Can overdrafts be included in the loan buyback?

Posted on June 21, 2020
credit redemption and bank opening

Faced with various financial commitments, are you having difficulty managing your current account? Do you ever have a bank overdraft from accumulating household expenses? In such situations, it becomes difficult to go up the slope to find a stable financial situation. So, can a repurchase of credit be possible in the event of a bank overdraft?

Credit repurchase and bank overdraft: points to know

First of all, it must be recognized that the repurchase of credit is a solution initially offered to debtors who have taken out several loans in the bank and who have difficulty managing the payment of monthly payments. The repurchase of credit is mainly intended for the consolidation of bank loans. As for the overdraft, it is a negative current account balance, due to withdrawals from an account that does not have enough funds.

As such, a distinction must be made between authorized overdraft and unauthorized overdraft. In the first case, the bank gave its customer the option of withdrawing money from his unsupported account, subject to conditions. Conversely, an unauthorized overdraft is an overdraft made without the consent of the bank. Such is the case of an unpaid check which is liable to penalties and of filing with the FCC, the central check file. In what situations can the overdraft integrate a loan repurchase? Let's find out the answers.

Are overdrafts allowed in the repurchase of credit?

The law specifies that the overdraft can always be the subject of a repurchase of credit whether authorized or not. Indeed, the legislation considers the bank overdraft as a consumer loan without proof , which is why it can be part of the credit buyback operation. This is because an individual continues to withdraw from his overdraft account. He therefore borrows the bank's funds to be able to finance his needs.

The repurchase of loans or consolidation of credits makes it possible to collect several loans. The overdraft being assimilated to a consumer loan, it can be included in the banking transaction. In order to know if an operation is possible, it may be interesting to call on a credit redemption specialist. This professional can provide all the appropriate answers.