Banking disputes, loan challenges and payment fraud
Your bank granted a mortgage or consumer loan without verifying your ability to repay. The APR in your contract was incorrect. No one warned you about the risk of over-indebtedness. You are the victim of phishing, spoofing or card fraud, and the bank claims you were negligent in order to refuse reimbursement. Your account was closed without justification, or unjustified fees are accumulating. A banking law lawyer can help you identify the bank’s breaches and take action.
French law protects the customer far more than banks tend to suggest. The banker is bound by precise obligations – to inform, to warn, to advise and to exercise vigilance – and any failure to comply engages the bank’s liability. In fraud cases, the French Supreme Court (Cour de cassation) established a clear principle in 2024: the bank must prove that the disputed transaction was properly authenticated and was not affected by any technical deficiency, before it can even raise the customer’s alleged gross negligence (Cass. com., 20 November 2024, No. 23-15.099). An incorrect APR can lead to the nullity of the interest clause.
Our firm handles
- Challenging loan terms and analysing contractual conditions (APR, variable rates, borrower insurance)
- Liability claims against banks for breach of their duty to warn (bank liability)
- Disputing unauthorised payment transactions and recovering fraudulently debited sums
- Disputes relating to account management, bank charges and payment instruments
- Defending bank guarantors who entered into disproportionate personal guarantees
- Banking mediation and pre-litigation settlement negotiations
Withdrawal of credit facilities, financing disputes and commercial litigation
Your bank has withdrawn your overdraft facility or terminated a credit line on which your cash flow depends. It maintained credit artificially while your company was irretrievably compromised. A commercial dispute has arisen with a factor or lending institution in connection with a factoring or discounting arrangement.
<!– wp:solent/article-code {"title": "Withdrawal of credit facilities — Article L. 313-12, French Monetary and Financial Code", "content": "A bank that has granted an open-ended credit facility may only reduce or terminate it after giving 60 days’ written notice. Failure to respect this notice period engages the bank’s liability. Only seriously reprehensible conduct by the borrower or an irretrievably compromised financial position can justify immediate termination. »} –>Withdrawal of credit facilities – Article L. 313-12, French Monetary and Financial Code
A bank that has granted an open-ended credit facility may only reduce or terminate it after giving 60 days’ written notice. Failure to respect this notice period engages the bank’s liability. Only seriously reprehensible conduct by the borrower or an irretrievably compromised financial position can justify immediate termination.
Conversely, the abusive maintenance of credit to a company in difficulty can also give rise to liability, although Article L. 650-1 of the French Commercial Code limits such claims to specific situations: fraud, manifest interference in the debtor’s management, or disproportionate security taken in return. Our banking law practice acts both for claimants and defendants in these commercial disputes.
Our areas of intervention
- Challenging the wrongful termination of banking facilities (failure to give notice, lack of justification)
- Defending against unfounded demands for early repayment
- Disputes arising from factoring and discounting operations
- Liability claims for abusive credit support in insolvency proceedings
- Negotiating settlement agreements with banks
- Payment orders and commercial debt recovery
Financial markets, complex products and regulation
You subscribed to a structured financial product without fully understanding the risks. A sanction from the AMF (the French Financial Markets Authority) targets your business. A dispute has arisen with an investment services intermediary or financial adviser. French financial law imposes heightened duties of advice and disclosure in the provision of investment services.
The ACPR (the French Prudential Supervision Authority) and the AMF exercise ongoing supervision over banking and financial sector participants. Breaches of rules on marketing, transparency or compliance give rise to administrative sanctions and civil liability actions. Where a dispute arises with a financial institution, mediation or arbitration may offer an alternative to court proceedings.
Banking secrecy – Article L. 511-33, French Monetary and Financial Code
Every person who participates in the management or direction of a credit institution is bound by professional secrecy. This duty may be lifted only in limited circumstances (judicial authority, ACPR, tax administration), and any breach engages the institution’s liability.
Our intervention
- Litigation before civil and commercial courts in investment services matters
- Assisting clients in enforcement proceedings before the ACPR and the AMF
- Defending clients who have suffered loss from unsuitable investment advice
- Supporting financial professionals with regulatory compliance obligations
- Disputes relating to banking secrecy, financial guarantees and account seizure
How we work
Banking law covers a broad field. From poorly structured loans to payment fraud, through withdrawal of financing and failures of vigilance, each banking dispute has its own rules, time limits and pitfalls. A banking law practitioner must command consumer law, commercial law, the law of security interests and enforcement proceedings alike.
| Obligation | Scope | Beneficiary | Sanction |
|---|---|---|---|
| Disclosure | Inform the client of the characteristics of the product or service | All clients | Damages |
| Duty to warn | Alert the client to the risk of over-indebtedness | Non-sophisticated borrowers and guarantors | Loss of chance, reduction of claim |
| Duty to advise | Direct the client to the product suited to their profile | Variable (enhanced for investment services) | Damages |
| Vigilance | Detect apparent anomalies in transactions | The client and third parties | Civil liability, ACPR sanctions |
Under French law, the limitation period is 5 years from the date on which the damage occurs (Article 2224, French Civil Code). For claims based on the duty to warn, time begins to run not from the date of the loan, but from the moment the loss materialises – typically when the first payment is missed or when the lender accelerates the loan.
Our firm proceeds in stages: audit of the file, identification of the bank’s breaches, assessment of the loss suffered, then an attempt at amicable resolution before commencing, if necessary, proceedings before the Tribunal judiciaire, the Commercial Court or the Court of Appeal.
Frequently asked questions
How much does a French banking law lawyer cost?
Fees depend on the complexity of the case and the billing method agreed. Our firm charges fixed fees for consultations and defined assignments, and hourly rates for contentious banking matters. An initial meeting allows us to assess your situation and provide a detailed fee agreement.
What are the time limits for bringing a claim against my bank in France?
Under French law, liability claims against a bank are subject to a 5-year limitation period running from the date the damage occurs (Article 2224, Civil Code). For a breach of the duty to warn, time starts running from the first missed payment or the acceleration of the loan – not from the date the loan was signed. In fraud cases, the bank must be notified promptly after the unauthorised transaction is discovered.
My bank refuses to reimburse me after a fraud. What can I do?
If your bank invokes your gross negligence, be aware that under French law the burden of proof lies with the bank. It must demonstrate that the disputed transaction was properly authenticated and was not affected by any technical deficiency (Articles L. 133-19 and L. 133-23, French Monetary and Financial Code). The Cour de cassation held in October 2024 that no gross negligence may be attributed to the victim of spoofing – fraud by a fake bank adviser (Cass. com., 23 October 2024, No. 23-16.267). A banking law lawyer can challenge the refusal and pursue the bank’s liability.
Can the bank terminate my credit facilities without notice?
No. For any open-ended credit facility, the bank must give 60 days’ written notice (Article L. 313-12, French Monetary and Financial Code). Only seriously reprehensible conduct or an irretrievably compromised financial position can justify immediate termination. Failure to give notice engages the bank’s liability.
Do you handle urgent matters?
Yes. Some situations require an immediate response: sudden withdrawal of credit facilities threatening cash flow, ongoing bank fraud, imminent account seizure. Our firm acts swiftly, including through urgent interim proceedings (procedure de refere) before the Tribunal judiciaire.
Do you act across France and internationally?
Yes. Our firm, registered with the Marseille Bar, handles banking law matters before all French courts and internationally (Monaco, Switzerland, Italy, the United Arab Emirates, the United States, among others).