By Charlotte GAUCHON
5 April 2025
Controlling interest rates is a major issue in protecting borrowers and businesses against abusive practices. In France, the anti-abuse system sets a ceiling on interest rates and penalises lenders who exceed these limits. This regulation, which is often little-known, deserves our full attention because of its far-reaching practical implications. What is usury under French law? Usury is legally defined as charging an interest rate higher than the maximum rate authorised by law. According to Professor Carbonnier, usury is «excessive interest stipulated by the debtor of a capital sum». This offence consists of demanding remuneration that is disproportionate to the credit service provided. The concept of usury has evolved over a long period of time. In Roman antiquity, the interest rate was already limited to 8.33%. In the Middle Ages, the Christian religion totally prohibited interest-bearing loans, considering that «interest is the wage of time, and time...
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