No Credit Agreement

After signing, you must provide the borrower with a copy of the credit agreement – and all other documents to which it refers – unless it is identical to the one you have already submitted. In this case, you must inform them in writing that the agreement has been executed and that they can request an additional copy within 14 days. If the proceeds of the sale are not sufficient to settle the account, the creditor can go to court to recover the remaining balance owed. This applies to staggered contracts, secured credit or leasing. Surprisingly, there is no mortgage agreement on this list. This implies that the mortgage (a bank, usually) can only rely on the proceeds of the sale of the property to pay the account – even if that is not enough, and even if the Mortgagor (the debtor) is very rich and has other assets that could be added. Credit providers and credit bureaus were required to register with the NCR by July 28, 2006. Debtor advisors can register at any time. The consumer must also, upon request, tell the lender or sheriff the address of the goods, as well as the name and address of the owner of the premises. However, you cannot obtain or enforce a court order against you or enforce the agreement in any other way. This means that they cannot hire bailiffs, not lay charges against your property or be seized with a product order against you. They may threaten, but do nothing to get the payment.

If the creditor sends you a copy of your contract and statement of account statement at any time after the request, the creditor may initiate or sue you in order to recover the debt. Use this standard letter to obtain specific information about you that may be held by a creditor or a public organization such as your city council. Alternatively, you can check what information the lender holds about you (for example. B a recording of a phone call) and how he could use it to make decisions about you. This leaves open the question of what the lender can do. So what can a lender do if an agreement is not applicable? The first thing a borrower should remember is the difference between unenforceable and invalid agreements. An invalid credit contract simply has no effect, while an unenforceable agreement simply cannot be applied until certain measures have been taken. If an action is possible, it is considered temporarily unenforceable, but if no action is possible, it will be irrevocably unenforceable.

As we have seen, a lender is required to provide a copy of the credit contract.