The affected loan
When your project is the acquisition of a good or the provision of a service, you can call on a consumer credit. It can be used for example to finance the purchase of a new car, a television or a trip. Its amount is between € 200 and € 75,000. There are three types:
- The personal loan, with which the borrower can use the amount of credit as he sees fit.
- The revolving loan, usually accompanied by a credit card, the amount of which constitutes a reserve that the borrower can also use freely and which is reconstituted over the repayment.
- The affected loan, which on the other hand is linked to the purchase of the good or service mentioned on the credit agreement.
The cost of the affected loan is often lower than that of the revolving loan or personal loan. This is because the lender is remunerated according to the risks he takes. In the case of an unallocated loan, the lender does not know how you will use the loan amount and therefore has less collateral regarding the non-repayment of the loan.
How can I get an affected loan?
The assigned loan is only used to pay for the good or service specified by the contract. The sales contract (between the seller and you) and the credit agreement (between the bank and you) constitute a single commercial transaction. When a seller offers to pay for your new laptop in three installments, this type of loan is granted.
In general, the affected loan is offered directly at the point of sale, for example a merchant site, a travel agency or a car dealership. It is also possible to make a request to your bank or a credit institution.
The lender (or the seller if you are at the point of sale) will provide you with a pre-contractual information sheet. It contains all the information you need to make your informed decision. Among others (for a complete list see article R311-3 of the Commercial Code):
- The identity and address of the lender as well as, where applicable, the identity and address of the credit intermediary (the seller, if the request for the credit agreement is made at the point of sale)
- The type of credit (affected loan)
- The total amount of the loan and the conditions for making the funds available
- The borrowing rate and the conditions applicable to this rate
- The amount, number and frequency of installments that the borrower must pay
- The total amount owed by the borrower
- The good or service for which the loan is allocated and its cash price
The credit institution will check your solvency using the information on your financial and personal situation that it will have asked you to provide. If the amount of the loan affected is greater than € 3,000 you will need to provide proof of address, proof of income and proof of identity. He must also consult the national file of incidents of repayment of loans to individuals (FICP).
The affected loan offers good protection to the borrower because his obligations to the bank and the release of funds do not begin until the product is delivered in good condition. If the product is not delivered or defective, the sale is canceled and the loan too.
Most of the time, the affected loan amount is not made available to the customer on his account, as would be the case, for example, for a personal loan. It is paid directly to the seller. If this is the case, in the event of cancellation of the sale, it is the seller who will return the amount of the loan to the lender.
How do I cancel an affected loan?
First of all, it is forbidden for the lender to issue the funds for the first seven days. There are two cases for which the contract is terminated (ie it is not executed), and this without any compensation from you. The first case arises if the bank has not informed you of its decision whether or not to grant you the affected loan within seven days of signing the credit agreement. If a response has not reached you at the end of this period, the request is considered refused and the sales contract is not executed.
The second case is when you exercise your right of withdrawal within the same 7-day period. If you have made the request for an immediate supply (without waiting for the end of the withdrawal period) of the good or the service, this period is three days. Of course if a deposit had been paid, the seller is obliged to reimburse you on a simple request from you.
If the affected loan has been refused to you, you can renounce the purchase of the good or the provision of service or you can decide to pay it in cash if this solution is possible for you, but there is no commitment of your part in this.
In order to exercise your right of withdrawal, a slip provided for this purpose is attached to the credit agreement. You must send it to the credit institution, duly completed, dated and signed, within 14 calendar days of signing the contract. The day of signing the contract counts within this period, and there is no extension if the last day of the deadline is a Sunday or a public holiday. This withdrawal period is mandatory, no clause in the credit contract can make you renounce it.
In the event that the detachable withdrawal form is not provided with the contract, you can send a registered letter with acknowledgment of receipt to the lender. The letter must be handwritten, dated and signed and it must include your first and last names, the amount of the loan affected, its date of acceptance, and you must also specify the good or service to which the loan was allocated as well as the name and city of the seller.
Beyond the first seven days, the lender can disburse the funds. In the event of withdrawal, you reimburse the capital paid by the credit institution and pay the accrued interest for the period between the payment of the credit and its reimbursement, and this within thirty days from the notification of your withdrawal to the lender. Interest is calculated on the basis of the borrowing rate set by the contract. You do not owe any compensation to the lender. In addition, you do not have to provide a reason if you decide to retract, and the credit institution does not have the right to record it on a file under penalty of being fined.
How is the repayment of the affected loan carried out?
You start to repay the affected loan only from the delivery of the good or the provision of the service. If it is a successively executed sales or service contract, your reimbursement begins from the start of delivery and ceases in the event of an interruption.
The receipt slip signed by you is sent to the lending institution by the seller. This voucher proves that the delivery has been made and the funds are paid to the seller. If the lender asks you to begin repaying the affected loan before delivery, decline and ask them to provide you with a photocopy of the delivery slip.
You have the option, if you wish, to repay your affected loan early in part or in full. In this case, the lender may ask you for compensation which may amount to 1% of the amount of the early repayment if it exceeds € 10,000, and 0.5% if it is less.
If you do not pay the monthly repayment installments, the lender may demand immediate repayment of the outstanding principal, in addition to the unpaid interest. Until the date of effective settlement, the amount payable earns interest at the same rate as the loan allocated. The lender will also be entitled to claim compensation for late payment which will depend on the remaining duration of the contract.
It is therefore advisable, in the event of payment difficulty, to notify the credit institution as quickly as possible without waiting for the situation to get out of hand so that you can arrange your repayments together. Make him a redevelopment proposal by showing him proof of your financial difficulties. If he accepts, ask him for written confirmation of the redevelopment. If he claims compensation from you, it may not exceed 4% of the amount of the outstanding installments to be paid.
If you cannot reach an agreement with the lender, you can apply to the judge of the district court in your home. He may reorganize the payment of your monthly payments or suspend them for a maximum period of two years.
If the borrowing rate changes during repayment of the affected loan, the lender must notify you before the change takes effect. He will communicate to you the new amount of the installments and, if necessary, the modifications of the number or the frequency of the installments.