Revocation of bank credit: everything you need to know

The bank credit line is a form of credit issued by the bank to the account holder for a specific period of time established contractually. Sometimes, it may happen that the reference bank, faced with a legitimate reason, decides to interrupt the granting of the credit line to its customer and, therefore, to revoke the bank credit.

According to article 1845 of the Civil Code , if the Bank is faced with valid reasons such as insolvency and unreliability, it can decide at any time to suspend the granting of the bank credit.

The revocation of the bank credit has consequences for the customer, which we will see in the following paragraphs and, in some situations, it can become illegitimate. In these cases, it is very important that the customer knows how to defend himself and knows how to exploit certain tools during a negotiation with his credit institution.

How does the revocation of the bank credit work?

If a bank immediately and without notice interrupts the bank credit line, we are faced with an illegitimate revocation and it is possible to rely on professionals to help the customer understand how the revocation of the bank credit works .

Any credit institution, in order to correctly revoke the bank credit line, must comply with the following terms:

• If the contract with the customer is for a fixed term, the bank cannot withdraw from the contract before the expiry of the term, except for just cause. The latter must be explicitly communicated by the will of withdrawal, in writing and with specific reasons, and must comply with a term of not less than 15 days in which the amount used must be returned, as specified by article 1845 of the civil code.
• If the opening of a credit or bank credit line is for an indefinite period, the credit line must be revalued annually with the possibility of being increased, decreased or revoked, and each of the two parties can withdraw from the contract, by giving notice within the term established during the negotiation. , which can vary from 1 to 15 days.

The sudden and arbitrary withdrawal is illegitimate because it violates the principles of correctness and good faith specified in articles 1175 and 1375 of the civil code. For this reason, during the stipulation of a bank credit line it is important to read the contract and avoid meeting clauses that allow the institution to withdraw from the banking relationship at any time and to request the immediate return of the sum of money.

Revocation of the bank credit: what the customer must do

In a situation of revocation of the bank credit, it is important that the customer relies on expert analysts able to verify whether valid reasons for withdrawal are lacking in the contracts stipulated with the bank. The analysts also evaluate the bank's behavior and any violation of the duties of fairness and diligence.

If the provision to revoke the bank credit is not unjustified, the customer can rely on lawyers capable of negotiating a second agreement with the credit institution, so as to arrive at an adequate proposal for a satisfactory repayment plan for both the customer both for the bank.

When there is a revocation of the bank credit, the customer faces effects caused by the failure to return the sums of money, which can be:

• Non-performing reporting to the Interbank Risk Center , which makes it impossible to access credit from other institutions, therefore the customer will not be able to request loans;
• An injunction from the credit institution to recover the sums entrusted;
• A precept and foreclosure on movable and real estate assets;
• In the most problematic cases, the customer can risk the bankruptcy of the company;
• Revocation of other lines of credit or mortgages already granted by other credit institutions.

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The article Revocation of bank credit: everything you need to know comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/revoca-del-fido-bancario-tutto-quello-che-ce-da-sapere/ on Tue, 16 Mar 2021 06:30:38 +0000.