You have taken out a credit for your car and you end up with a lot of paperwork following this transaction. These documents are extremely important and we will have to keep them, even after having fully repaid the credit!
So what are the documents to keep during and after the credit? Why do we have to keep them? And for how long after the end of repayment? We explain everything in this little complete guide.
What are the documents inherent to a car loan?
When you buy a car loan, the financing organization, whether it’s an independent credit organization or your bank, provides you with a sometimes impressive amount of documents that all matter: loan agreement, amortization schedule, general conditions , special conditions, insurance …
To this, it is advisable to add the account statements of your bank on which appear the monthly payments of the credit, and / or the stubs of checks in case of payment by check …
All these documents must be perfectly well preserved throughout the duration of the credit, and even after the last repayment of it.
– The loan contract : this is a generic agreement for which the lender (organization or bank) agrees to lend a certain amount of money to the borrower at a given date and under given conditions. The signatures of both parties on the contract are essential.
– Amortization table : this is a double entry financial table, drawn up by the lender, showing the number of monthly payments corresponding to the duration of the credit, the dates of these monthly payments, the amortized capital, the interest (monthly and cumulative), insurance and capital remaining due month after month. This table allows the borrower to know where he is as his repayment progresses.
– The general conditions of the loan : this contractual document specifies the clauses of the transaction (management methods, guarantees, duration of the commitment, conditions of remittance of funds, failures of reimbursement, etc.).
– The particular conditions of the loan : this contractual document specifies the specific rules of the transaction (type of credit, rate, duration, identity of the subscriber and the beneficiary, scope of the guarantees, premiums, etc.).
– Loan insurance : they are optional but highly recommended because they cover the risks related to death or disability that may occur during the term of the loan.
– Statements of account : these are the ones on which appear the monthly payments of the credit which it is important to preserve (Even if, today, it is quite easy to obtain duplicates near his bank!).
– Check stubs : these are the ones concerning the payment of the monthly installments of the credit which must be preserved, as well as the statements on which appear these checks.
Why keep all these documents?
All these documents are very important and should be kept for the duration of the credit . In fact, in case of problems (change of situation, non-payment of monthly payments, repurchase of credit, claims, …), they are valuable proof of repayment if they are claimed.
Reminder letters should also be retained in the case of non-payment of a monthly payment.
All these documents can be requested at any time by your credit organization, your bank, your lawyer (in case of dispute), or by the court …
They are official proof of any claim, redemption of credits, or any other change of situation that occurred during the course of the loan.
How long do these documents need to be kept?
The law requires keeping them for the duration of the loan, but also at least 2 years after the repayment of the last monthly payment . Indeed, if problems occur towards the end of the credit, it is necessary to be able to prove the refunds made, even months after the deadline.
For example, if your credit car lasts 5 years, it is strongly advised to keep all the documents inherent to this loan for 7 years minimum.
To conclude, keeping all the documents relating to a car loan may seem to be a constraint, but this is important because, if you are worried, you will always have at hand all the evidence necessary for the progress of the proceedings, whatever they may be. , and it will save you a lot of trouble!