Limitation period in case of unpaid consumer credit loan
What is the limitation period for an unpaid consumer credit?
All that concerns the prescription period of consumer credit is governed by Article L.110-4 of the French Commercial Code. Prior to the 2008 reform, the limitation period for an unpaid consumer credit was thirty years.
The new law has reduced this period to only five years to protect consumers. It should be noted that the prescription of traders, which was fixed at ten years, was also reduced to a period of five years.
Limitation period of a consumer credit in the event of judgment
When a judgment is rendered condemning the borrower to pay his debt and the latter has moved in the meantime, the limitation period of a consumer credit is not the same . In this case, it is no longer a debt of credit , but a debt of judgment . The limitation period at this time is ten years , compared to thirty years before the 2008 reform.
Collection companies are entitled to rely on these judgments to claim payment within the new deadlines.
How to defend yourself when the prescription period of consumer credit has passed?
When we want to defend against a claim for reimbursement and the limitation period of the unpaid consumer credit has passed, we must rely on the law.
As a first step, the borrower must ask the collection company if it has a judgment and ask for a copy.
Note that if there is no judgment, the borrower can oppose Article L.311-37 of the Consumer Code if there is more than two years since the first incident of payment.
On the other hand, if there is a judgment , it is necessary to pay attention to the date on which it was made and if the meaning was indeed made in the six months which followed the judgment. If all the conditions are met, then the borrower will have to repay the rest of his debt . It is possible to obtain payment terms by contacting the Execution Judge directly.
Read also Consumer credit: avoid over-indebtedness
What is the reaction time before the lapse of the limitation period of an unpaid consumer credit?
Regardless of the prescriptive period of consumer credit , credit companies must pay attention to certain rules if they want a chance to be reimbursed. If, in default of judgment, the latter do not act within two years of the first payment incident , they have no chance of being reimbursed . Only an acknowledgment of debt could allow it, so we must pay attention to what we sign.