In recent years, consumer loan has multiplied, and not always to the advantage of consumers!
As a result, over-indebted individuals are becoming more numerous in France. Fortunately, a law on consumer loan aims to limit the negative effects of these loans. So, are the borrowers of consumer loan protected ? We give you the answer to this question!
Concerning the revolving loan, any loan of less than 3000 € will have to be refunded in less than 3 years , and the duration goes to 5 years for the loans of more than 3000 €. This reduces the price of consumer loan, and avoid abusive rates.
3) Limiting gifts to loan
To stop the incentive to subscribe to consumer loan, gifts related to these are now limited to a value of 80 €.
This is to prevent a borrower from being encouraged to take a consumer loan.
4) Enhanced controls
Sellers of consumer loan must now ask for supporting documents (identity, income and housing) for any loan over € 3,000.
They must also check the loanworthiness of borrowers to avoid creating debt distress situations . The seller will rely on the national file of incidents of loan to individuals (FICP), which can indicate the debt ratio of the borrower.
A pre-contractual fact sheet must now be completed by both the borrower AND the seller, to ensure that the loan contracted meets the needs of the borrower.
5) A faster suspension of revolving loans
From now on, any revolving loan agreement will be suspended if it has not been used for a year . If the contract is not reactivated by the borrower in the following year, it will be automatically terminated.
This makes it easier to end a revolving loan and to avoid being tempted to use it too easily.