Section 3: Training of lenders and intermediaries

The training referred to in Article L. 314-25 allows, as a minimum, to acquire under the pre-established programme mentioned in article L. 6353-1 of the Labour Code:

1° The knowledge required for the distribution of consumer credit:

a) The nature and characteristics of the various forms of consumer credit that the trainee is likely to market, distinguishing between the financing needs that they are likely to meet;

b) Analysis of the financial characteristics of consumer credit, in particular: the borrowing rate; the annual percentage rate of charge; the total cost of the credit; the duration of the credit; the total amount owed by the borrower; the total amount of the credit; the amount, number and content of the instalments; for leases with a purchase option, the amount of the lease payments and the purchase price if the option is exercised;

c) The loan guarantee arrangements and the conditions under which the guarantee operates, including those for borrowers' insurance;

2° Knowledge, for the various forms of consumer credit that the trainee is likely to market, of the rights and obligations of the borrower and of the spouse who is not a co-borrower, in particular:

a) Between the formation of a credit agreement and the granting of a loan a) Between the formation of a credit agreement and the time when it becomes perfected, in particular under Articles L. 312-18 to L. 312-27 ; L. 312-50 to L. 312-54 and L. 312-62 ;

b) During the performance of the credit agreement, in particular under articles L. 312-31 to L. 312-40 and articles L. 312-68 to L. 312-83 ;

3° The knowledge and care to be taken and the explanations to be provided to ensure that the borrower is properly informed, in particular:

a) The explanations to be provided to the borrower to enable him to understand the content of the sheet referred to in Article L. 312-12 ;

b) Drawing up the form referred to in Article L. 312-17, in particular the requests to be made to the borrower to gather the information required for this purpose;

c) The explanations to be provided to the borrower to enable him to understand the essential characteristics of the credit proposed and the consequences that the credit may have on his financial situation, including in the event of default;

d) The explanations or warnings to be provided to the borrower to enable him to understand the essential characteristics of the credit proposed and the consequences that the credit may have on his financial situation, including in the event of default d) The explanations or warnings that may be given to the borrower prior to the creditor's analysis of his creditworthiness, based on the information gathered at the point of sale about his income and expenses, in order to enable him to choose a purchase and a request for finance suited to his needs, preferences and situation;

e) The provision of the offer of credit to the borrower in the event of default on payment. e) The provision of the credit agreement offer and the explanations to be given to the borrower to enable them to understand its content, in particular that of the box referred to in Article L. 312-28;

f) The explanations to be given to the borrower to inform him of the rights and obligations referred to in a and b of 2° and in particular to warn him of the consequences of a possible default on payment;

4° The knowledge and steps needed to prevent over-indebtedness:

a) A presentation of the characteristics of over-indebtedness situations;

b) Explanations and warnings that may be given to borrowers at risk of over-indebtedness, if they are considering whether to apply for credit or make a cash purchase, and what type of financing they are likely to request;

c) A presentation of the main principles of procedures for dealing with over-indebtedness, and in particular the risk to which the lender is exposed in the event of the borrower becoming over-indebted, in particular the possibility for over-indebtedness commissions to cancel all or part of the debts contracted by the borrower;

5° Knowledge of offences and breaches relating to non-compliance with the rules set out in Chapter II of Title I of Book III of this Code and their penalties.