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Credit rights The Court of Cassation recently reaffirmed that a sale in installments, deferred or split payments is qualified as a consumer credit transaction , giving the buyer the right to exercise his right of withdrawal.
Consumer credit transaction and right of withdrawal: –
In one specific case, an individual had placed an order for bottles of wine with a winegrower during a fair. The agreed price was payable in six monthly installments after delivery of the wine. However, the customer did not make the purchase and was subsequently ordered to pay the outstanding monthly installments. The customer disputes this decision, alleging that he was denied the possibility of exercising his right of withdrawal. On July 3, 2013, the Court of Cassation ruled in favor of the client.
According to the Court, a sale accompanied by installment payments falls within the category of consumer credit transactions. Consequently, the buyer must benefit from a withdrawal period, whether the sale took place by canvassing or whether the customer signed the agreement on a trade show stand.
Consumer protection in terms of payment: –
It is important to note that by law, any payment arrangement, including loans, overdrafts or extended payment terms, is considered consumer credit unless it relates to sums of less than 200 euros or if it is carried out over a very short period without any costs.
This decision reaffirms the protection granted to consumers in transactions involving credit agreements. It ensures that consumers have the opportunity to reconsider their purchase and exercise their right of withdrawal when entering into such agreements. By qualifying installment sales as consumer credit transactions, the Court aims to safeguard the interests of purchasers and to promote fair and transparent practices in the market.
In summary, the Court of Cassation has clarified that a sale with installment, deferred or split payments is qualified as a consumer credit transaction, giving rise to a right to a withdrawal period. Regardless of the circumstances under which the sale took place, consumers have the right to exercise their right of withdrawal, thus contributing to a fairer and friendlier commercial environment.
