French Consumer Code

For an overdraft authorisation or overdraft facility, where the annual percentage rate of charge is calculated before they are used, the calculation is made using the method defined by the formula set out in the appendix to this code and referred to in article R. 314-3. After use of an overdraft authorisation, overdraft facility or overdraft, the annual percentage rate of charge is calculated by relating the amount of credit…

In the case of a discounting transaction, the period rate is defined as the ratio between the interest and miscellaneous costs payable by the borrower in respect of the discount and the amount of the discounted bill of exchange. The period is equal to the number of calendar days, from the negotiation date excluded up to and including the actual maturity date of the bill of exchange; this period may…

When the amount of the transactions mentioned in articles R. 314-7 and R. 314-8 is less than an amount set by order of the Minister for the Economy and Finance, a flat-rate minimum fee may be charged for each transaction, which is not taken into account when determining the overall effective rate; the borrower must be informed of this minimum fee.

Where the granting of a loan is subject to a prior savings phase, the overall effective rate is calculated without taking account of this savings phase.

The annual effective rate of insurance referred to in article L. 312-7 is equal to the difference between: 1° The annual percentage rate of charge defined in article L. 314-1, calculated in accordance with articles R. 314-1 to R. 314-10 on the assumption that the insurance proposed for the purpose of repaying the credit is fully required by the lender, on the one hand, and; 2° The annual percentage rate…

The annual effective rate of insurance referred to in article L. 313-8 is equal to the difference between: 1° The annual percentage rate of charge defined in article L. 314-1, calculated in accordance with articles R. 314-1 to R. 314-10 on the assumption that the insurance proposed for the purpose of repaying the credit is fully required by the lender, on the one hand, and; 2° The annual percentage rate…

The annual effective rate of insurance is accompanied by a statement of the cover for which it includes the cost.

The effective annual rate of insurance is not mentioned for hire-purchase and hire-purchase transactions.