French Consumer Code
In forceThe creditor or credit intermediary shall provide the borrower, free of charge, with adequate explanations to enable the borrower to determine whether the credit agreement or agreements offered and any ancillary services are suited to the borrower's needs and financial situation.
These explanations include in particular:
1° The information contained in the European Standardised Information Sheet referred to in Article L. 313-7, as well as, for credit intermediaries, the information requirements set out under article L. 519-4-1 du code monétaire et financier ;
2° The main characteristics of the loan(s) and ancillary services offered;
3° The specific effects that the loan(s) and ancillary services offered may have on the borrower, including the consequences of a default by the borrower, particularly in the event of the guarantees being realised. Where the guarantee consists of a surety bond granted by a professional surety organisation, the creditor shall inform the borrower of the nature, beneficiaries and conditions under which this may be invoked and the consequences for the borrower;
4° With regard to any ancillary services linked to the credit agreement, an indication of whether or not it is possible to terminate each component separately and the implications of such a procedure for the borrower.
