Consumer credit: unpaid and means of recovery

When you take out a consumer loan, you agree to reimburse your creditor. Also, if applicable, the financial institution that lent you the funds may carry out certain actions within the legal framework. As soon as you have more than one overdue repayment term, the creditor will register you on the FCIP file.

Amicable recovery

First of all, the first means which any institution will use in order to collect a debt, is amicable collection. First, the manager of your debt will send you letters, then your file will be sent to the collection department. As part of amicable recovery, without any agreement, your creditor may send your file to a recovery specialist.

A collection specialist

When amicable collection fails, your creditor will take the next step by appointing a third party to collect the loaned funds. Also, he can call on a company specializing in collection. In this context, this company will contact you by mail and by telephone. However, don't be intimidated, these companies can't afford everything. Thus, they cannot harass you at your home, or even at your work. Likewise, they are prohibited from invading your privacy. Also note that the collection costs are not your responsibility, but that of the creditor.

Without an enforceable title, these companies are not authorized to seize your accounts or your property.

Bailiffs, simplified procedure for small claims

Some creditors prefer to directly mandate a bailiff to ensure payment of the debt, regardless of its amount.

Since October 2016, when the overdue debt represents less than 4,000 € (principal and interest included), the creditor can obtain an enforceable title without judgment by instructing a recovery bailiff.

Thus, if your debt is less than € 4000, the bailiff will send you a letter with acknowledgment of receipt to set up the amicable recovery procedure. Therefore, you have a period of one month to contact the bailiff in order to negotiate the terms of payment. Otherwise, in the absence of a response from you, at the expiration of this period, the bailiff may issue an enforceable title, in order to proceed with the forced recovery of the debt. Note that the bailiff who issued the writ of execution cannot take charge of the seizure.

Judiciary process

Without agreement, if the amount of the debt is greater than € 4,000, then the creditor can directly go to court. The judicial recovery of the debt will go through your legal action. Then, a judge will investigate the case, at the end of the investigation, he will deliver his judgment. If you are ordered to pay, it will issue an execution title which will allow your creditor to seize it to recover its funds.

Finally, if you are in a difficult situation, you can file an over-indebtedness file. If the filing of your over-indebtedness file does not exonerate you from paying your debts, nevertheless, you can suspend the current foreclosure procedures.