Debt transfer – can it be done without the debtor’s consent?

A company other than the one with which the customer has concluded a contract may apply for payment for the services or goods purchased. In this situation, he should not panic, but calmly read the letter from which this information arises.

Everything indicates that the company (e.g. selling in installments, telecommunications, media provider) has transferred its claim to another entity. She did not have to consult this with the client, because the regulations allow the transfer of claims without obtaining the consent of the debtor.

A transfer of debt to another entity is not unlawful

A transfer of debt to another entity is not unlawful

It is called transfer of receivables ( cession is popularly referred to) and is regulated by the Civil Code. Companies are eager to use this solution – especially when the debt is difficult to collect because the customer does not want to pay or pays, but with a delay.

The company does not have to inform the debtor about the intention to transfer the liability to any third party. The rule is that it can always do so if the contract does not explicitly stipulate the ban on transfer (there are two other exceptions, but in practice, they are much less important).

If the person concluding the contract does not want his obligations to be sold, he should ensure that the contract contains a provision prohibiting the change of the creditor. This, however, may not be feasible: most consumer contracts are concluded on ready-made forms prepared by the company and it simply states that the claim may be disposed of or there is no word about it, which automatically means that the transfer is acceptable.

Of course, the terms of the contract can be negotiated and changes can be made to the printout, but in practice this is unlikely. The client would have to have a very strong negotiating position to bring about changes.

How do you know about the transfer?

Let’s discuss it with the example of a person who bought electronic equipment in installments and stopped repaying them at some point. The company operating the installment system may claim payment on its own, but may also transfer the claim to another entity; most likely choose a company specializing in debt collection.

As has been said, he does not have to warn the debtor of his intention, but at the same time, until he notifies him of the transfer, the debtor has the right to pay to the account of the current creditor (seller), who will have to settle with the new creditor (buyer). This is a beneficial solution for the debtor because the debtor should not have the task of knowing if his debt has not been transferred to any other company.

Let’s return to the example of an electronic equipment buyer whose debt has been transferred to another company. Who should the customer submit their purchase claims to (e.g. equipment has stopped working and the buyer wants to exercise his rights under the warranty or statutory rights, i.e. non-compliance of the goods with the contract) – to the seller or buyer of the claim?

In accordance with art. 513 § 1 of the Civil Code, the debtor is entitled to the purchaser of any claims that he had against the original creditor. Therefore, it will be him who will direct the request to repair the equipment or replace it with another one. This is an important regulation, because no matter whose benefit the debtor should pay (and for what reason the assignment occurred), he cannot be harmed as a result of decisions taken independently of him.

When it is not known who the creditor is

money

Finally, one more possible situation. Imagine a debtor who did not pay his debts for a long time, e.g. he did not pay the subscription or shopping installments. When he finally decided to settle the debt, he called the creditor and asked to calculate the debt.

He obtained information that his claim was transferred, but the consultant is unable (he does not want to say, he does not know – it does not matter) to tell him who the creditor is now and what is the sum of the debt. Our debtor was advised to wait for a new creditor to contact him.

This is a very bad solution to the problem. We remind you that until the current creditor informs the debtor about the transfer of the claim, he has the right to perform the benefit on behalf of the company with which the debt arose. If he postpones the payment, the final debt will increase, because everyday interest is added.

The debtor in the example above should, therefore, pay for the invoice to which he has previously made payments. If he does not know how much he owes, he should pay as much as he estimates the debt, he will pay the rest when he is contacted by a new creditor.

Credit insurance: why take one?

A loan often represents a large sum to be repaid. The mortgage, in particular, spans several years, and in this period an accident can happen. In the event of loss of income, disability or death of the borrower, how to repay the credit? This is where insurance comes in, which aims to protect the policyholder and his family, as well as the lending institution. It is strongly advised to subscribe to it when borrowing a large sum.

 

The usefulness of credit-linked insurance

The usefulness of credit-linked insurance

Insurance is not a legal obligation, that is, the law does not oblige citizens to take out insurance with credit. However, banks and lending institutions may require it in the case of a mortgage. This type of loan, generally intended to finance a real estate project (acquisition or renovation of housing), often represents a substantial amount and is spread over ten years or more.

This is the reason why it is important to take out insurance, which will be used to pay off the credit in case you find yourself unable to do so. Of course, the bank can seize the mortgage to repay part of the credit, but this will seriously damage the borrower and his relatives. Thanks to insurance, it is possible to keep the property.

