The addition of late interest to the outstanding capital is certainly provided for by the Civil Code but it would be contrary to the Consumer Code which prohibits, in the event of early repayment, imposing additional compensation or costs, indicated the Court. of cassation.
The judges thus ruled in favor of a borrower who thought of acquiring new apartments for rental but had failed to meet his loan deadlines.
The capitalization of late interest causes an increase in the sums to be repaid and the consumer code strictly lists the indemnities or compensation that the professional lender can claim in the event of late maturities, explained the magistrates.
No compensation or cost other than these can be charged to the borrower when, following failures in its repayments, the bank requires early repayment, states the consumer code.
(Cass. Civ 1, 22.3.2023, A 21-14.666).
