You are looking for answers to better understand the terms and methods of operation concerning loans and credits, you will find your answers in this section or through links to state bodies or specialists in the field.
Commercial credit cards
Distributed by department stores, hypermarket chains, mail-order companies, they make it possible to pay for purchases in stores that are members of the network. At the point of sale, the borrower fills out a form by presenting his identity papers and giving his bank details (in case of direct debit). The file, once constituted, will be sent to the credit organization for acceptance.
As in all consumer credit, a prior offer is made to the borrower. It indicates, among other things, the nature of the credit (conventional or revolving), the interest rate used (variable or fixed) and the maximum amount of credit granted. The borrower has fifteen days to examine it before signing. In the event of an “approval clause”, the borrower’s request will be examined before agreement.
From the signing of the prior offer, the borrower has another seven days to retract you. To do this, the withdrawal slip (attached to the prior offer), dated and signed, by registered letter with acknowledgment of receipt, must be returned to the lending institution.
Warning: before committing, you should read the provisions of the contract which must be signed to know the nature of the credit granted.
Forms of credit
Thanks to the commercial credit card, a sum of money of a defined amount is available, with which purchases can be made. This amount must be repaid with interest. It is a classic form of credit whose interest and due dates are fixed in the initial contract. The sum made available to you is used in one or more installments for purchases. The authorized amount must not be exceeded.
With this credit card, the borrower can also have a sum of money which is recomposed as and when his repayments. The prior offer, mandatory for the initial contract (the amount of the credit is defined there), must indicate the nature of the credit (renewable) and the annual effective annual rate (TEG), to the exclusion of any other rate. The provisions of revolving credit apply to this type of credit card.
Deferred or immediate payment
When the credit card is used, immediate or deferred payment may be offered. The amount of purchases will be reported on the monthly statement sent by the credit organization. The borrower has a few days to choose to pay the bill in whole or in part. Repayment may be made in advance, partially or relating to the entire debt, without having to provide any justification or compensation to be paid.
For a conventional loan, the repayments are made in monthly installments, as fixed in the contract, and consist of part of the borrowed capital and interest.
For a revolving credit, the repayments are made up, according to the amount and frequency chosen (within the limit of a minimum amount), of part of the capital and interest due on the previous month. Ask the establishment that manages the loan to find out its actual cost.
When there is an opening of credit, on the back of the credit card, must be specified the mention “credit card” in legible characters. The credit card remains the property of the issuing institution. The borrower is required to return it if required. In the event of loss or theft of the card, the borrower must object by notifying the managing establishment.
Attention: the borrower must read the contract carefully to measure the extent of his responsibilities in the event of loss or theft.
Renewal, termination of contract
In principle, the contract is awarded for one year. If the borrower does not wish to renew it, termination of the contract may be requested by the borrower, by registered letter with acknowledgment of receipt, three months before the annual expiry date. The amounts due must be reimbursed.
The establishment can also terminate the contract, according to the terms provided in the contract.