Section 2: Credit consolidation

The information document shall be drawn up on a durable medium. It shall include, presented in a clear and legible manner in characters no smaller than the height of the size eight, the following information and particulars:
1° For each credit agreement being considered for consolidation, information relating to that agreement and the terms and conditions of its repayment:
a) The nature of the credit, the amount of the instalments, the amount of capital outstanding and the period stipulated in the agreement for repayment of this amount on the date the document is drawn up;
b) The date envisaged for early repayment;
c) An estimate of the amount required for this repayment, determined on the basis of the date mentioned in b ;
d) An estimate of the early repayment indemnity, determined on the basis of the amount referred to in c, if the contract provides for such an indemnity;
e) The arrangements for early repayment, including, where applicable, the contractual notice period;
f) Where applicable, the date by which notice must be given, depending on the date mentioned in b;
g) An estimate of the mortgage release costs that the borrower will have to pay if a release is required as a result of the transaction;
2° Where the purpose of the debt consolidation transaction is also to repay debts other than loans, a list of such debts together with, for each of them, the amount and the date on which it falls due;
3° A warning addressed to the borrower, adapted to his situation and covering the following points:
a) The borrower must continue to pay the monthly instalments due in respect of the loans being considered for consolidation until they have been effectively repaid;
b) The borrower must continue to pay the contributions due in respect of the insurance guaranteeing repayment of the loans being considered for consolidation until they have been effectively repaid, if the borrower has taken out such insurance;
c) After early repayment, the borrower will no longer benefit from any guarantees covering one or more of the loans involved in the debt consolidation;
d) After early repayment, the borrower will lose the benefit of any insurance guaranteeing repayment of one or more of the loans being considered for consolidation, as well as any cover that may be in place in this respect;
e) If the borrower takes out new insurance guaranteeing repayment of the proposed consolidation, the borrower may benefit from less contractual cover, in particular due to any changes in their personal situation or the existence of new waiting periods and new deductibles.
f) If the borrower takes out new insurance guaranteeing repayment of the proposed consolidation, the borrower may benefit from less contractual cover, in particular due to any changes in their personal situation or the existence of new waiting periods and new deductibles;
f) In the case of a revolving credit, the lender who grants the grouping transaction will be required to reimburse the original lender directly and, where the grouping transaction relates to the entire amount outstanding under this credit, the borrower may request cancellation by means of a letter signed by him/her, which the new lender will send to the original lender free of charge;h) Where the proposed consolidation includes one or more assigned loans, it will result in the borrower losing the right to obtain a guarantee from the seller that they will be repaid in the event of a judicial resolution or cancellation of the main contract as a result of the seller;
i) Where it includes one or more loans guaranteed by a surety agreement, early repayment of these loans may result in a loss of value on the sums to be returned to the borrower under this agreement, where the latter so provides;
j) The borrower will no longer benefit from any ancillary services or commercial advantages that may be linked to one or more loans that are the subject of the planned consolidation;
4° Information concerning the procedures for implementing and taking effect of the planned consolidation:
a) The steps to be taken by the lender granting the consolidation;
b) The steps to be taken by the borrower;
c) The date on which payments or direct debits for the instalments of the loans to be consolidated must be stopped, and the arrangements for stopping such payments or direct debits;
5° Information enabling the borrower to assess the economic impact of the proposed consolidation. This information is presented in accordance with the table appended to this code. If the consolidation results in an extension of the repayment period or an increase in the total cost of the credit, the lender or intermediary will indicate this to the borrower.