Bad credit, what to expect

From the 1st unpaid

When you do not repay your consumer credit, the institution that granted it to you will not wait before reviving you. Thus, from the first unpaid installment, the credit organization will send you a letter, to inform you of the consequences of non-payment of installments. When someone has stood surety for you to obtain the loan, they will also be contacted.

After the 2nd unpaid

From the second overdue credit deadline, the credit institution can register you on the FICP file (National File of Personal Credit Incidents). If you do not repay the amounts due, your registration will last 5 years. However, upon regularization, your name should be removed from the file in the weeks that follow.

Because of unpaid bills, the financial institution will be entitled to request the lapse of the term of your consumer credit. Thus, it may require the repayment of the outstanding capital, interest, and ask you to pay late penalties.

Judicial collection: injunction or summons

The next step is to set up judicial recovery. The credit institution will be able to choose between two modes of action: the order for payment and the summons.

With the order to pay, the credit organization will ask the court to find that the debt is unpaid. When the judge thinks that the debt is legitimate, he can issue an injunction order to pay the sums due. This document will be served on you by a bailiff. At that point, you will have one month to challenge the decision. The dispute will be made at the office of the court where the order was issued. If you dispute the injunction, you will receive a summons for a hearing. During this hearing, the judge will hear the debtor's arguments, he will study the creditor's case again.

When the order for payment is not contested, the following month, the obligee can request the affixing of the enforceability form on the order for payment. Thus, the order will become enforceable. The obligee has the obligation to have it served on the obligor. The next step for the creditor is to seek enforcement of the order.

For the summons, a bailiff will give you a summons, on which will appear the date and time of the summons to court. On this document you will also find the reasons for the summons.

Finally, not repaying your consumer credit maturities can have serious consequences. Indeed, before the granting of any credit, financial institutions are required to carry out an audit within the FCIP. If financial institutions are not prohibited from lending to you, in general, financial establishments have difficulty lending to data subjects.

Whatever the case, be aware that there is a limitation period of two years. If before March 2016, this foreclosure period took into account all the debt. Since March 2016, the limitation period applies individually to each expiry. However, despite the prescription, the claim is not extinguished. Thus, the establishment can no longer go to court to claim the debt, the only possibility left for the creditor is to obtain an acknowledgment of debt from you. Because, it is the acknowledgment of debt that will make you liable for this debt. So when you have a prescribed debt, do not sign an IOU.