Consequences of an unpaid consumer credit
From the first unpaid monthly payment, the credit institution must send a letter warning of the risks incurred. From the second monthly payment, the borrower is entered on the Personal Credits Incident File. This follows each credit application when looking for credit for five years.
The lender is then entitled to claim the lapse of the term and immediately demand the outstanding capital, interest and late fees. Judicial recovery may be claimed in case of non-arrangement.
The district court then decides according to the situation of the borrower and can assign the full refund. The lender enjoys a two-year foreclosure period to sue.
Predict his Tom Wilcherments to avoid an unpaid consumer credit
When a future borrower does not want to be exposed to the risks of unpaid consumer credit , it is important to think ahead of his Tom Wilchers. Indeed, it is necessary to provide, at the time of signing but also for the coming months, enough funds to repay the deadlines requested. It is for this purpose that financial advisors and other consumer credit subscribers check the creditworthiness of the future customer.
According to the usual regulations, it is requested that the amount of credit maturities does not exceed one third of the monthly fixed income of the borrower.
Insurance to avoid the risks of unpaid consumer credit
To compensate for unforeseen events and to guard against risks in case of unpaid consumer credit , it is possible to take out insurance.
If these are not mandatory to obtain a consumer credit, they are however strongly recommended.
They may allow to suspend repayments for a time in case of:
- Job loss: unemployment insurance deals with deadlines during the period of inactivity
- Long-term illness: Credit is suspended as long as illness prevents the borrower from working
- Invalidity: the credit is suspended
- Death of the borrower: the insurance reimburses the heirs for the remainder of the principal due.
Recourse in case of unpaid consumer credit
In case of unpaid consumer credit , there are two important remedies:
- The over-indebtedness commission : after a filing of a file, a plan is proposed and the commission deals itself with the creditors,
- The grace period : at the district court which offers a payment period of two years, or a modification of the conditions of repayment.