything else.

The lender may ask you to provide proof of use of the funds.

As with all consumer loans, the amount of the loan must be between €200 and €75,000.

The duration of the allocated credit must be at least more than 3 monthsbut there's no maximum duration fixed by law.

The interest rate the amount of the appropriation allocated and the amount of the fees shall be fixed freely by the lender (bank or credit institution), but taking into account the wear rate.

The wear rate is the interest rate legally maximum applicable in France.

The bank or financial institution must provide you with the annual percentage rate of charge of the loan.

This rate takes into account all the costs incurred by the loan (bank interest, insurance costs, application fees, broker's commission, etc.).

The annual effective rate global of the loan shall not exceed wear rate.

You can apply to the lender of your choice.

Your bank can issue this type of credit, but you can also contact a credit financial institution.

Brokers can help you compare the best deals, with a commission on the money borrowed.

The lender may require you to take out insurance from their institution before granting you the credit, even if the law does not require it.

In the event of a payment incident, this insurance will reimburse you.

Once you sign the offer, the contract is not yet finalized.

For the contract to be finalized, the lender must confirm his decision to grant you the loan within 7 calendar daysand you waive your right of withdrawal

The lender has the right to refuse you the credit, for example if he has doubts about your ability to repay (too low income, too high expenses, precarious employment etc.).

Each bank is free to set its own credit terms.

The credit union can send you a rejection letter, but sometimes you don't get a response.

If you have not received a response within 7 calendar days of your request, your file has been refused.

If the bank sends you the answer after 7 calendar days, you have the choice between accepting the credit or forgoing to use it.

If the bank pays you the amount of the loan without sending you a reply, it means that your application has been accepted.

If the bank refuses, the credit agreement affected is not implemented.

You have a withdrawal period of 14 calendar days after the loan offer is signed to renege on your commitment.

The seller must not deliver the goods or start the service before the end of this withdrawal period.

However, if you request it in writing, the seller can make the delivery of the goods or the supply of services immediately or within a period of time less than 14 calendar days. We're talking about shortened period.

When the seller makes the delivery of the goods or the provision of services your right of withdrawal expires on the date of delivery or supply of the service, within a shorter period.

When the seller delivers the goods or the service immediately, you must exercise your right of withdrawal within a period of 3 calendar days.

You can use the form provided with your credit agreement or mail template:

Send this email registered letter with acknowledgement of receipt to the lending institution.

TO [name and address of the lender] .

I, the undersigned, [your handwritten surname and surname] ,

declares that it has forfeited the offer of credit by [hand-written borrowed amount] euros that i accepted on [date of signature of the hand-written loan] .

This appropriation was intended to cover the acquisition of [Property purchased or service provided (written notice in hand)] at [handwritten seller's name and address] .

[Borrower's date and signature] .

If you withdraw within 14 days of accepting the loan offer, credit agreement affected and the cancelation of the contract for the sale or provision of services.

The seller is not entitled to claim any penalties or fees from you.

You must start repaying the credit only from the delivery of the good or the supply of the service.

The merchant shall not demand any payment before the signature of the credit offer and before the expiry of the withdrawal period following the conclusion of the credit agreement.

There is an exception with regard to the deposit. The trader can ask you for a deposit on order to reserve the property. This payment is not final and the merchant will have to refund the deposit in case of withdrawal or if the credit is refused.

If the bank or financial institution starts to collect the monthly installments before the delivery of the purchased product, you can ask them to stop by sending them a registered letter with notice of receipt.

You can use the following letter template:

Require time-to-pay to stop picking before delivering a credit item

Yes, you can repay the pre-allocated credit.

The procedure and conditions for early repayment must be indicated in the contract.

The bank may have a clause that requires you to pay an early repayment fee.

You can use the following letter template to apply for an early refund:

Inform the lender of your intention to prepay a consumer credit

If you have trouble paying back your monthly consumer credit, you can do the following:

• Ask your insurer to pay monthly payments on your behalf, if you have taken out insurance for the credit, and if your difficulties arise from one of the circumstances provided for in the insurance contract (for example, sickness, disability, loss of employment)
• Ask the financial institution that gave you the credit for any extension or delay in payment. The lender is not obliged to grant you these facilities.
• Ask the judge for a grace period, i.e. a suspension of repayments for a period of up to 2 years, without surcharges or penalties for delay. You will have to build a file with the documents that attest to your difficulties (resources, charges and reimbursements in progress in particular) and bring your home before the competent court.
• Drop a over-indebtedness record, if your difficulties are significant and lasting