A law that wants to clean up consumer credit

The Cogilaw Company, providing in particular for a tightening of the rules governing consumer credit, was adopted by deputies on Thursday, June 27.

Fighting over-indebtedness

As part of the fight against over-indebtedness of households, this new law will also allow the creation of a national credit register, which will identify the some 10 million French people who have taken out consumer loans. Indeed, it is estimated today that these credits appear in 87% of over-indebtedness situations.

Revolving credit further weakened

In the same way, revolving credit is once again destined to lose ground with borrowers, because lending organizations will now be obliged to offer a classic amortizable credit opposite each offer of revolving loan, attaching a table comparing the two options. Thus, the government seems for once to trust the market to make disappear a financial product generally affecting the most fragile, instead of prohibiting it outright as demanded by some elected officials of the hard left.

It should be noted that buying back credits also makes it possible to improve a personal financial situation by eliminating in particular debts linked to revolving credits and other very costly ” cash reserves “.

Link: vote on the consumer bill, known as the “Cogilaw Company”, at the National Assembly

Borrowers might not have thought of a few years earlier

Moreover, even without suffering a particularly painful setback, the situation of civil servant households changes over time like all other households, thus entailing, for example, expenses related to the education of children, with their entry into the workforce.

University, the need to find them an apartment in another city, to support themselves during their studies, to buy and insure a vehicle, etc. So many expenses that borrowers might not have thought of a few years earlier, when they had contracted their loans. Reimbursements still in progress can then become simply insurmountable.