Whether for the purchase of a car, work in a house, or an expensive personal project, such as the organization of a wedding for example, banks are constantly solicited for loans in the form of consumer credit or credit termination following an unforeseen event.
Many financial institutions in France thus offer this type of credit at rates sometimes unbeatable. However, if it is relatively easy to get this type of contract with your bank, what about when it comes to terminating it? In the event of an unforeseen event, is it possible for an individual to cancel his consumer credit? And if so, how? This is what we will see in this article.
The different types of consumer credit
Consumer credit can come in four different forms where the terms of borrowing, with or without the ability to terminate, vary.
The assigned loan
First, there is the loan allocated to a given expense. Although it requires the consumer to define beforehand the expense for which it makes its loan, its termination is very simple since the obligations vis-à-vis the bank appear only on acquisition of the property. Canceling the purchase decision cancels the credit.
The personal loan
On the other hand, there is the personal loan. Opposed to the principle of the loan allocated, it is not necessary to define the purchase that one wishes to make thanks to this credit. To cancel, it is therefore necessary to make an early repayment of credit, which can sometimes be done without payment of compensation, or to send a letter of withdrawal within 14 working days of acceptance of the offer as provided by the so-called Lagarde Law of 1 July 2010.
Personal standing credit
It is also possible to opt for a permanent personal credit. The latter consists in making available, usually for a year, a sum of money to an individual. The latter can use it as and when repayment. This consumer credit is subject to the Scrivener law, which allows the borrower to prepay the credit without additional fees or penalties, regardless of when the refund decision is made. In addition, as for the personal loan, the Lagarde law applies and the deadline of 14 working days for a decision of retraction is preserved.
Subscribe to a credit from home
Finally, thanks to the development of new technologies, it has been possible for almost 20 years now to subscribe to consumer credit online. Simpler, faster, more adapted, these loans have quickly multiplied on the web. The same terms and conditions imposed by the Lagarde law apply to this type of loan.
Finally, it has become relatively easy to terminate a consumer credit since the 2010 law which increased the withdrawal period from 7 to 14 days. However, it must be remembered that depending on the type of consumer credit chosen, the prepayment process may incur additional fees, or is simply not possible.