Excessive or inappropriate credit: taking action against the bank
Your bank has granted you a loan without checking your ability to repay. You discover that the effective interest rate was wrong, or that no-one warned you about the risk of debt. The loan goes bad, and the consequences are there: over-indebtedness, seizure, loss of your property.
Bankers who grant credit have a duty to warn uninformed borrowers. They must ensure that the loan is suited to the customer's financial situation and warn them of the risk of excessive debt. This duty, enshrined by the Cour de cassation in 2007 and codified in article 2299 of the French Civil Code, is the main basis for liability claims against credit institutions. lending institutions.
The duty to warn - Article 2299 of the Civil Code
Professional creditors have a duty to warn natural person guarantors when the latter's commitment is unsuited to their abilities. This text, resulting from the Order of 15 September 2021, codifies a pre-existing obligation that also applies to uninformed borrowers.
Our firm handles
- Analysing the loan contract and checking the TEG/TAEG
- The borrower's status (informed or uninformed) - a determining factor in the outcome of the dispute
- Highlighting a failure to provide information or warnings
- Assessment of the loss suffered (loss of opportunity, direct financial loss)
- Amicable negotiation with the credit institution or legal action in the courts
Breach of competition and unfair support: defending your company
Your bank cancels your overdraft facility without notice. It interrupts a line of credit on which your cash flow depends. Or, on the other hand, it has artificially maintained credit lines when your situation was irremediably compromised - and your creditors suffer the consequences.
Article L. 313-12 of the French Monetary and Financial Code requires the bank to give 60 days' written notice of any reduction or interruption of a loan with no fixed term. The Court of Cassation has ruled that the company may request the reasons for the termination even after the notice period has expired, and that if it fails to respond, the bank is liable (Cass. com., 30 November 2022, no. 21-17.703).
Abusive support - Article L. 650-1 of the French Commercial Code
When insolvency proceedings are opened, creditors cannot be held liable for any loss suffered as a result of the financing granted, except in cases of fraud, gross interference in the management of the debtor, or if the guarantees given in return are disproportionate. This text creates a protective shield for banks, which practitioners must know how to circumvent.
Our areas of expertise
- Challenging the wrongful termination of a bank loan (lack of notice, failure to give reasons)
- Liability action for abusive support in the context of collective proceedings
- Defence against unfounded claims for early repayment
- Negotiation of settlement protocols with the bank
- Representation before the Commercial Court and the Court of First Instance
Bank fraud: asserting your rights against your bank
Fraudulent transfers made from your account, credit card transactions that you did not authorise, phishing or identity theft: the bank invokes your negligence to refuse to reimburse you.
However, the French Monetary and Financial Code requires the payment service provider to prove that the disputed transaction was authenticated, duly recorded and not affected by a technical deficiency - even before it can claim gross negligence on the part of the customer (articles L. 133-19 and L. 133-23 CMF). Recent Court of Cassation case law reinforces this evidential requirement (Cass. com., 20 November 2024, no. 23-15.099).
Our firm handles
- Challenging unauthorised payment transactions
- Analysis of the strong authentication procedure implemented by the bank
- Holding payment service providers liable
- Recovery of sums fraudulently debited
How we work
La bank liability covers a wide range: from poorly calibrated credit to payment fraud, Each dispute has its own rules, deadlines and pitfalls. Each dispute has its own rules, deadlines and pitfalls.
| Obligation | Content | Beneficiary | Sanction |
|---|---|---|---|
| Information | Provide information on the characteristics of the product or service | All customers | Damages |
| Warning | Warning of the risk of excessive debt | Uninformed borrowers and guarantors | Loss of chance, reduction of claim |
| Council | Directing customers to the right product for their profile | Variable depending on the service (increased investment) | Damages |
| Vigilance | Detecting apparent anomalies (suspicious transactions) | The customer and third parties | Civil liability, ACPR sanctions |
The deadline for taking action is 5 years from the time the damage occurs (article 2224 of the Civil Code). In the case of the duty to warn, the starting point is set not at the date of the loan, but at the moment when the damage becomes apparent - often when the first payment is not made or the term is accelerated.
Our firm takes a step-by-step approach: auditing the case, identifying the breaches, assessing the damage, then attempting to reach an amicable resolution before taking legal action in the courts or the commercial court, if necessary.
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