French Consumer Code
In forceThe borrower may at any time, at his or her own initiative, repay the credit granted to him or her early, in whole or in part. In this case, interest and charges relating to the remaining term of the credit agreement are not due.
No early repayment indemnity may be claimed from the borrower in the following cases:
1° In the case of overdraft authorisation;
2° If the early repayment has been made pursuant to an insurance contract intended to guarantee repayment of the credit;
3° If the early repayment occurs during a period when the borrowing rate is not fixed.
In other cases, where the amount of early repayment exceeds a threshold set by decree, the creditor may demand compensation not exceeding 1% of the amount of credit subject to early repayment if the period between early repayment and the end date of the credit agreement exceeds one year. If the period does not exceed one year, the penalty may not exceed 0.5% of the amount of credit repaid early. In no case may any indemnity exceed the amount of interest that the borrower would have paid during the period between early repayment and the initially agreed end date of the credit agreement.
No indemnity other than that mentioned in this article nor any costs may be charged to the borrower in the event of early repayment.
Article L312-34
French Consumer CodeIn force
Updated 8 Nov 2023
