Prepayment of consumer credit



As specified in article L312-34 of the Consumer Code, a borrower can partially or fully repay the remaining amount of a consumer credit in the process of being repaid. He can make this early repayment without having to justify himself to the lender, at any time. The lender cannot oppose this approach but it can apply early repayment indemnities (IRA). The amount of these indemnities will depend on the date on which the payment will be made, if the reimbursement is made within the last 12 months, the indemnity will be at most 0.5% of the principal remaining due. As part of a reimbursement made more than 12 months before the end, the indemnity will be 1% of the principal due.

No indemnity is due when the credit concerned is a bank overdraft, a revolving loan, a variable rate credit, an amortizable credit whose amount reimbursed is less than 10,000 dollars. Note that loans taken out before April 30, 2011 are exempt from all compensation.

Early repayment by own means

loan payment

The early repayment makes it possible to put an end to a debt, it is also a shortfall for the bank or the credit organization but the latter cannot oppose it. If the borrower wishes to terminate the credit on his own, he will have to repay the remaining amount. He must therefore consult his credit contract in order to find out about the terms of early repayment, it will also be necessary to contact the lender to inform him of the process.

A household having received a sum in inheritance, having won lottery games or having simply sold a good can resort to prepayment. The idea is to settle a debt quickly so that you no longer have to pay monthly payments. You must therefore know the amount remaining and have the necessary amount to be able to close the consumer credit contract.

Early repayment by the repurchase of credits

credit loans

A borrower wishing to settle one or more debts can resort to a consumer credit buyback operation. The idea is to ask a credit institution specializing in the repurchase of debts to group together the different household credits to set up a single contract, whose rate will be fixed and the repayment duration adapted. The idea of ​​this operation is mainly to offer a smaller monthly payment, much more suited to the situation of the borrower.

The bank will therefore proceed to the early repayment of each of the credits by sending a transfer to each creditor, the sums which remain to be reimbursed will in fact be transferred to a new credit contract and set up from the following month. The borrower can therefore benefit from a reduction in monthly payments and have a single monthly withdrawal from a bank account.