Subsection 1: Civil penalties

Where a conventional loan is usurious, excessive collections under articles L. 314-1 to L. 314-9 are automatically deducted from the normal interest due at the time and, subsidiarily, from the principal of the claim. If the claim is extinguished in principal and interest, the sums unduly collected are refunded with statutory interest from the day they were paid.

In the event of failure to mention or incorrect mention of the overall effective rate provided for in article L. 314-5, the lender may be deprived of the right to interest in the proportion set by the judge, with particular regard to the harm caused to the borrower. When the lender is deprived of the right to interest under the conditions set out in the previous paragraph, the borrower is…