Concretely, insurance in addition to credit protects:

  • The insured: reimbursement continues despite loss of income;
  • Relatives of the insured (heirs, cohabiting spouse): they do not inherit the borrower’s debts;
  • The lender, who is repaid despite the inability of the borrower to discharge his debts.

Note that insurance in the context of a mortgage loan can give rise to tax deductions, subject to certain conditions:

  • Insurance is taken out before age 60 for women and age 65 for men;
  • The insured borrowers and recipients are restricted to relatives up to 2nd degree or spouse who lived with the insured;
  • The duration of the credit must be equal to or greater than 10 years;
  • The insured amount is equal to or greater than the capital borrowed.

 

Types of insurance for a mortgage

Types of insurance for a mortgage

There are two main insurances, which cover reimbursement according to the risks encountered.

Balance outstanding insurance

It ensures the repayment of the unpaid remains of the loan in the event of the death of the borrower. In this way, his heirs will not inherit his debts, and the lending institution is sure to receive his due. This insurance can be purchased from the bank that provided the loan or an insurer recommended by the establishment, this gives you the opportunity to negotiate a better loan rate. It is also possible to take out outstanding balance insurance with a third-party company, through competition.

Loss of income insurance

It reimburses the loan during a period of loss of income (eg involuntary job loss, illness or disability). The insurer will pay your monthly payments until you are able to do so again, according to the terms of the contract. You can subscribe to this type of insurance with a third company, or with the public authorities.

In the Walloon region, you can benefit from a credit repayment for a maximum of 3 years, up to $ 6,200 per year under conditions. The insurance must be taken out within 6 months of obtaining the credit, and covers job losses that occur in the first 8 years of the credit.

 

Taking out credit insurance

Taking out credit insurance

To take out insurance in addition to a loan, the following conditions must be met:

  • The duration of the insurance and that of the linked loan are the same (for a 12-year mortgage, short-term insurance for 12 years);
  • Establish a minimum amount to be insured;
  • Perform a health exam to determine the risks.

It is possible to pay a single premium for insurance, or to opt for an annual premium. The amount of the premium is calculated according to the age and state of health of the borrower, as well as the amount, duration and interest rate of the loan.

Apply the lightning credit instant payout now.

 

Who does not know that ? Because you think that you have all finances under control and an unexpected invoice or repair comes. The money that you may have put aside is often not enough. For example, some have to take out a loan so that the financial situation can relax.

How do you get an instant credit with instant disbursement?

How do you get an instant credit with instant disbursement?

For some customers, the conversation at the bank is already an obstacle that can hardly be overcome. The customer is put through its paces, so to speak. This means nothing other than that the bank will check whether the customer is able to provide a monthly installment. The salary for a lightning credit with immediate disbursement is crucial, because the credit line is based on this. If the income is high enough, no collateral is often required and the credit line can be set high.

However, the situation is very different for low-income earners or customers with poor credit ratings. Here banks often require collateral and the loan will be in the form of a small loan. The bank works with collateral so that the loan can be paid without any problems. If you do not have this security, you will try in vain to get a loan.

Customers who have no income at all and are now dependent on the help of the state do not even have to start trying to apply. These people do not get credit. This is because banks are not allowed to seize the customer’s social benefits in the event of a loan default. That would mean that the borrowed money could not be claimed back.

Find and use alternatives

Find and use alternatives

Anyone who cannot get a lightning credit with immediate payment from a savings bank or bank due to a lack of collateral or poor creditworthiness must look for alternatives. These are not always easy to find, but they do exist. A look at the Internet is often enough to find a provider that grants a lightning credit with an immediate payment.

The customer must also have an income here. If this is not sufficient, there will be a small loan amount. Private lenders in particular, who cannot check the Credit Bureau, grant a loan in such cases. The customer will quickly realize that borrowing is not cheap. This is due to the risk that the lender takes, because he has no options to check the creditworthiness using the Credit Bureau. So the interest on both loans is higher than at a bank.

If you don’t get an installment loan from your bank, you can try to get a overdraft facility. This is set up immediately so that the overdraft facility is immediately available to the customer. However, this loan should always be taken when there are really difficulties. The overdraft facility is very expensive. Although banks now offer overdraft facilities with little or no interest, the customer has to repay the loan within a certain time. This is not very easy for everyone. If interest rates are estimated, the customer is quickly in a debt trap from which he cannot get out quickly.