Paiement en plusieurs fois - pourquoi l’éviter EN-GB

PAYMENT IN INSTALMENTS IS BECOMING MORE POPULAR IN FRANCE.
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PRACTICAL - Convenient for some individuals, payment in instalments (or split payment) can be dangerous for others. This is why.

Giving clients the possibility of paying in instalments, often in three or four, split payment is increasingly used in France. According to the latest OpinionWay - Floa Barometer on "The French and the evolution of payment methods" (published in June 2021), the French were nearly a third to have recently used payment in several instalments. Indeed, 31% of respondents in April of that year said they had made a split payment in the last twelve months, compared to 25% a year earlier.

Why can payment in instalments be a problem?

Split payment can be used to better manage users’ budget. In fact, it is quite popular according to the Barometer by 79% of users who say they plan to pay again in several instalments in the coming months. This tool allows some consumers to spread out their payments giving a break to their cash. The problem, though is that not all individuals are necessarily able to control their expenses, and payment in instalments being spread out, can sometimes encourage them to overconsume.

Announcing 5 million French customers each year, Oney offers for example to pay in several instalments on more than 13 000 e-commerce sites and partner stores belonging to very different sectors (including several major brands), and for purchases of up to 2,500 pounds. Sometimes, some brands even allow you to make payments of over 8,000 pounds in several times. In these times of record inflation, there is a risk for people overconsuming without having the capacity to pay back and without taking into consideration interest and financial consequences.

Split payment, a disguised consumer credit?

Sometimes causing a fee, the split payment can be likened to an instant mini credit. However, it is not considered as a consumer credit by French legislation, because, unlike the latter, it lasts in principle less than three months. While the law stipulates that the granting of a consumer credit must be accompanied by a check of the creditworthiness of the borrower, this is not the case during a payment in several instalments.

A disproportionate recourse to split payment by the individual can therefore cause situations of over-indebtedness, in which the credit institution has the right to request the intervention of a bailiff, and even the seizure of real estate. To avoid getting to this point, payment in instalments will have to be regulated by the European Union in the coming months. Currently under discussion, the adoption of a European directive on the issue is hoped by its instigators around the beginning of September.

(By the editorial staff of the hREF agency)