New technologies now allow online commerce at all levels of goods and services consumption. What about credit? If you need a cash reserve, do you necessarily have to go to the lender’s offices, or can you apply for credit remotely? Let’s take a look at this contractual operation, which is very trendy today.
Remote credit contract = traditional credit contract
The law shows some flexibility. Indeed, it equates a remote contract involving a financial service, such as granting credit, to a traditional credit contract. Thus, you can choose to conclude a credit contract by phone, internet, or SMS. However, in this case, the lender must strictly adhere to their duties of investigation, information, and advice to consumers.
Consumer information and advice for concluding a credit contract
First, the lender must inform you in a timely manner, that is, before the conclusion of the credit contract, about four fundamental elements: the identity of the service provider, the characteristics of the proposed credit, the content of the remote contract, and the possibilities of recourse in case of dispute.
This communication must be done by a means adapted to the remote communication technique used, for example, an email. However, if technical reasons prevent the communication of this information before the conclusion of the contract, the law allows their transmission immediately after the conclusion of the credit contract.
Moreover, a simplified information regime applies if you conclude a credit contract via a voice communication system, such as the phone. However, this regime only applies if you give your formal consent.
Furthermore, the lender must assess your solvency and evaluate the appropriateness of granting you credit. They must also provide you, in writing or on any durable medium, with the “European Standardized Information on Consumer Credit” (SECCI) form. This document allows you to more easily compare different credit offers and make an informed decision.
Additionally, you can also request to obtain the draft of your credit contract before signing. The signature can be done electronically, if applicable.
Right of withdrawal
Be aware that you have a period of at least 14 calendar days to withdraw from the remote contract involving a financial service. This right is exercised without penalties and without the need to provide a reason.
To exercise this right, the period begins to run:
- Either from the day the remote contract is concluded.
- Or from the day you receive the contractual terms and the information mentioned above, if this date is later than the conclusion of the contract.
The period is considered respected if the notification, provided it is made in writing or on a durable medium at your disposal, is sent before the expiration of the 14-day period.
Finally, during this withdrawal period, the execution of the contract can only begin after your express agreement.
Burden of proof
Finally, it is up to the lender to prove that they have fulfilled their obligations regarding consumer information, compliance with deadlines, consumer consent to the conclusion of the contract, and, if applicable, its execution during the withdrawal period.