Wear and tear
Loansharking: legal definition, rate calculation and criminal and civil penalties
By Charlotte GAUCHON17 June 2025The loan contract is a common act in the lives of individuals and businesses, but its remuneration is strictly regulated. Among the safeguards established by law, the prohibition on usurious lending is one of the oldest and most important. It is an essential protection for borrowers, designed to protect them from excessive interest rates. However, defining what constitutes a usurious rate, understanding how it is calculated and knowing the penalties attached to it is a technical exercise. The usury regime is one of the fundamental limits on a lender's remuneration, and failure to observe it can have serious consequences for both the borrower and the credit institution. The concept of usurious loans under French law A loan is considered usurious when its interest rate exceeds a maximum threshold set by law, known as the "usury rate". More specifically, article L. 314-6...
Loansharking: penalties and recent regulatory changes
Credit and consumer law, UsuryExcessive interest rates expose lenders to severe penalties. The anti-usury system is characterised by its dual nature, criminal and civil. In recent years, the legislator has relaxed certain rules, particularly for business loans. For a complete understanding of the concept of usurious lending, its...Usury under French law: definition, scope and rate calculation
Credit and consumer law, UsuryControlling interest rates is a major issue in protecting borrowers and businesses against abusive practices. In France, interest rates are capped under the anti-abuse system, and lenders who exceed these limits are penalised. This regulation, which is often little-known, deserves our full attention, given its practical implications...
EN 
FR