Section 9: Earmarked credit

Where the consumer exercises his right of withdrawal from the contract of sale or the contract for the provision of services referred to in 9° of Article L. 311-1, the credit agreement intended to finance it is terminated ipso jure without costs or compensation, with the possible exception of the costs incurred in opening the credit file.

In the event of a dispute concerning the performance of the main agreement, the court may, until the dispute has been resolved, suspend the performance of the credit agreement. The credit agreement is automatically cancelled or terminated when the agreement for which it was concluded is itself judicially cancelled or terminated.The provisions of the first paragraph only apply if the creditor has intervened in the proceedings or has been called…

If the judicial cancellation or annulment of the main contract occurs through the fault of the seller, the seller may, at the request of the lender, be ordered to guarantee the borrower repayment of the loan, without prejudice to damages vis-à-vis the lender and the borrower.