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Chapter IV: Provisions common to consumer credit and home loans

Article L314-1 of the French Consumer Code

In all cases, for the purposes of determining the overall effective rate of the loan, as well as the effective rate taken as a reference, any direct or indirect charges, taxes, commissions or remuneration of any kind, borne by the borrower and known to the lender on the date of issue of the offer of credit or the amendment to the credit agreement, or the amount of which can be…

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Article L314-4 of the French Consumer Code

A Conseil d’Etat decree specifies the conditions for application of articles L. 314-1 to L. 314-3 and in particular the methods for determining the basis of assessment and calculating the overall effective rate, as well as the methods for calculating the annual effective rate of insurance referred to in articles L. 312-7 and L. 313-8.

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Article L314-6 of the French Consumer Code

A usurious loan is any conventional loan granted at an overall effective rate that exceeds, at the time it is granted, by more than one third, the average effective rate charged during the previous quarter by credit institutions and finance companies for transactions of the same nature involving similar risks, as defined by the administrative authority after consulting the Comité Consultatif du Secteur Financier. The categories of transactions for loans…

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Article L314-8 of the French Consumer Code

Transitional measures, derogating from the provisions of article L. 314-6, may be implemented by the Minister for the Economy, on a reasoned proposal from the Governor of the Banque de France, for a period that may not exceed eight consecutive quarters, in the event of:-an exceptionally large change in the cost of resources of credit institutions and finance companies;-modifications to the definition of transactions of the same nature mentioned in…

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Article L314-9 of the French Consumer Code

The provisions of articles L. 314-6 to L. 314-8 do not apply to loans granted to a natural person acting for professional purposes or to a legal entity engaged in an industrial, commercial, craft, agricultural or non-commercial professional activity. L. 314-6 to L. 314-8 do not apply to loans granted to a natural person acting for professional purposes or to a legal entity engaged in an industrial, commercial, craft, agricultural…

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