Loans ContractOf great flexibility, apparently without constraint, the cash reserve is not less credit: the signing of a contract is binding. Should be aware of the weight of its terms and think carefully before signing.


The revolving debt contract


As with any consumer credit, opening a cash reserve, you will sign a credit agreement. The initial offer must include the characteristics of credit, including the maximum amount of credit conditions and the cost of any insurance. Most offers of cash reserve displays the mention of APR, which includes in addition to the nominal rate charged, fees, and insurance and warranty costs. The borrower has a cooling off period of 15 days to study the terms of the contract and a withdrawal period of seven days after the first loan offer signed.


Modification and termination


The contract period is generally one year, renewable annually. You are warned three months before the deadline, the conditions for renewal. You have the right to refuse any changes by returning up to 20 days before the effective date of the reply slip attached to the document changes. And if you agree to these new conditions, then you must repay the previous conditions, all amounts due. You cannot use the cash reserve.

If there is increase your credit limit, the lender must give you a preliminary offer of credit. You can request a reduction of the ceiling of your credit.

You have also, and most of the time, the ability to transform your conventional loan reserve an amount equal to the outstanding amount. Your credit will end with the payment of the last installment.

Finally it should be noted that inactive account for 3 years will be automatically terminated. The bank or lender must ask in writing if you still want to renew the contract of credit. All features of the contract will be recalled in this post. If you want to keep the cash reserve, you must return this document signed and dated no later than 20 days before the contract expiry date.