Credit law in the day-to-day work of our firm
Every day, our firm handles disputes relating to bank credit transactions. Whether it's a matter of miscalculating the overall effective rate, accelerating credit without formal notice, disproportionate guarantees or unfair terms in a loan agreement, these situations require a precise understanding of the French Consumer Code and the case law of the Cour de cassation.
There are three areas of credit law in which our lawyers are involved: the mortgage loanthe consumer credit and the equity financing. Each case is governed by its own rules on borrower protection, deadlines and remedies. Our team of banking and finance lawyers assists individuals and businesses with all these disputes.
Legal focus - The founding texts
Credit law is governed mainly by the French Consumer Code: articles L. 311-1 et seq. for consumer credit and articles L. 312-1 et seq. for home loans. The annual percentage rate of charge must be included in all offers of credit (article L. 314-5). If it is omitted or miscalculated, the lender may forfeit the right to contractual interest. The interest rate must not exceed the usury rate set quarterly by the Banque de France.
| Mortgage loan | Consumer credit | Crowdfunding | |
|---|---|---|---|
| Protection period | 10 days to think it over | 14-day cooling-off period | Varies according to platform |
| Lender's limitation period | 2 years | 2 years | 5 years (ordinary law) |
| Usury rate | Set by the Banque de France | Set by the Banque de France | Not applicable |
| Legal framework | Scrivener law, C. conso | Consumer Code | ECSP European regulation |
Mortgage loan
Forfeiture of term, incorrect APR, duty to warn, seizure of property
Read more →Consumer credit
Unfair terms, payment orders, over-indebtedness, FICP
Read more →Crowdfunding
Structuring, platform liability, debt collection
Read more →You are a borrower
Your bank has accelerated your mortgage or consumer credit. You dispute the amount claimed or the calculation of the interest rate. The instalments are piling up and the credit institution is threatening to issue an injunction to pay or seize your debt. These situations call for a rapid response. A credit lawyer can analyse your case and build your defence.
The Cour de cassation requires that the acceleration of the term be preceded by a formal notice accompanied by reasonable notice. A clause that allows the lender to terminate the credit agreement without such notice is unfair within the meaning of article L. 132-1 of the Consumer Code (Cass. civ. 1re, 22 March 2023, no. 21-16.044). This is an area of dispute that our law firm regularly exploits in banking litigation.
Our firm handles
- Auditing the loan contract and checking the overall effective rate
- Contesting the acceleration of payment and late payment penalties
- Liability claims against lenders for failure to warn or for granting excessive credit
- Negotiating payment terms and debt restructuring with the bank
- Assisting our customers before the Banque de France over-indebtedness commission
- Defence against enforcement measures : attachment on bank accounts, foreclosure, attachment of earnings
You are a guarantor
You have guaranteed the loan of a relative or company and the bank is demanding payment in full of the debt. The reform of the surety bond The French Government Order of 15 September 2021 has radically changed the applicable rules. The formalities have been simplified, but the proportionality requirements remain.
A guarantee that is manifestly disproportionate to the guarantor's income and assets at the time it is entered into cannot be enforced against the creditor. The creditor must inform the guarantor each year of the amount still owed by the principal debtor. Failure to provide this annual information will result in the forfeiture of interest and penalties due. A lawyer specialising in banking law can check that the undertaking is in order and organise your defence.
Our areas of defence
- Challenging the formal validity of the guarantee
- The disproportionality of the commitment in relation to income and assets
- Checking that the lender is complying with its annual information obligation
- Challenging the legality of the accelerated repayment of the principal loan
- The bank's liability for failure to advise the guarantor
You are a company
Businesses are faced with specific credit issues: wrongful termination of bank loans, refusal of financing, disputes over the terms and conditions of business loans, disputes relating to participative financing.
Crowdfunding, which has been governed since 2020 by the European regulation ECSP, raises new issues in practice: liability of platforms, investor information, recovery of debts in the event of default by the project promoter. Our lawyers can help you deal with all these commercial issues.
Our support
- Negotiating and securing professional finance contracts
- Litigation concerning unfair breach of credit and compensation for commercial loss
- Assistance in the event of insolvency proceedings for the declaration of claims and the treatment of securities
- Legal advice on structuring crowdfunding operations
- Recovery of debts arising from participative financing transactions
- Opposition to an order to pay issued against your company
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