Subsection 3: Default by the borrower

As soon as the borrower first defaults on repayment, the lender shall inform the borrower, on paper or any other durable medium, of the risks it incurs under Articles L. 312-39 and L. 312-40 as well as, where applicable, under the article L. 141-3 of the Insurance Code. This warning does not prevent the lender from temporarily paying the insurance premium for the credit for which arrears have been recorded,…

When the lender has required the borrower to take out insurance and the borrower has taken out insurance with the insurer of his choice, the insurer shall inform the lender of the borrower’s non-payment of the insurance premium. .

No compensation or costs other than those mentioned in articles L. 312-39 and L. 312-40 may not be charged to the borrower in the event of default provided for in these articles. However, in the event of default by the borrower, the lender may claim reimbursement from the borrower of the taxable costs incurred as a result of the borrower’s default, to the exclusion of any flat-rate reimbursement of collection…

If the borrower defaults, the lender may demand immediate repayment of the outstanding capital plus any accrued but unpaid interest. Until the date of actual payment, the outstanding sums accrue default interest at a rate equal to that of the loan.In addition, the lender may demand compensation from the defaulting borrower which, depending on the remaining term of the contract and without prejudice to the application of the article 1231-5…

In the event of default by the borrower in the performance of a leasing contract accompanied by a promise of sale or a hire-purchase contract, the lender is entitled to demand, in addition to the return of the property and the payment of due and unpaid rents, compensation which, depending on the remaining term of the contract and without prejudice to the application of the article 1231-5 of the Civil…