By Charlotte GAUCHON
22 March 2025
html Have you signed a credit agreement but find the actual cost unclear? Borrowers remain unaware of the legal protections surrounding interest rates. However, banking institutions must comply with specific rules on transparency and information. Rate transparency: protection against abuse Interest rate regulations are subject to a strict legal framework. The aim? To protect borrowers from abusive practices and ensure they understand the financial commitments they are entering into. The Consumer Code strictly regulates the information that must be provided. Lenders who neglect these obligations are liable to heavy penalties – up to and including the total loss of interest. The borrowing rate: the basis of credit Legal definition According to Article L. 311-1, 8° of the Consumer Code, the borrowing rate is: «the interest rate expressed as a fixed or variable percentage, applied to the borrowed capital or the amount of credit used, on a basis...
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