By Charlotte GAUCHON
5 April 2025
Excessive 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 full understanding of the concept of usurious lending, how it is calculated and the full range of sanctions available, please consult our dedicated article. This article details the penalties incurred and the major changes to the legal framework. Criminal penalties for usury Establishment of the offence of usury The offence of usury is established as soon as the total effective interest rate (TEG) exceeds the legal threshold at the time the credit is taken out. The court must specify the rate and the extent to which it exceeds the average reference rate. The Court of Cassation has described usury as an «objective, even mathematical» offence. The intentional element plays a limited role, often presumed....
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