Early Repayment Of Consumer Credit
The early repayment of a consumer credit is the total or partial repayment of the remaining capital due to the lender. What do you need to know?
The early repayment of a consumer credit is the total or partial repayment of the remaining capital due to the lender.
Know that legally, your lender can not refuse you the early repayment of your credit, whether total or partial. Also, do not hesitate, the early repayment will allow you to avoid the payment of interest on the outstanding capital. Whether or not you have to pay a prepayment fee, for all consumer credits purchased after May 2011, you will not have to pay interest on the remaining term of the loan.
If the financial institution can not prevent you from repaying, it may charge you under certain conditions prepayment compensation. Thus, if the amount of the prepayment is less than € 10,000, you will not have to pay any compensation.
However, if the amount of the refund is greater than € 10,000, and the repayment period was greater than one year. So you will actually have to pay penalties.
The remaining duration of your consumer credit will determine the level of compensation. So that if the remaining duration is greater than one year, the maximum amount that you may be charged will be 1% of the repaid principal. When the duration is less than one year, the compensation increases to 0.5% of the capital.
Whatever the case may be, the amount of prepayment indemnities may not exceed the amount of interest that should have been charged to you.
A prepayment allowance can not be charged for authorized overdrafts, revolving credits. Similarly, if the refund is made when the applicable rate is variable rate, or if the refund is linked to the execution of an insurance contract, you will not pay compensation.
Refund your advance consumption credit
You must first send a registered letter with acknowledgment of receipt to your banker. In this mail, you will ask him to provide you with a statement of your credit to proceed with the early repayment. Your mail must be sent at least one month before the scheduled repayment date. It is thanks to this count that you will know precisely the amount to repay.Finally, when you can, do not hesitate to pay back your consumer credit. This will allow you to reduce the interest paid, and increase your borrowing capacity if you want to do another project. So, if you have a return of money, do not hesitate. top