Free consumer credit and cash facility

Verified 05 December 2025 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

Need to make an unexpected purchase? Maybe you can benefit from a payment in installments without charge. Depending on the repayment period, this is a cash-out facility (less than 3 months) or free consumer credit (more than 3 months). We present you the information to know.

Payment in installments without charge may take 2 shapes : the cash-out facility or the free consumer credit. These 2 solutions allow to spread a purchase without interest, but the level of protection consumer differs.

  • The cash-out facility, used for a refund of up to 3 months, is not subject to the rules of consumer credit: it may include fees, does not require a credit check, does not require the submission of a written offer and does not automatically give the right to withdraw.
  • Conversely, free consumer credit, offered for more than 3 months, is strictly regulated. The trader cannot increase the price of the product to compensate for the absence of interest, but a handling fee may be provided. It must also provide all mandatory pre-contractual information.

Free consumer credit

Free consumer credit is subject to the rules applicable to consumer credit.

Free consumer credit is a interest-free credit, which allows you to pay for a purchase in installments without financial costs.

Example :

If you buy a product at €500 and that the merchant offers a payment in 5 times without charge, you will pay €100 per month for 5 months, i.e €500 in total.

The merchant or his financial partner bears the cost of the credit, corresponding to the interest that would have been applied if you had taken out a conventional loan.

However, they may ask you for application fee for the introduction of free consumer credit.

The professional cannot :

  • charge you interest or increase the price to compensate for the absence of interest,
  • sell the product at a price higher than the lowest price in the last 30 days before your purchase.

The actual cost of the credit (interest not charged) is borne by the merchant or its financial partner.

Advertising the offer must be clear who pays for this cost.

The merchant who offers a payment in several installments without charge does not have to give you a discount if you pay in cash.

But he can do it. In this case, this information must be clearly indicated on advertising media that present the offer of payment in several installments without charge, so that you can compare the 2 options in complete transparency.

Verifying your creditworthiness

The bank or credit institution shall check if you have the financial capacity to repay the monthly installments of the credit.

This check is done first by comparing your income and your mandatory expenses (rent or monthly mortgage, heating, electricity, water, food, repayment of consumer credits,...). This allows the bank to know how much of your income remains available after you have paid your mandatory expenses.

Then the bank must consult the National Individual Credit Reimbursement Incident File (PCIF) to check if you have ever had difficulty repaying other credits in the past or if you have ever issued checks without provisions.

Delivery of a pre-contractual information sheet

If the merchant or its financial partner believes that you meet the solvency requirements and they want to grant you the loan, they must give you a pre-contractual information sheet.

Before signing the contractHowever, the lender (i.e. the bank or credit institution) must provide you with the information that will allow you to know whether the credit is suitable for your needs and financial situation.

The lender must mandatory provide you with a pre-contractual information sheet that includes the following:

  • Identity and address of the lender
  • Type of credit
  • Amount of credit and conditions for making available the amount borrowed
  • Duration of the contract, number and schedule of refunds (per month, every 2 months...)
  • Total amount due
  • Total cost of fees, expressed as a specific amount
  • Annual percentage rate of charge (APR) (except in case of lease with purchase option), with explanations on how this rate is calculated (expressed as a percentage of the amount borrowed)
  • Compensation to be paid in the event of late payment
  • Existence of a withdrawal period (you have 14 calendar days to waive your credit after signing the contract)
  • Articles of the Consumer Code on the period of validity of the offer and on the minimum reflection period
  • Your right to obtain, upon request and free of charge, a copy of the credit agreement offer
  • In the case of an appropriated appropriation, the asset or the provision of services financed.

The pre-contractual information sheet can also be used to compare the credit offered by the merchant to other credit proposals.

Issuance of a written offer

After you have received the pre-contractual information sheet, the bank or financial institution must send you a written loan offer.

The bank must leave you a period of 15 clear days to sign the loan offer.

If you sign the loan offer within this period, it becomes your contract.

The contract must include a clause that notifies you that you have a right of withdrawal that you can exercise within 14 years calendar days after signing.

Please note

If you take a credit that is not free at the same time as the free credit from the same organization, there must be 2 separate contracts.

You have the right to waive to free consumer credit after the signature of the offer, as is the case for all consumer credits.

You must send a letter of termination to the lending organization in the 14 calendar days which follow the signature.

The cancelation letter must be sent by registered mail with acknowledgement of receipt.

You can use a template:

Letter of withdrawal of an assigned credit

If you sign and withdraw within this period, the sales contract related to the credit is automatically canceled.

Cash Facility

The checkout facility is a installment payment of a duration not exceeding 3 months. It can be free or paid.

There is no mandatory rule: it is the merchant and his financial partner who decide whether or not to add interest and/or fees to the selling price.

Example :

If you buy a product at €300 and that the merchant gives you the opportunity to pay by 3 times free of charge, you will make refunds of €100 per month for 3 months. You will have paid in total €300 over three months.

If you buy a product at €300 and that the merchant gives you the opportunity to pay by 3 times with fees from €30, you will make refunds of €110 per month for 3 months. You will have paid in total €330 over three months.

The actual cost of the credit (interest not charged) is borne by the merchant or its financial partner.

Advertising of the offer must clearly specify who bears this cost.

The merchant who offers a payment in several installments without charge does not have to give you a discount if you pay in cash.

But he can do it. In this case, this information must be clearly indicated in its advertising media.

Unlike free consumer credit, there is no such thing no formal obligation for the merchant or its financial partner. This means in particular that they are not not obligated proceed with the following steps:

  • Review your creditworthiness
  • Provide you with a pre-contractual information sheet
  • Provide you with a written offer with a waiting period
  • Inform you of the existence of a right of withdrawal.

Where the sale has been concluded with a cash facility, the protection provided by consumer credit law does not apply. The right of withdrawal or termination then depends on the type of sales contract (store sale, distance selling,...).

If the contract provides for a right of withdrawal or if the sale was made remotely, you can possibly exercise it.

Otherwise, there is no automatic guarantee of withdrawal linked to the cash-out facility.

Who can help me?

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  • 0809 540 550 DGCCRF - ConsoResponse

    Are you having a problem following a purchase? Do you have a question about a point of law before buying or ordering?

    You can get an answer from an agent of the DGCCRF: titleContent by calling the 0809,540,550.

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