How to suspend your consumer credit maturities?

In difficult times, when you have to deal with unforeseen expenses, or life's mishaps, you may need to put your credit maturities on hold. This suspension of credit maturities is also called, the postponement of credit maturities. But before thinking about the postponement, if you have taken out insurance, look carefully at the clauses of this insurance. This insurance could possibly cover the reasons for which you wish to postpone your credit maturities (unemployment, illness, loss of autonomy, death…). We strongly advise you to get in touch with the lender as soon as the difficulties arise, and even to take the initiative. It is better to postpone your loan maturities than to be in default of payment for its maturities. Indeed, if you have been in default of payment for a deadline, the lender will be less inclined to grant you a deferral of deadlines. At the end of several deadlines in default, he could claim the repayment of the credit in its entirety.

Consumer credit contracts may or may not have a deferral clause. Deadline postponement clauses may relate to partial or total postponement.

The deadline extension procedure

To obtain the postponement, you must send to the financial institution from which you acquired your credit, a request for postponement of the deadline. In this letter, you will of course have to specify the references of your loan file, the deferral period you are requesting. We strongly advise you to specify the reasons for which you wish to benefit from an extension of the deadline.

If your financial institution refuses to grant you the postponement you are requesting, you still have the option of going to the district court. Indeed, this possibility is provided for by the Consumer Code.

Thus, according to Article L312-13 of the Consumer Code: "The performance of the borrower's obligations may be, in particular in the event of dismissal, suspended by order of the magistrate under the conditions provided for in the Article L343-5 of the Civil Code. The order may decide that, during the grace period, the amounts due will not earn interest. In addition, the judge can determine in his order the terms of payment of the sums which will be due at the end of the suspension period, without the last payment being able to exceed by more than two years the term initially foreseen for the repayment of the loan; it may, however, postpone ruling on these terms until the end of the suspension period. ”

These legal provisions particularly concern holders of consumer credit below € 21,500. If the total amount of the remaining installments is less than € 4,000, all you need to do is make a declaration at the registry to seize the district court. If the amount is greater than € 4000, you will have to assign the credit agency, via a bailiff. The cost of this procedure will be around 70 €.

Consequences of postponement

When the credit institution accepts your postponement, it may nevertheless charge you management fees. We advise you to check your contract. Depending on the type of deferral, you can postpone the payment of principal and interest, or only the payment of principal.