Section 2: Debt consolidation

When the credit referred to in Article L. 312-1 are the subject of a credit transaction intended to group them together, the new credit agreement is subject to Chapter II.

When a credit transaction intended to consolidate previous loans includes one or more loans mentioned in article L. 313-1 whose relative share does not exceed a threshold set by decree by the Conseil d’Etat, the new credit agreement is subject to the chapitre II. Where this relative share exceeds this threshold, the new credit agreement is subject to chapitre III of this title.

When a credit transaction is intended to group together credits mentioned in article L. 313-1, the new credit agreement is subject to chapitre III. Any credit consolidation transaction secured by a mortgage, by another comparable security interest in immovable property for residential use or by a right linked to immovable property for residential use is subject, regardless of its purpose, to the provisions of Chapter III of this title. .

The lender who grants a credit consolidation transaction comprising one or more revolving credit agreements mentioned in article L. 312-57 reimburses the amount due under these loans directly to the original lender. When the transaction involves the entire outstanding amount of a revolving credit, the lender reminds the borrower of the possibility of cancelling the relevant agreement and offers to send the borrower a letter of cancellation signed by the…

The terms and conditions under which the credit transactions referred to in articles L. 314-10 to L. 314-13 are concluded in order to guarantee that the borrower is properly informed are specified by decree in the Conseil d’Etat.