Defending the borrower against the lender
A missed payment on a French consumer credit triggers a rapid sequence: reminders, penalty interest, listing on the national credit default register (FICP), then court proceedings before the consumer disputes judge (juge des contentieux de la protection). The lender accelerates the loan and demands immediate repayment of the outstanding capital, interest, and penalties. The pressure is intense and the deadlines are short.
Our firm intervenes from the first signs of difficulty to analyse the regularity of the lender’s procedure, identify available defences, and – depending on the circumstances – negotiate an arrangement or challenge the claim in court. The French Consumer Code imposes strict formalities on lenders, and every breach provides the borrower with a line of defence.
What we handle
- Defending the borrower against acceleration of debt and lender payment claims
- Challenging unfair terms in credit agreements (acceleration without reasonable notice, disproportionate penalties)
- Opposing payment orders (injonction de payer)
- Negotiating payment schedules and settlement agreements with credit institutions
- Applying for removal from the French credit default register (FICP)
- Defending in linked credit disputes (solar panels, vehicles, building works)
The two-year time bar
Article R. 312-35 of the French Consumer Code requires the lender to bring proceedings within 2 years from the first unremedied missed payment. After that deadline, the payment claim is inadmissible. The court may raise this time bar of its own motion. This is one of the most effective defences in French consumer credit litigation – it has no direct equivalent in English law, where the standard limitation period for debt claims is six years.
Consumer credit dispute – key stages
Default
Formal demand
Acceleration
Court proceedings
Court’s own-motion review
Judgment
Challenging the credit agreement: borrower’s rights
The French Consumer Code strictly regulates the formation and performance of credit agreements. Any breach by the lender of its statutory obligations opens the door to forfeiture of contractual interest – a sanction that reduces the borrower’s debt to the bare capital borrowed. The cases are common: missing or non-detachable withdrawal form, incomplete contractual summary box, funds released before the statutory 7-day waiting period, incorrect APRC calculation.
Our firm conducts a systematic audit of the credit agreement and the loan origination process. We identify formal irregularities, calculate the financial impact of interest forfeiture, and prepare the challenge before the consumer disputes judge.
Most common irregularities
- Missing or irregular detachable withdrawal form (Article L. 312-21, Consumer Code) – the lender must prove delivery; the borrower’s signature alone is insufficient
- Incomplete contractual summary box: omission of amortisable charges from the instalment amount
- Release of funds before the 7-day waiting period – nullity of the agreement (Article L. 312-25, Consumer Code)
- Incorrect APRC calculation – insurance premiums, arrangement fees, and guarantee costs must all be included
- Linked credit: capital paid to the supplier without verifying full performance of the underlying contract
- Revolving credit: failure to provide annual information on renewal terms
The right of withdrawal
Article L. 312-19 of the Consumer Code grants the borrower a 14 calendar day withdrawal period from acceptance of the credit offer. The lender must include a detachable withdrawal form with the agreement. The Cour de cassation has held that a contractual clause acknowledging receipt of the form constitutes only an indication, which the lender must corroborate with additional evidence (Cass. 1re civ., 28 May 2025, No. 24-14.679).
Guarantor of a consumer credit: your defences
A guarantor (caution) of a consumer credit benefits from reinforced protections under French law. The lender must notify the guarantor of the first unremedied missed payment (Article L. 341-1, Consumer Code) and provide annual information on the outstanding amount. The guarantee must not be disproportionate to the guarantor’s income and assets at the time it was given.
When the lender calls on the guarantee following the borrower’s default, our firm verifies the regularity of the surety agreement, compliance with information obligations, and proportionality. Any breach constitutes a ground for challenging the call on the guarantee.
What we verify
- Formal validity of the surety agreement and compliance with mandatory wording
- Proportionality of the guarantee relative to the guarantor’s financial position
- Lender’s compliance with the annual information obligation
- Notification to the guarantor of the first missed payment
- Whether the borrower’s defences (interest forfeiture, time bar) can be invoked by the guarantor
Over-indebtedness: finding a way out
When accumulated debts make repayment impossible, the French over-indebtedness procedure (surendettement) provides a statutory exit route. The Banque de France commission can impose a repayment plan, suspend payments, or order partial or total discharge of debts. This is a procedure unique to French law with no direct UK equivalent; it is closer in purpose to a Debt Relief Order but applies more broadly.
Our firm assists with the preparation of the over-indebtedness file, negotiations with creditors, and – where necessary – challenges to the commission’s decisions before the consumer disputes judge. We also act for creditors who wish to challenge the admissibility of an over-indebtedness application or assert their rights within a repayment plan.
Our services
- Preparing and filing the over-indebtedness application with the departmental commission
- Challenging an inadmissibility decision before the consumer disputes judge
- Negotiating a consensual repayment plan with creditors
- Applying for personal recovery with or without asset liquidation
- Defending against enforcement measures during the proceedings (stay of seizures)
- Advising creditors within over-indebtedness proceedings
Frequently asked questions
Which court handles consumer credit disputes in France?
The consumer disputes judge (juge des contentieux de la protection) of the Judicial Court at the borrower’s domicile. This judge has exclusive jurisdiction over consumer credit and over-indebtedness matters. The court may raise Consumer Code defences of its own motion, including the two-year time bar and forfeiture of interest.
A lender is demanding repayment more than 2 years after the first default – is that valid?
The claim is likely time-barred. Article R. 312-35 of the Consumer Code imposes a 2-year limitation period from the first unremedied missed payment. If the lender acts beyond that deadline, its claim is inadmissible. Our firm verifies the precise starting point of the time bar and raises the defence before the court.
Can a bank accelerate a loan without notice?
Not if the clause allows acceleration without a reasonable notice period. The Cour de cassation has held that such a clause is unfair because it exposes the borrower to a sudden worsening of repayment conditions (Cass. 1re civ., 29 May 2024). An unfair clause is deemed unwritten: the bank cannot rely on it.
What happens if the lender failed to provide the withdrawal form?
The lender faces forfeiture of the right to interest. The borrower then owes only the capital borrowed, with no contractual interest whatsoever. This is one of the most powerful defences in French consumer credit litigation. The lender must prove that the form was provided – the borrower’s signature on an acknowledgment clause is not sufficient proof.
Do you handle urgent cases?
Yes. When enforcement measures are initiated on the basis of a consumer credit, we intervene urgently to verify the regularity of the procedure, challenge the enforcement title if necessary, and apply for payment deferrals. Speed is decisive: some opposition deadlines are as short as one month.