When a borrower enters into a consumer loan contract, he or she has obligations to fulfill as well as rights. The rights in a consumer loan apply before the contract is signed and during the repayment period. These rights are the same for all borrowers.
Consumer loan: The right information
Before signing a consumer loan agreement, the lender must provide the borrower with an offer including all the necessary information on the credit agreement:
- the amount and duration of the loan;
- the total cost of the loan;
- the annual percentage rate of charge (APR);
- the date of deduction and the amount of monthly payments;
- the amount of compensation if there is a delay in payment.
These borrowing conditions must remain the same for the borrower for a period of 15 days. Once the contract is signed, the lender must inform the borrower at least once a year of the amount remaining to be repaid.
Consumer loan: The right of withdrawal
The borrower can choose to retract after signing the contract. This retraction must be made within 14 days from the day after the date of subscription of the credit. If the amount borrowed has already been paid, the borrower must return it without paying any compensation.
Consumer loan: The right to reimbursement
The borrower can use insurance to alleviate any problem of repayment of his consumer loan, in the event of death or disability in particular. He is free to choose the insurance of his choice. If the borrower is in financial difficulty, he can ask a magistrate to suspend his credit. The judge can then decide to change the staggering or lower, a time, interest rate. It is also possible for the borrower to repay the credit in full, in advance, before the end of the credit agreement.