Credit and consumer law
Condition precedent for obtaining a property loan: issues and case law
By Charlotte GAUCHON25 June 2025Buying a property is a decisive step, financed in the vast majority of cases by a loan. To protect the non-professional buyer, the legislator has introduced an essential security mechanism: the condition precedent that the loan must be obtained. This provision links the validity of the sale to the granting of finance by a bank. Although it represents fundamental protection, its application is the source of a great deal of litigation, in which the buyer's good faith is systematically examined. Understanding the contours of this condition is therefore crucial to securing your project. The legal framework and the protection afforded to borrowers on home loans are complex, and include a number of specific situations that require precise analysis. A lawyer who is an expert in mortgage law can prove indispensable in navigating these subtleties. The principle of the condition precedent for obtaining a loan The condition precedent for obtaining a loan is a measure...
Who can benefit from the protective consumer credit regime?
Consumer credit, Credit and consumer lawThinking of taking out a loan? The legal status of your loan determines your rights. The consumer credit regime offers essential guarantees, but does not apply to all borrowers or to all loan transactions. For an in-depth understanding, discover the legal definitions...The legal framework for consumer credit: definition and developments
Consumer credit, Credit and consumer lawYou've probably already taken out a loan to finance the purchase of a car, a television set or to pay for renovation work. These transactions, which are part of our daily lives, are governed by a complex and protective legal arsenal. Since the 1970s, legislators have gradually put in place a legal framework that...Special situations when it comes to mortgages
Mortgages, Credit and consumer lawBuying a property is an important step, and one that is often financed by credit. While conventional property loans are well known, some situations are out of the ordinary and require extra vigilance. Whether it's borrowing in a foreign currency, coordinating several loans or understanding the subtleties of suspensive conditions,...STRUCTURED LOANS AND "TOXIC LOANS
Credit and consumer law1. Definition and typology of structured loans The three main categories of structured loans Structured loans are complex financial products whose interest rate varies according to a mathematical formula linked to changes in financial indices. There are three main categories of structured loans: products with a deactivating barrier that...PROPERTY INVESTMENT LOANS
Credit and consumer lawThe specifics of complex property finance Investment in rental property involves a number of different arrangements. The term loan, which allows the borrower to repay only the interest and pay off the capital at maturity, is proving very popular. This arrangement offers tax advantages for investors, who can deduct the entire cost of the loan...Is it possible to foreclose on a debtor despite having a case of overindebtedness?
Credit and consumer law, Over-indebtednessThe principle is that seizures are suspended for the duration of the proceedings. In addition, creditors are prohibited from levying any further seizures. Some seizures cannot be suspended despite an overindebtedness file. This is the case for seizures of maintenance and property when an auction date has been set.The anatocism clause, or capitalisation of interest
Mortgages, Credit and consumer lawThe 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 what it involves, particularly in the case of mortgages. If...Payment in arrears or in arrears
Credit and consumer lawThe terms "payment in arrears" and "payment in arrears" refer to different payment methods. These payment methods are not used in the same cases and do not offer the same advantages.Mortgage credit
Credit and consumer lawMortgage credit is credit secured by a mortgage. All types of credit can be secured by a mortgage: real estate credit, consumer credit, business credit, etc. However, the use of a mortgage guarantee is only possible under certain conditions. Mortgage credit: principles of...Participative financing: what innovations in 2024?
Credit and consumer law, Equity loansFind out about the innovations in participative financing in 2024, a fast-growing method of financing a variety of projects in France, including renewable energy.Equity loans: a fast-growing financing solution
Credit and consumer law, Equity loansEquity loans are a way of financing growing businesses. Find out more about its advantages, disadvantages and how it works.Forfeiture of a matured loan
Credit and consumer lawCredit institutions or banks sometimes declare that the term of a loan that has fallen due, i.e. has expired, has lapsed. This practice, which stems from the lender's misapplication of the rules of law, has often been encountered by our firm. Analysis. Acceleration of the term: definition The acceleration clause is a...Private loans: analysis and advice from a lawyer
Credit and consumer law, Personal loansPrivate-to-private loans are becoming increasingly popular. Its popularity is leading many operators to present it as a quick and easy solution. Here's our advice.The benefits of consumer credit
Credit and consumer lawErrors made by the consumer credit organisation are often punished by forfeiture of the right to contractual interest. The contractual interest is then replaced by interest calculated at the legal rate. Problem: the rise in the key ECB interest rates has resulted in a rise in the interest rate...Early repayment indemnities - concept, calculation
Credit and consumer lawThe borrower can always decide to repay a loan early. In return, they may be required to pay so-called "early repayment charges".Understanding lump-sum compensation (or compensation payable immediately)
Credit and consumer lawIn just a few minutes, we'll take a look at a banking law concept: the lump-sum indemnity or indemnity for immediate payment The lump-sum indemnity: a contractually agreed penalty Background: A bank may decide to accelerate a loan and demand immediate payment of the sums borrowed (see our article on accelerating loans) because of a lack of funds....What is a forfeiture of term?
Credit and consumer lawIf the borrower loses the term of the loan contract, he or she must immediately repay the funds lent.What is the outstanding capital?
Credit and consumer lawIn just a few minutes, your banking lawyer can help you understand a key concept in banking litigation: the outstanding capital. The concept of outstanding capital When a bank grants credit to a borrower, the financing project is actually made up of three elements: To understand...Admissibility of a case of overindebtedness
Credit and consumer law, Over-indebtednessThe admissibility of an overindebtedness application is governed by certain criteria. However, there are also situations that do not qualify for overindebtedness. Criteria for admissibility of over-indebtedness applications For an overall understanding of over-indebtedness, it is advisable to refer to article L. 711-1 of the French Consumer Code,...
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