Loan redemption case studies
What are the reasons for a consolidation of credits refused?
The reasons that may lead to a rejection of a loan consolidation file :
- First of all, a refusal can be the result of a badly constituted file, that is to say if the supporting documents are incomplete, so it is difficult to justify the situation of the customers and their good solvency with the banks. Indeed, if the necessary documents and information are not made known, the study of the file can not take place. Many files are rejected because the applicant (s) can not provide the documents required by the lending institutions.
- May also result in a negative opinion, a false announcement of the financial situation (expenses and income) by the borrower (s) with the intermediary in banking operations and payment services (IOBSP is the broker) . For example, forgetting to declare a bank account where debts are debited have not justified. Indeed, this fault results directly from a refusal for cause and reason of false declaration.
- A re-debt file can also be rebuffed if the requested bank is an integral part of a group where the said plaintiff has credits in the course of payments and has already encountered financial incidents that have not been properly corrected.
- Odds may be denied if the bank considers that the gain from the restructuring of the loans is not sufficient to cover the expenses of borrowing (s). As in the example of a household that has a cumulative debt load of 1500 € / month, and after the buyback operation the monthly payment is 500 €, the reduction of the deadline is 1000 €, but if following the analysis of the current accounts of the applicant (s) the financial analyst in charge of the file becomes aware of a monthly total expenditure of 3000 €, then the refusal is imminent because despite the gain made, the transaction does not cover the usual expenses of the customer (s). It is missing 2000 € of expenses to be covered in addition to the credits collected, so the operation is negative (refused).
- And of course if the financial ratios of the customer file are out of specification after study. For example, the remainder to be lived per person (RAV) which corresponds to the sum of money per individual in the home after payment of the charges of credits or rents, but also of any other charge regarded as perennial.
- The post-operation debt ratio (PAC after) which can reach according to the offer of our buy-back product panel up to 50%. We are far from the fateful threshold of 33% practiced by conventional deposit banks (CreditCole or Credither, but also Crédit Mutual, etc.)
- A statement of financial position of the applicant (s) too degraded. We must not forget that the credit restructuring responds to the poorly indebted people, that is to say who despite their ability to repay sufficient to cope with a suitable repayment plan. When the bank accounts present a difficult budgetary management which results in many of the deductions of deduction related to the credits, then the inscription in the file of the repayments of credits to the individuals (FICP) of the Francia Bank due to default of payment is imminent. This is why the grouping of loans does not respond to people in debt distress.