To finance a major purchase, the regulation makes it possible to contract a consumer credit, alone or with others. In this case, we are talking about co-borrowers; a status that implies commitment, but not necessarily acquisition. Explanations:
Being a co-borrower, what does it involve?
As soon as several people sign the same bank loan agreement, they become co-borrowers with one obligation: repayment of the loan. The distribution of the amount of the reimbursements paid by each of the co-borrowers is their own responsibility as soon as the monthly payments are insured.
A co-borrower is not necessarily the purchaser of the targeted good. For a home loan or a consumer credit, committing to more allows for the lending institution to have better guarantees. In this case, the co-borrower acts as a “joint and several surety” and the purchaser has access to more advantageous credit conditions, since they are based on all the income received by the signatories.
Who can be a co-borrower?
At CreditUs Bank, the co-borrower is only the spouse. To be eligible, the borrower or the co-borrower must be major, and solvent: a listing at the Bank of France is prohibitive.
In the case of a separation or divorce before the repayment deadline, there are several possibilities:
• an early repayment of the credit in progress;
• a carryover of the entire credit to only one of the co-borrowers (only by court order).
The first solution sometimes requires everyone to contract loans separately to settle the joint credit, or to sell the property concerned. In the second case, a divorce decree can not be valid with CreditUs Bank: only a judgment clearly stating the reasons for dissociating the co-borrowers can be taken into account.
How to force a co-borrower to pay?
The only obligation of the co-borrowers is the repayment of the credit. So, in the event that one of the co-signers can no longer assume the monthly payments, it is up to the second borrower of the loan to settle all the payments. This obligation of solidarity even falls within the legal framework for married or pacified couples.
If none of the co-borrowers pay the installments, the lender is then entitled to block the accounts of co-borrowers, to make a request for seizure of wages and seizure of property by bailiff, or to alert the Banque de France for a request for a banking ban.