Over-indebtedness: Law wants to “avoid too much credit”

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Problem of over- indebtedness

Problem of over- indebtedness

“The excess credit is when a credit which is supposed to allow you to make a purchase, of a piece of furniture, of a hi-fi equipment, is not used for this purchase but to settle your invoices. But when you have 5, 6, 7 consumer credits you fall into the spiral of over-indebtedness.

The Minister of Social and Solidarity Economy Bank has said this: he wants to tackle the problem of over- indebtedness head-on. Its law on consumption voted definitively yesterday in Parliament thus includes a section dedicated to this “scourge” with the creation of a national register of loans to individuals (RNCP).

The principle 

This register, which will be created as soon as the law is promulgated, will list all the credits of individuals as well as their possible payment difficulties. All credit organizations will have access to it and will be required to consult it to judge the creditworthiness of a customer before granting a loan.

” This is real progress,” says Best credit company, spokesperson for Good Bank, “today when taking out consumer credit, the lending organization can only base itself on the faith of borrower’s statements. Now it is true that in critical situations he can more or less voluntarily omit to mention that he already has several credits  for this purchase but to settle your invoices”.

Make the lender responsible, not just the borrower

Make the lender responsible, not just the borrower

“The lender will now base its decision on the data transmitted by the RNCP. He will therefore have an objectified photograph of the loans already outstanding for the borrower. This information will allow him to better assess the risks of the case. He can thus refuse the credit likely to make him fall into over-indebtedness ”underlines the bill.

And if a credit organization decides to grant a loan to a household that was actually unable to repay it, it will be held responsible in the eyes of the Best Bank. “You have to make the lender responsible, not just the borrower. “Concluded Bank to defend his project