Credit law at the heart of our practice
Our firm handles credit disputes on a daily basis. Errors in the calculation of the annual percentage rate of charge (APRC, known in France as the TAEG), acceleration of debt without proper notice, disproportionate personal guarantees, unfair terms in loan agreements: these situations require a precise command of the French Consumer Code and the case law of the Cour de cassation.
French credit law covers three distinct areas in which our lawyers practise: mortgage lending, consumer credit, and crowdfunding. Each follows its own rules on borrower protection, time limits, and remedies. Our banking and finance team advises individuals and businesses across the full range of these disputes.
Key legislation
French credit law is primarily governed by the Consumer Code: Articles L. 311-1 et seq. for consumer credit, Articles L. 312-1 et seq. for mortgage lending. The annual percentage rate of charge (TAEG) must appear in every loan offer (Article L. 314-5). Its absence or incorrect calculation exposes the lender to forfeiture of the right to contractual interest. The interest rate must not exceed the usury rate published quarterly by the Banque de France.
| Mortgage lending | Consumer credit | Crowdfunding | |
|---|---|---|---|
| Cooling-off period | 10-day reflection period | 14-day withdrawal right | Varies by platform |
| Lender’s limitation period | 2 years | 2 years | 5 years (general law) |
| Usury rate | Set by the Banque de France | Set by the Banque de France | Not applicable |
| Legal framework | Loi Scrivener, Consumer Code | Consumer Code | EU ECSP Regulation |
Mortgage lending
Acceleration of debt, APRC disputes, duty to warn, property seizure
Learn moreConsumer credit
Unfair terms, payment orders, over-indebtedness, FICP listing
Learn moreCrowdfunding
Structuring, platform liability, debt recovery
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You are a borrower
Your bank has accelerated your mortgage or consumer loan, demanding immediate repayment of the full outstanding balance. You dispute the amount claimed or the calculation of the interest rate. Arrears are mounting and the lender is threatening an order for payment or property seizure. These situations call for a rapid response. A French credit law lawyer can analyse your file and build your defence.
The Cour de cassation requires that acceleration of debt be preceded by a formal demand allowing the borrower a reasonable period to remedy the default. A clause permitting the lender to terminate the credit agreement without such notice is unfair within the meaning of Article L. 132-1 of the Consumer Code (Cass. civ. 1re, 22 March 2023, No. 21-16.044). This is a line of challenge that our firm regularly deploys in banking disputes.
What we handle
- Auditing the loan agreement and verifying the annual percentage rate of charge
- Challenging the acceleration of debt and late-payment penalties
- Bringing claims against the lender for breach of the duty to warn or for reckless lending
- Negotiating payment schedules and restructuring debt with the bank
- Advising in over-indebtedness proceedings before the Banque de France commission
- Defending against enforcement measures: attachment of bank accounts, property seizure, earnings attachment
You are a guarantor
You guaranteed a loan taken out by a relative or a company, and the bank is now demanding full payment of the debt. The 2021 reform of French surety law (Ordinance of 15 September 2021) substantially changed the applicable rules. Formalities have been simplified but the proportionality requirements remain.
A personal guarantee that is manifestly disproportionate to the guarantor’s income and assets at the time it was given is unenforceable against the creditor. The creditor must inform the guarantor annually of the amount still owed by the principal debtor. Failure to provide this annual notice results in forfeiture of accrued interest and penalties. A banking law lawyer can verify the regularity of the guarantee and organise your defence.
Lines of defence
- Challenging the formal validity of the surety agreement
- Invoking disproportionality of the guarantee relative to income and assets
- Verifying the lender’s compliance with the annual information obligation
- Challenging the regularity of the acceleration of the underlying loan
- Bringing a claim against the bank for breach of its duty of care towards the guarantor
You are a business
Businesses face credit issues of their own: abusive withdrawal of banking facilities, refusal of financing, disputes over professional loan terms, and litigation arising from crowdfunding operations.
Crowdfunding, regulated since 2020 by the EU ECSP Regulation, raises new practical questions: platform liability, investor information, and debt recovery when a project promoter defaults. Our lawyers advise on the full range of these commercial issues.
Our services
- Negotiating and securing professional financing agreements
- Litigating abusive withdrawal of credit facilities and recovering commercial losses
- Advising in insolvency proceedings on proof of debt and the treatment of security interests
- Structuring crowdfunding operations
- Recovering debts arising from crowdfunding transactions
- Opposing payment orders issued against your company
Frequently asked questions
My bank has accelerated my loan – what should I do?
Check immediately whether you received a formal demand giving you a reasonable period to remedy the default. Without this step, the acceleration is challengeable before the French courts. Do not make any payment before consulting a banking law lawyer.
Can the interest rate on a loan be challenged?
Yes. If the APRC (TAEG) is incorrect or if certain mandatory charges were not included in the calculation, the sanction is forfeiture of the lender’s right to contractual interest. Depending on the case, this can mean substantial savings over the life of the loan.
What are the time limits for bringing a credit claim in France?
The lender has 2 years to bring a payment claim on a consumer credit. The borrower has 5 years to bring a liability claim against the bank for breach of its obligations. These are strict deadlines: once expired, the right to sue is extinguished.
Do you handle urgent banking disputes?
Yes. Our firm acts in interim proceedings or on application when the situation requires it – for example, to suspend an enforcement measure, challenge an abusive listing on the French credit default register (FICP), or prevent a property seizure.