- The consumer to opt out of the point of sale, a credit between depreciable or revolving debt,
- To reduce the time for repayment of revolving debt,
- Mandating unbinding between the profit benefits of loyalty cards linked to a revolving credit using credit.
If in everyday language this type of credit is called “permanent debt” or “revolving credit”, the only legally correct name today is “revolving debt”.
Revolving credit is a credit to consumption characterized by a specific system. Whenever you use your borrowed capital, says “cash reserve”, but it decreases gradually restored as you pay off your credit.
You can freely spend money at your disposal by requesting a check or transfer to your bank account, or by purchasing using a credit card backed by this debt.
Revolving debt is easy to use since you use your cash reserve as and when you need them for varying amounts within the limit of the maximum amount (or overdraft).
The revolving debt agreement is renewed every year by tacit agreement. However the lender must consult each annual renewal, the national register of incidents of loan repayments to individuals and must reassess the creditworthiness of the borrower every three years.
Attention! If you are not using your pool for at least two consecutive years, your credit agreement is automatically terminated.
The interest rate for this loan is higher than for conventional consumer credit and, if small installments available are attractive, they drive up the total cost of credit.
Advertising on a revolving debt
It shall contain, in referring to an interest rate or encrypted information on the cost of credit.
Pre-contractual Information Sheet
As to obtain all consumer credit, the borrower who wishes to enter into a revolving credit must compare different offers and must obtain, prior to contracting, an information sheet containing all the pre-information characteristics of credit.
The dialogue form
When the consumer enters into a revolving debt on a point of sale or through distance selling, from a lender or through a credit intermediary, he must complete a form called “dialogue” with elements related to expenses, income and, if necessary, lending it has. The borrower must sign this form that will be used to analyze its solvency. If the credit amount is greater than 3000 $, the elements contained in the safety data sheet must be supported by evidence.
In addition, when the credit agreement is reached on a point of sale or through distance selling and the amount of the credit is greater than 1 000 $, the seller must offer you the choice between depreciable credit (appropriation, personal loans) and revolving debt.