Consumer Loan: Credit Allocated

Verified 23 April 2020 - Directorate for Legal and Administrative Information (Prime Minister)

The appropriation is a loan for a specific purchase: movable property (movable property, car) or a service (travel). It cannot be used for anything else. The seller or service provider can offer this loan, but you can also purchase it from your bank or financial institution. The credit agreement assigned must comply with the rules on consumer credit.

The appropriation is tied to a specific purchase: a good or service. For example, a credit to buy a car or a trip. This is the type of credit that is granted when a seller offers to pay in installments.

The credit obtained must be used solely to pay for the property or defined benefit. If the sales contract does not take place (e.g. if you withdraw from the contract), the cancelation of the credit agreement will be automatic, even if the institution has given its consent.

The assigned credit is granted and managed by a bank or credit institution.

Generally, the purchase itself and the credit application are made during the same transaction. The steps are then taken directly at the place of sale (or on the same website in the case of a remote purchase).

The credit assigned respects the rules of consumer credit. Thus, the lending institution must start with a information phase, during which he must check your creditworthiness, to know if you are able to repay the credit. When purchasing remotely, some sites offer an immediate review of your situation.

If your credit application is accepted, the lender will provide you with their credit offer. The offer must specify the property (or service) to be financed and its spot price. You must also receive a document that clearly indicates the credit terms, the amount of the credit, and the annual percentage rate of charge (APR).

Warning  

the sales contract cannot force you to make the purchase and pay cash (all at once) if you don't get your credit.

If you accept the offer and sign the credit agreement, you have a withdrawal period after the signature.

You have 14 calendar days from the signature of the contract to carry out this procedure with the lending institution. You can use the form provided with your credit agreement or mail template:

Withdrawal of consumer credit

You must send your request by registered letter with acknowledgement of receipt.

FYI  

the withdrawal period shall be reduced if you want to be delivered immediately after purchase.

The total amount of the credit must be between €200 and €75,000.

The credit must be granted for a period longer than 3 months. And the refund has to be monthly.

So you will have at least 3 monthly payments to be paid.

You start to refund only from the delivery of the goods or the provision of the service.

No final payment may be required before the signature of the prior credit offer and before the expiry of the withdrawal period following the conclusion of the final credit agreement.

Please note

the seller may, however to charge a deposit to order to reserve the property. He will have to repay it in case of withdrawal or if the credit is refused.