By Charlotte GAUCHON
16 March 2025
The capitalisation of interest, more technically known as anatocism, is a mechanism that can have significant financial consequences on the cost of a debt in the event of late payment. The term may seem technical, but it is worth understanding how it works and its implications, particularly in relation to mortgages. While this article focuses on anatocism in the context of debt, it is worth noting that this same compound interest mechanism is the driving force behind the performance of many savings products, such as life insurance and home savings plans. This article explains what the anatocism clause is, how it applies and its limits, particularly in the protective context of consumer law. For a personalised analysis of your situation or to defend your rights, do not hesitate to contact our lawyers specialising in banking and mortgage law. What is anatocism? Definition and general rules...
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