When a borrower signs a contract for a consumer loan, he certainly has obligations to fulfill, but also rights. The rights in a consumer credit apply before the signing of the contract and during the repayment period. These fees are the same for all borrowers. An explanation over at joshuamacy.com
Consumer credit: The right to information
You have a right to know what information your credit reports contain. By request, you may obtain a free copy from each of the three national credit bureaus every year. You have a right to know your credit scores.
Before signing a consumer credit contract, the lender must provide the borrower with an offer including all the necessary information on the credit contract:
- the amount and duration of the loan;
- the total cost of the loan;
- the overall effective annual rate (APR);
- the date of withdrawal and the amount of the monthly payments;
- the amount of compensation if there is a delay in payment.
These borrowing conditions must remain the same for the borrower for a period of 15 days. Once the contract has been signed, the lender must inform the borrower at least once a year of the amount remaining to be repaid.
Consumer credit: Right of withdrawal
The borrower can choose to retract after signing the contract. This withdrawal must be made within 14 days from the day after the date of subscription of the credit. If the borrowed amount has already been paid, the borrower must return it without paying any compensation.
Notice of withdrawal can be given in any way and, if the consumer does withdraw, he must repay the credit and any interest that has accrued for the time that he has had the credit within 30 days.
Consumer credit: Right to refund
The borrower can have recourse to insurance to alleviate any problem of repayment of his consumer credit, in particular in the event of death or disability. He is free to choose the insurance of his choice. If the borrower encounters financial difficulties, he can ask a magistrate to suspend his credit. The judge can then decide to modify the installment or to lower the interest rate for a time. It is also possible for the borrower to repay the credit in full, in advance, before the end of the credit contract.