Former revolving credit, the revolving credit allows borrowers to benefit from a reserve of funds, the amount of which is determined by the contract, unlimited. When they no longer want to use it, there are several ways to close a revolving credit.
Closing the revolving credit at any time
The code of consumption provides all the terms and conditions to close a revolving credit. The Châtel law of January 2005 thus improved the conditions for closing the revolving loan. The borrower who has taken out this type of loan may, at any time, reduce his credit reserve, suspend his right to use it, but also terminate his contract.
In the latter case, the borrower is obliged, according to the terms of the contract he has signed, to repay all the funds in the reserve already used.
Note: It is also possible to convert the revolving credit into conventional credit at the annual renewal, which allows to have a known end date of repayment.
Closing a revolving credit on the anniversary date
Three months before the anniversary date of the revolving credit, the lender is obliged to send a document to the borrower specifying the terms of the revolving credit, the conditions in case of renewal and the terms of termination.
After receipt of this document, the borrower must close its revolving credit no later than twenty days before the date of automatic renewal and refund the funds already used, and under the conditions defined by the first contract.
Closure of the revolving credit by the credit institution
Closing of the revolving credit can also be done by the lender, whether it is a bank or a consumer credit institution.
The organization begins by suspending the loan contract if the credit reserve or credit card has not been used for a year.
In this case, the lender asks the borrower if he wishes to terminate the contract and sends a document specifying in particular the nature of the operation, the amount of funds available, the APR or annual percentage rate of charge, as well as the amount refunds. If the latter is not returned signed and dated, at the latest twenty days before the due date, the contract is suspended.
Without reactivation on the part of the borrower, the closing of the revolving credit is then effective one year after the suspension.
Right of withdrawal to close a revolving credit
As with all consumer loans, the consumer code defines a right of withdrawal applicable by all, without justification or reason. Thus, since May 1, 2011, the law n ° 2010-737 of July 1, 2010, the borrowers have fourteen working days, from the acceptance of the offer of the revolving credit by registered letter with acknowledgment of receipt, for retract and thus close the revolving credit contracted.