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Case detail

Directive article National ID Cour de Cassation, première chambre civile, N° 05-20176
Country France Decision date 22/01/2009
Common name Decision type Supreme court decision
Court Cour de Cassation, première chambre civile Plaintiff(s) Mrs. BETTON
Court translation Supreme Court, civil section N° 1 Defendant(s) Caisse de Crédit Mutuel de Saint-Marcellin
Subject enforcement
Keywords Consumer Credit Directiveenforcementfinancial services

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Headnote

A court is entitled to automatically enforce the violation of consumer-protection provisions, even though no party to the case requested such enforcement.

Facts

A French bank granted a loan in the amount of 23.000 EUR to an individual whose bank account was overdrawn (i.e., had a negative balance).  The borrower did not repay the loan. In respect of the overdrawn bank account, the bank did not make a credit offer that complied with the requirements of the French Consumer Code, even though the bank account had been overdrawn for more than three months (it being specified that under French law an overdraft constitutes a loan, which must comply with the requirement provided in the Consumer Code when such overdraft exceeds three months).

Legal issue

Can a court apply a provision of the French Consumer Code without any party invoking such application?

Decision

Under article L. 141-4 of the French Consumer Code, a court is entitled to automatically enforce the provisions of the Consumer Code, even when no party to the case requested such enforcement.

  URL Decision Decision full text
EN N/A Click here
FR http://www.legifrance.gouv.fr/affichJuriJudi.do?oldAction=rechJuriJudi&idTexte=JURITEXT000020181505&fastReqId=2049255597&fastPos=1 Click here

Result

The bank was barred from receiving interest.

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