Credit litigation: towards which financing solution?
Payment defaults, illegal interest rates, unfair terms … so many reasons that you will need to have a lawyer in case of litigation with the bank. Any problem that the bank causes you or vice versa can be designated as litigation. What are the weapons at your disposal to react to a credit litigation?
What are my recourse in the event of credit disputes?
If you have trouble paying your monthly payments, you can negotiate a payment term with your bank. If your repayment problem is one-off, you can send your bank an overdraft in writing. Indeed, you may have a regular income, but for some reason you were unable to access it on the scheduled date. In this case, the delay will be at most a few days. A word of advice: never take out another loan if you cannot settle your arrears.
If the difficulties are persistent because of a radical change in professional life (unemployment, demotion of post…) it is necessary to consider more radical measures. You can for example ask your bank for a rescheduling of the loan period over a longer period. In this case the monthly payment that you will pay will be more affordable which will allow you to rebalance your finances. If you reach an agreement with the financial institution, you will be given a new contract with the new terms.
A disputed credit can be settled in different ways. If you see that the discussion with your banker will end in failure or following a systematic refusal of your request, consider sending your settlement proposal by registered letter (with acknowledgment of receipt) to management of the agency. To give more weight to your advocacy, do not hesitate to put a copy of the letter at the head office of your brand.
What if the bank refuses the amicable solution you offer?
If the bank refuses, you can refer the matter to the magistrate. In fact, articles L314-20 of the consumer code and 1343-5 of the Civil Code authorize you to ask the governing body for a grace period. This time limit that you request can reach two years.
But it will depend greatly on your situation, regardless of the type of credit you have taken out. It is also possible that the judge may order during this grace period that the sums due be increased by interest. But beware, if it turns out that your situation is the result of poor management on your part, the use of a magistrate will not help you.
If your financial health is seriously degraded, a longer payment period may not get you out of your situation. As a last resort, you can therefore apply to an over-indebtedness committee. If you are a reliable customer and you manage to prove your good faith, this institution can help you to start negotiations with your bank and will suggest the establishment of a repayment plan.