If you have late payments, the financial institution may use the forfeiture of benefit of the term clause, if it appears in your contract. This clause allows the institution to require that you pay your balance before the due date.

Written notice

In order to use this clause, the issuer must send you a written notice titled "Notice of forfeiture of benefit of the term." This notice must be sent along with a statement of account.

30-day deadline

Once you have received the notice, you have 30 days to pay the late instalments and the accumulated credit charges. During this 30-day period, you may also petition the court to have the payment terms changed.

To rule on whether or not this change can be made, the court takes the following points into account:

• the total amount you have to reimburse according to the contract;
• the amounts you have already paid;
• the amount you have left to pay;
• your ability to pay;
• the reason you have not been making your payments.

If you are unable to make your late payments within 30 days after receiving the notice and have not filed a petition with the court, the financial institution is then allowed to demand immediate payment of your balance owing, which means the entire amount you have left to pay.

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