Current loans: how to change the bank?

Only 4% of the French have changed banks in 2021 using banking mobility scheme provided for in the Macron law of 2017, according to a poll&roll survey for the online comparator Panobanques, cited by Le Parisien. In addition, only 35% of those who changed banks used the device. Results for the moment disappointing for this law, but not necessarily surprising since the legislative text only concerns the current accounts of individuals. The various loans of the latter, whether real estate loans or consumer loans, are therefore not automatically transferable.

Change banks with an outstanding loan using the Macron law

Despite the fact that the banking mobility scheme of the Macron law does not allow the easy transfer of all their accounts and loans to another bank, it is still possible to use it to change establishments with a loan. An individual can, for example, transfer his current account to a new bank, possibly open savings products there, and leave his mortgage in his initial bank. Indeed, the Pact law of May 22, 2019 repealed the obligation to deposit income in a bank to obtain a mortgage. For consumer loans, obtaining is much easier since credit organizations do not condition the granting of a loan to the opening of an account.

Another solution can be to use the banking mobility system and prepay your loan(s). This early repayment cannot be refused to the applicant if it allows the liquidation of a loan (article L313-47 of the Consumer Code), but it can instead generate early repayment expenses. An early repayment allowance (IRA) is actually included in most mortgage contracts, and penalties are expected for consumer loans. Costs to be expected, but which are limited by French legislation to protect individuals.

Exchange your current loan to your new bank

Individuals have the option to change banks, regardless of whether or not they decide to use the banking mobility system provided by the Macron law. If they have an outstanding loan, they can ask their new establishment to buy it back, which is not always easy. Banks in principle want to keep their outstanding loans, because they represent a source of income through the monthly repayments made by customers in their portfolio. They can therefore refuse the ransom request, and without having to justify it.

For his part, an individual who requests a loan recovery can hope to obtain a lower interest rate and/or a lower cost of loan insurance. If the new bank offers a credit recovery under conditions that suit the old bank and the individual, the deal is more easily sealed. The new financial institution will sometimes ruffle a few feathers, but it will win a new customer. In addition, the abrogation by Pacte law of the obligation of domiciliation of income in a bank to obtain a mortgage also allows establishments to be freer in terms of commercial negotiation. Thus, a bank has the right to offer now a potential new customer benefit in relation to the recovery of a loan, such as an advantageous interest rate or the elimination of costs (prepayment cost, administration fees , etc.).

Changing banks with an exceptional loan: the solution of credit consolidation?

In accordance with loan recovery, the grouping of credits consists, for an individual, of recovering all their current loans from a new financial institution (bank, credit organization). A person who wants to change banks with many outstanding loans can therefore use this solution. The grouping of credits allows the individual to have all their loans gathered in a single repayable loan via a single monthly payment, which clarifies their financial situation.

However, it should always be kept in mind that Credit consolidation has two advantages and disadvantages. If the new monthly payment obtained can be less than the amount of all past monthly payments, the loan period is in principle extended and the costs can also be provided. The person who wanted to use a credit pool to change banks with a pending loan must therefore be sure that this banking operation will not put them in financial danger and that they will be able to continue repaying.

(From the editorial office of the hREF agency)

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