Several types of companies offer loans in order to finance your holidays:
Banks can offer personal loans (with no spending justification) or revolving credits (permanently renewable). Find out more information on the credit rates, because for small expenses it is sometimes cheaper to negotiate an overdraft with your bank than a loan. Even though the overdraft rates are often higher than those on loans, they have no insurance or paper expenses.
Certain tour operators will subcontract with banks or loan and credit organisations for short term or revolving credit loans. The bigger tour operators have even created their own specialised holidays cards Profit from a payment deferment that can go up to around a month. For a monthly payment, check the total cost of the trip, because the rates are often high (frequently between 9 to 11%) even if the monthly payment may appear low. Additionally, some tour operators have their own credit system: monthly instalment and balance payments on return; or other kinds of credit loans. "Holiday saving plans" also exist : instalments + monthly payments debited until departure.
Some financial organisations also directly offer personal loans. They conserve the right to retract on a loan once they have checked your credit record for a seven day period after the contract's signature.
On a loan, the credit company can offer you an insurance policy in case you cannot repay the loan (decease, invalidity, unemployment...).
In case of bad services:
Even if the service provided is bad, you must not, in any case, interrupt your loan repayments. Only a judge can rule on the subject. In the case of a legal procedure against the selling agent, you must always inform your loan organisation of your legal action.
In the case of a cancelled contract or solved in court (for flaw or non performance of the seller's obligations), the loan contract is automatically cancelled (or settled) by the judge. The financial institution must return all payments you have made for the repayment, interest, opening and accessory expenses.
If the cancellation of the sales contract is due to the non-respect of the seller's obligation, he can be sentenced, on behalf of the lender, to the repayment of the loan. Moreover, the financial organisation and yourself can reclaim damages from the seller.
Trading Standards Institute (TSI), UK European Consumer Centre
1 Sylvan Court, Sylvan way, Southfields Business Park, Basildon, Essex SS 15 6TH. 08456 040503 On the Internet: http://www.ukecc.net/.
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