Defending the borrower against the credit institution

An unpaid consumer credit instalment triggers a rapid chain of events: reminders, surcharges, registration on the FICP, and then a summons to appear before the Protection Litigation Judge. The lender cancels the loan and demands immediate repayment of the outstanding capital, interest and penalties. The pressure is on and the deadlines are short.

Our firm intervenes as soon as the first difficulties arise to analyse the legality of the procedure initiated by the lender, identify the means of defence and, depending on the case, negotiate an adjustment or contest the debt before the court. Consumer law imposes strict formalities on the lender, and any breach of these constitutes a defence lever for the borrower.

Our firm handles

  • Defence of the borrower in the event of acceleration of the term and action for payment by the lender
  • Challenging unfair terms in credit agreements (accelerated repayment without reasonable notice, disproportionate penalties)
  • Opposition to payment orders
  • Negotiating payment deadlines and amicable payment schedules with credit institutions
  • Application for release from FICP registration
  • Defence in disputes relating to assigned credit (solar panels, vehicles, works)

Legal focus - Biennial foreclosure

Article R. 312-35 of the French Consumer Code requires the lender to act within a period of 2 years from the first unpaid incident. Once this period has elapsed, the claim for payment is inadmissible. The court may raise this issue of its own motion. This is one of the most effective defences in consumer credit cases.

Consumer credit litigation - key stages

1

Failure

2

Formal notice

3

Forfeiture of term

4

Assignation JCP

5

Automatic control

6

Judgement

Challenging a credit agreement: the borrower's rights

The Consumer Code strictly governs the formation and performance of credit agreements. Any failure by the lender to meet its obligations entitles the borrower to forfeit interest - a penalty that reduces the borrower's debt to the capital borrowed. The cases are frequent: withdrawal form missing or not detachable, incomplete contractual framework, funds released before the legal deadline of 7 days, incorrect total effective rate.

Our firm carries out a systematic audit of the credit agreement and the procedure for setting up the loan. We identify any formal irregularities, calculate the financial impact of the forfeiture of interest and prepare the challenge before the judge responsible for protection disputes.

The most common irregularities

  • Absence or irregularity of the detachable withdrawal form (art. L. 312-21 C. conso) - the lender must prove that it has been delivered, the borrower's signature is not sufficient
  • Incomplete contractual framework: amortisable costs omitted from the maturity amount
  • Release of funds before expiry of the 7-day period - nullity of the contract (art. L. 312-25 C. conso)
  • Error in calculating APR - insurance, administration and guarantee fees must be included
  • Earmarked credit: payment of capital to the seller without verification that the service has been fully performed
  • Revolving credit: failure to provide annual information on renewal terms

Legal focus - The right of withdrawal

Article L. 312-19 of the French Consumer Code gives borrowers a period of 14 calendar days to withdraw from the contract once the offer of credit has been accepted. The lender must attach a detachable form to the contract. The Court of Cassation has ruled that the clause acknowledging that this form has been provided is merely an indication that the lender must corroborate with other information (Cass. 1re civ., 28 May 2025, no. 24-14.679).

Consumer credit guarantor: how to defend yourself

Guarantors who guarantee consumer credit benefit from enhanced protection. The lender must inform the guarantor of the first payment incident that is not rectified (art. L. 341-1 C. conso) and inform the guarantor each year of the amount outstanding. The guarantee must not be disproportionate to the guarantor's income and assets at the time of the commitment.

When the lender calls on the guarantor after the borrower has defaulted, our firm checks that the guarantee undertaking is in order, that the information obligations have been met and that the guarantee is proportionate. Failure to comply with any of these obligations is a defence to the guarantee call.

What we check

  • The formal validity of the guarantee deed and compliance with the compulsory particulars
  • Proportionality of the undertaking in the light of the guarantor's financial situation
  • Compliance by the lender with its obligation to provide annual information (art. L. 313-22 CMF)
  • Notification to the guarantor of the first unpaid instalment
  • Enforceability against the guarantor of the borrower's defences (forfeiture of interest, foreclosure)

Over-indebtedness: help in finding a solution

When the accumulation of credit makes it impossible to repay debts, the over-indebtedness procedure offers a way out. The over-indebtedness commission of the Banque de France can impose a repayment plan, suspension measures or partial or total cancellation of debts.

Our firm can help you put together an over-indebtedness file, negotiate with creditors and, if necessary, challenge the commission's decisions before the judge in charge of protection disputes. We also act for creditors who wish to contest the admissibility of an over-indebtedness application or assert their rights under a plan.

Our work covers

  • Preparing and submitting the over-indebtedness file to the departmental commission
  • Challenging an inadmissibility decision before the JCP
  • Negotiating a conventional recovery plan with creditors
  • Application for personal recovery with or without liquidation
  • Defence against enforcement measures during the proceedings (suspension of seizures)
  • Advising creditors in over-indebtedness proceedings