Month: November 2019
Although no one even wants to think about it, sometimes the person who takes out a cash loan dies. What happens with debts then? Do they pass on to someone, and if so, how should they be reacted? We will try to answer these questions in the text below. Situations of this type are extremely difficult, but we should remember that the path of action results from legal acts and we must stick to it.
Death of the Borrower
Suppose for the purposes of the article that the borrower died. Usually, the repayment obligation is transferred to the co-borrowers, if any. If not, then the question of loan insurance arises. If the cash loan was insured, you should report to the appropriate insurance company. Either the bank or the heirs do it. The insurance company examines the case and, if it considers that compensation is due, pays it. Thus, the heirs cease to be responsible for paying the debts of the deceased because they are settled by the insurer. If the loan was not insured, the heirs are obliged to repay it, but only if they accept the inheritance. In this situation, we must report to the bank branch along with the decision to acquire the inheritance or a notary deed certifying our inheritance.
How to defend yourself against debts?
If the debts of the deceased are too large for us or we simply do not want to pay them, regardless of their size, we can renounce inheritance, ie reject the inheritance. We have half a year since the death of a person whose property and debts are inherited. It is also possible to accept an inheritance with the benefit of inventory. In this situation, we are responsible for the debts of the deceased person up to the amount of his property, thereby protecting our own goods. Before we accept the inheritance, we should think carefully about our decision. Let’s remember that we have six months to take it. However, if during this period we do not make any statement informing about our decision, then it is considered that we accept the fall in full with all debts.
More and more credit agencies are offering “all online” solutions. Can you really get a mail-only bank loan, and what will be the mandatory steps to get the desired amount? Explanations.
An increasing number of online services
Since the democratization of the internet, the range of online services has grown steadily. Online shopping, ebooks, e-banking, online administrative forms, the behavior of uses is gradually changing while more and more procedures can be carried out from home. Consumer credit is no exception. However, subject to the Law on Consumer Credit (LCC), bank borrowing cannot yet be done entirely online.
What is available online
If the internet does not yet make it possible to take all the steps to obtain a loan, most of the steps for obtaining a loan can now be carried out on your computer with most credit agencies (such as GoodCredit for example ). Thus, it is possible:
- Apply online for credit : via a more or less complete form to indicate your situation and the desired terms.
- Send your documents online : these are necessary for studying the file and include, among other things, a copy of the salary statements and the identity card / residence permit. Please note, a good quality scan is generally required (prefer a scanner to a camera).
- Manage your correspondence online, whether by e-mail or by phone.
Not everything is possible online
For security reasons, certain procedures must be carried out either by direct contact or by post. More specificly:
- The signed credit contract must always be physically given to the service provider. It is then possible to bring it by hand or to go by post.
- The customer must be identified, this to verify that it is he who borrows the money. This can be done either at the counter of the bank or credit agency, or through a yellow identification. The latter is a document that can be issued by any postal office in Switzerland.
The borrowed amount can either be withdrawn by hand from the credit bank, or paid into a bank account or postal account of your choice.
Towards future change?
More and more administrative procedures are possible online, and it is not to be excluded that the future will allow borrowing while online. The main obstacles today are the signing of the contract and identification. If the digital signature could be adopted for consumer loans, identification remains a problem today.
A multitude of credit offers are filled with various financial products. You can often find a refund of payday loans without bids . What does this mean in practice and who can benefit from such an offer? This type of offer can be a great incentive for people who are in debt. What is BIK which is an obstacle to applying for a loan? This is the Credit Information Bureau, a product created for the needs of banks to have information on borrowers in one place. The collection of information consists of credit history, installment history, late repayments or lack thereof. Based on such data, banking algorithms calculate consumer creditworthiness. So what does BIK have to do with the offer of parabanks?
Payday loans for those in debt
If you are in debt with an uninteresting credit history, the only chance for you to get extra cash is pay without pay. According to this offer, the financial institution will not check your credit history to decide on the basis of borrowing additional cash. Therefore, by applying for payday loans without bids, you decide on an offer that will be much higher in costs than a regular loan or payday payday loan. However, this is the price the client pays for bypassing the verification barrier at BIK. A very important element when deciding on this type of cash is compliance with all repayment deadlines. Regardless of whether it is an installment payment or a one-off payment. Omitting or delaying repayment may cost us extra.
Free first loan
What is an argument for taking this type of offer is certainly the high grant of cash. However, when using this type of home budget financing, you need to pay particular attention so as not to fall into a spiral of debts, from which it will be difficult for us to get out. In addition, when choosing this product, we must take into account that the costs of receiving it will be associated with additional fees resulting from the assurance of the loan company. Therefore, before we decide on choosing an online wallet, no cash pay first, make sure that all other options for obtaining a loan fall off.
The credit curve does not crumble at the start of the new year and European monetary policy should not change the situation. However, the body which controls the stability of the French financial market intends to add restrictive measures for the banks.
Credit enjoys good vitality in France
The body that oversees the stability of the financial system, the High Council for Financial Stability (HCSF), recently announced its concerns about the level of indebtedness of the private sector as well as businesses. This debt is calculated by reconciling the sum of total credit outstanding with respect to the Gross Domestic Product (GDP), ie the total wealth created by a country. And the HCSF specifies that three-color households are at the head of a debt ratio of 133.3% of GDP at the end of the third quarter of 2018. Companies hold an even higher rate with 175% during this period. same period.
It should be added that the context is particularly favorable for borrowing. Households can get credit deals at extremely low interest rates. And the Righteos Bank has decided to extend the period of low rates. It therefore maintains an accommodative monetary policy, in particular to support economic activity within European countries and generate growth.
Also, households benefit from a real relaxation of the conditions imposed by the banks which seek to compensate for the little margin generated from the credits they receive by a higher production of outstanding amounts. A decision that illustrates the good performance of outstanding loans in January 2019 which increased by 6% over one year on the market of individuals, but also of professionals. France is also the only territory in Europe where credit continues to grow.
Banks summoned to reassess their capital
Now, for the sake of vigilance, the HCSF has reinforced the regulatory constraints that affect banking establishments. The supervisory body requires increased vigilance when analyzing the risk before granting loans.
Finally, the HCSF plans to raise the capital requirements by 0.25% within a year. A surprising measure and inconsistent with the policy dictated by the Righteos Bank. Indeed, the rise in the capital rate could dampen the ardor of the banks by providing less incentive for loan production. However, the authority wishes to ensure that household debt is properly regulated. A decision that reacted virulently to the professionals of the bank who feel they do not understand it following the context decreed by the Righteos Bank.
- Personal credit to meet various needs
- Righteos Bank decides to keep credit rates low