Redemption of prohibited bank credit.
The state of banking in France
In common parlance, this expression can be generalized to borrowers in conflict with their bank following an unpaid loan payment. The latter are, for their part, on file with the FICP (National file of loan repayment incidents to individuals), also managed by the Lite Lender.
Consequences of the banking ban, the use of the bank account is limited to only the basic services provided by the Right to the account, which automatically leads to the loss of part of its rights and privileges: deletion of the overdraft authorization , putting bank cards in opposition, prohibition on taking out credits, etc. However, the customer will still have the possibility of depositing checks, depositing or withdrawing money at the bank counter, or even paying their expenses by direct debit or by bank transfer, provided that the account is regularly funded.
It lasts 5 years at most and ends after the payment incident has been settled.
What is the prohibited banking credit redemption?
Bank banned credit redemption is therefore intended for persons registered with the FICP and FCC. This operation makes it possible to gather all the credits in progress under the same loan. The objective is to lighten monthly payments as much as possible and reduce the share of income devoted to repaying loans, which will have the effect of improving the “remainder of living” and allow the borrower to regain purchasing power , and therefore to find a more balanced financial situation. It is the best solution to put an end to the vicious circle of over-indebtedness, since when we find ourselves in this situation, all the doors are closed.
Note however that this operation leads to an extension of the repayment period and the interest payable will be higher. Likewise, we should also be attentive to the costs of preparing the file and the cost of death and disability insurance, which could considerably inflate the bill.
How to obtain a credit buyout for banking prohibition?
For owners of real estate, they can always make a request to their banker, provided they agree to put their main (or secondary) residence in mortgage. In the hope of recovering its money, the bank will certainly agree to buy back all of their outstanding credits, but could however revise the interest rate upwards. Of course, the agreement is not systematic, since each lending institution has its own decision methods and moreover, each case is different.
What are the eligibility conditions?
In general, banks recommend going through a consolidation before initiating an over-indebtedness procedure, which will lead to a filing of the client.
In other words, justifying regular income and having a substantial deposit help to put the odds on its side, which is not always the case for a temporary worker. This is quite understandable since banks expose themselves to insolvency risks by granting loans to their customers, which can then threaten their financial strength.
Before committing, it seems useful to take stock of your personal situation. Thus, the first thing to do is to determine its debt capacity, that is to say the weight of the amount of repayments in income. It is commonly accepted that he should not exceed a third of his salary.
Then, it seems just as important to compare the rate of over-indebtedness with that applied by the lender who grants the redemption of the credits object of the filing. Here, do not hesitate to play the competition.
Finally, it is essential to assess his personal guarantees. Indeed, the real estate in the grounds even if they are buildable cannot be used as mortgage. However, it is clear that homeowners will be more likely to get a favorable opinion from lenders.
In all cases, the banking ban being a delicate situation, it is particularly recommended to be accompanied by a specialist. With fifteen years of experience in credit brokerage,Capital Lender assists you throughout your project and searches for you the offers for the repurchase of banned bank loans which correspond to your current financial situation. We provide you with credit buyback simulators to help you better draw up your borrower profile.