Credit and consumer law
Indemnity for early repayment (ira) on a mortgage loan: legal regime and disputes
By Charlotte GAUCHON25 June 2025Early repayment of a mortgage is an important step in a borrower's financial life, often prompted by an unexpected influx of cash, the purchase of a loan on more favourable terms or the sale of the property being financed. While this is a right for the consumer, it is not without a downside for the bank, which sees a source of future income disappear. It is in this context that the early repayment charge (IRA) comes into play, a form of compensation whose calculation, ceiling and legal validity are strictly regulated. Understanding the rules governing this compensation is essential for any borrower considering paying off their loan early. This article sets out to explain the legal framework of the IRA in detail, exploring both the borrower's rights and the possible mechanisms for contesting them, an area in which the assistance of a lawyer who is an expert in mortgage law can prove decisive. Renegotiation and...
Home loans taken out before 1 July 2016: which legal regime still applies?
Mortgages, Credit and consumer lawOrder no. 2016-351 of 25 March 2016 radically changed the legal landscape for home loans in France, transposing European Directive 2014/17/EU. Essentially coming into force on 1 July 2016, this reform strengthened the protection of borrowers, particularly in terms of pre-contractual information and assessment of solvency....Defaults by mortgage lenders (Post-2016): what penalties?
Mortgages, Credit and consumer lawBuying a property is often the investment of a lifetime. In most cases, taking out a mortgage is an essential step in the process. Given the importance of this commitment, the French legislator, particularly since Order no. 2016-351 of 25 March 2016 transposing a European directive, has strengthened the protection of creditors.The annual percentage rate of charge (APR) on home loans: calculation, verification and disputes
Mortgages, Credit and consumer lawThe Annual Percentage Rate, better known by its French acronym TAEG, is a key element of any mortgage offer. It represents the total cost of the loan to the borrower, expressed as an annual percentage of the amount borrowed. Understanding its composition, knowing how to check it and knowing what to do in the event of an error is essential...Assessing a borrower's creditworthiness on a home loan: lender obligations (post-2016)
Mortgages, Credit and consumer lawGranting a home loan represents a major financial commitment for both the borrower and the lending institution. Before granting finance, the bank or lending institution is required by law to make a thorough assessment of the borrower's ability to repay the loan. This is a crucial stage in preventing over-indebtedness, and is a key factor in...Pre-contractual information in mortgages: FISE and the duty to warn (post-2016)
Mortgages, Credit and consumer lawTaking out a home loan is a decisive step in a life project, committing the borrower over a long period of time. The complexity of the offers and the financial stakes involved make pre-contractual information essential. Since the major reform of 2016, resulting from the transposition of the European directive on mortgage credit (MCD),...Home loans in France: legal framework and borrower protection (post-reform 2016)
Mortgages, Credit and consumer lawBuying a property is often the investment of a lifetime. Credit is used almost systematically to bring this project to fruition. Aware of the stakes involved and the risks to individuals, French lawmakers, spurred on by European law, have considerably strengthened borrower protection, notably through the Order of 25 March...Disclosure requirements for loan insurance
Credit insurance, Credit and consumer lawThe relationship between a borrower and his bank turns into an obstacle course when a dispute arises over borrower's insurance. This protection, which is often required in practice when taking out a mortgage, suffers from a chronic lack of information. This complex mechanism involves three players: the insurer who draws up the contract, the bank that issues the policy and the insurer...Loan insurance: legal analysis of a complex package
Credit insurance, Credit and consumer lawLoan insurance is an essential part of taking out a property loan, but it raises a number of legal questions. Between protection for the lender, guarantees for the borrower and contractual entanglements, this insurance deserves an in-depth examination. The legal basis and anatomy of an atypical contract Loan insurance belongs to the category of insurance that protects the...The life and end of the loan insurance contract
Credit insurance, Credit and consumer lawMortgage borrowers are very familiar with creditor insurance, which is often seen as a simple formality when taking out a loan. But this is a simplistic view. This complex contract deserves special attention, both during its term and when it is terminated. Special features of loan insurance Loan insurance is a complex contract that requires special attention...Credit insurance: definition, legal nature and developments
Credit insurance, Credit and consumer lawThe business world is built on trust. However, this trust is sometimes misplaced. Credit insurance offers companies a means of protecting themselves against the insolvency of their customers. This tool remains little known to the general public, but is a strategic element for many businesses. Definition and usefulness of...Credit insurance vs bond insurance: understanding the differences
Credit insurance, Credit and consumer lawThese two insurance mechanisms protect commercial transactions, but they operate differently. Confusing them can lead to costly strategic errors for businesses. Credit insurance: main features Credit insurance protects the creditor-seller against the risk of non-payment. Creditors take out this insurance to protect themselves against the insolvency of their customers. According to V....European law and credit insurance: gradual recognition
Credit insurance, Credit and consumer lawUntil the 1970s, the legal status of credit insurance in France was uncertain. European law has broken down these artificial boundaries, allowing it to develop as a genuine insurance contract. How did this development come about? What are the implications for businesses? Community competence in credit insurance The Treaty on European Union...International buyer credit - mechanisms and legal structure
Export credit, Credit and consumer lawIn international trade, financing exports is often a major challenge. Among the solutions available, buyer credit has emerged as a sophisticated instrument for smoothing international transactions while effectively spreading risk. This triangular mechanism deserves a closer look to understand its subtleties...Understanding supplier credit: pre-financing and mobilisation
Export credit, Credit and consumer lawExport operations require considerable financial resources. Exporters often have to incur significant expenses long before they receive payment from their foreign customers. That's why the banking system has developed several financing mechanisms tailored to these specific needs. Pre-financing loans: financing the period...Public financial support for export credits: a changing system
Export credit, Credit and consumer lawIn the international trade arena, public financial support for export credits is a powerful economic lever. Unknown to the general public but essential for exporting companies, this mechanism has undergone profound changes in recent decades. Here we take a look at this strategic mechanism and its legal implications for exporters.Lost, stolen, forged or unpaid cheques: what can you do?
Cheques, Credit and consumer lawWhilst cheques remain a practical means of payment, they are not without risk. In addition to the well-known problem of bounced cheques, other incidents can occur: loss, theft, forgery, etc. What should you do if you find yourself in one of these situations? What if, quite simply, the cheque...The accounting and tax treatment of property leasing: practical issues
Leasing, Credit and consumer lawHave you opted for property leasing to finance your business premises? This financing tool has its own special accounting and tax features that you need to understand. Between special provisions, financial depreciation and the treatment of purchase options, the property leasing system is complex. Understanding the hybrid nature of property leasing...Paying and being paid by cheque: what the law says
Cheques, Credit and consumer lawUsing a cheque to pay for a purchase or receive a payment seems to be part of everyday life. However, behind this apparent simplicity lie precise legal rules. Can you refuse payment by cheque? What does "handing over" a cheque really mean? What are the obligations of...The end of property leasing: terms and legal implications
Leasing, Credit and consumer lawIn the jungle of commercial contracts, property leasing occupies a unique place. Neither a traditional lease nor a traditional sale, this complex transaction merits a closer look at its possible outcomes. After all, all leasing comes to an end - sometimes planned, sometimes precipitated. And it is often at this point that complications arise...NSF cheques: understanding bank bans and their consequences
Cheques, Credit and consumer lawThe "wooden cheque". The expression alone is enough to cause concern. Writing a cheque without the necessary funds in your bank account is not a trivial act under French law. Far from being a simple oversight, it triggers a strict process known as a "bank ban", the consequences of which are...
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