000 euros down to 14 for loans of a higher amount

Insurance-borrower

The cost of insurance will be included in advertising and the supply of contract. If it is a real estate loan, the borrower will be more compelled to purchase the contract of the lender. The latter may reflect the cost of insurance on the credit rate. If the lender of choice by the borrower to individual coverage, it must give reasons for its decision.

Revolving credit

Revolving credits will require a minimum depreciation so that a minimum capital, and not only the interest is paid within a period of three to five years. Lenders will have the obligation to offer a personal credit as an alternative to the revolving credit above a certain amount. Cash payment will be enabled by default for loyalty cards. Lenders will have to check the creditworthiness of borrowers who subscribed a credit consultant every year the FICP, and conduct a full review every three years. Based on the results, the contract may not be reappointed.

Time of retractation

The time of retractation is worn from seven to fourteen days.

Dialogue fact sheet

For the credits on the place of sale or remotely, the lender must establish with the borrower a dialog sheet, establishing resource and expense of the borrower, as well as, where appropriate, current loans. In the absence of supporting documents requested by the lender, it will not oppose the borrower in case of dispute the dialog sheet.

Pre-contractual information sheet

Before that the consumer is bound by a contract or a supply of credit, it must obtain from the lender a prescribing distinct information for the offer and contract.

Positive file

The Bank of France will lead the drafting of a report on the advisability of creating a register of credit to individuals within a period of eighteen months, and more than three years. The rapporteur of the text advocates the strengthening of the existing file of the incidents of payment by the integration of a preventive warning (round table of creditors to consider a rescheduling of debt of the debtor) and the study of local experimentation, for example departmental, under the aegis of a branch of the Bank of France, a positive file.

Microcredit

Individuals will be able to fund associations of micro-credit via an Internet platform. Banks will have obligation to communicate their actions in this area.

Advertising

Ads must disclose the percentage rate of the credits, the duration of the contract, the total cost of credit, optional insurance, a representative example. They should include a mandatory warning that a credit is a commitment and must be repaid. They cannot contain misleading forms suggesting that credit may be granted without examination of the creditworthiness of the borrower, it improves the financial situation, or that it causes an increase in its resources or savings, or that a money reserve is without consideration.

Solvency of the borrower

Apart from the major provisions (overindebtedness, depreciation of renewable credits, rates of wear and tear, decoupling of fidelity as well as maps of insurance), the text will in the sense of a strengthening of control of the creditworthiness of borrowers. The rapporteur, François Loos, wants the banks to consult every year FICP (national file of the incidents of repayment of the credits) and conducts scrutiny, even suspend loan every three years. Banks can raise the sheet dialog in case of dispute only if the borrower has provided supporting documents. In its report, the rapporteur said as favourable to a preventive alert through the FICP which would lead to a rescheduling of debt after banks. Finally, it is favourable to a local experimentation of the positive file and wondered about an extension to all the credits.

Overindebtedness

The time of registration to the FICP reduced to five years. To ensure a more rapid support, the text changes the composition and functioning of the commissions of over-indebtedness, and the procedure. The expenses taken into account in the rest to live will include the costs of health, child care. The commission shall decide on the direction of the record not more in six, but three months. The Bill provides an automatic of the claims of the creditors stay as soon as the record is admissible. The commission may impose certain measures without the requirement that the judge gives them a binding power.

Wear rate

Limits on lending rates will be more determined according to their nature, but only to their amount. The measure aims to facilitate access to the personal, less expensive, loans for small amounts. The measure will increase the rate of wear of personal loans by about six points and decrease of at least five points of renewable appropriations beyond 1.524 euros. Thresholds ceilings should remain around 20 for loans less than 3,000 euros, between 15 and 18 for loans from 3.000 to 6.000 euros, down to 14 for loans of a higher amount.

The draft law on lesechos.fr/documents