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Lagarde Law

Last Updated on Wednesday, 25 May 2011 15:07 Written by Administrator Tuesday, 24 May 2011 06:49

Application Criteria

The law applies to any credit transaction and to bail out such operations (loan, overdraft, revolving credit or overdraft facility) in the following cases:

• The amount of credit: credit is between 200 euros and 75,000 euros (instead of a current maximum of 21 500 euros).
• The credit period, the law applies in full for loans in excess of three months and in part for loans of between one month and three months.

Transactions covered by the law lagarde

• the law applies to transactions or contracts whereby a creditor grants or promises to grant credit to the borrower in the form of a deferred payment, loan, including the form of overdraft or other facility similar payment
• are also in the scope of operations to carry out repairs, improvement or maintenance of a building when the credit is granted regardless of the acquisition of the building and this at 75 000. In addition, the law on the mortgage applies.
• operations group of credit (regardless of amount). On this point cf. § 24. Credits within the scope of formalized by notarial deed (which are now excluded from the scope)
• Credits notarized (previously excluded) and loans secured by real estate collateral (mortgage) that the directive to exclude, that the authorities have not detained in France.

Exclusions

Are excluded from the scope of the law:

• Loans of less than 200 euros and above 75 000 euros,
• Credit operations for the purpose of acquiring or retaining property rights or enjoyment of an existing building or construction,
• operations to carry out repairs, improvement or maintenance of a building when the credit is granted in connection with the acquisition of the building,
• Operations granted in the form of an overdraft be repaid within a month. This concerns for example the overdraft facility.
• Credit transactions with a repayment period not exceeding three months are not subject to any interest or fee or charge only a negligible amount. Given the very notion necessarily imprecise and subjective "costs a negligible amount"
• The advances of wages made by a company to its employees or loans outstanding to personal
• Loans for investment in financial instruments (eg DTH), credits redevelopment as part of the first phase of a process of debt distress. It would be no need to formalize a new contract with the borrower and guarantors in the context of a debt (which will keep the collateral and the ADI), the rescheduling agreements of a debt or default of payment made as part of an amicable treatment of late payments, provided that no additional costs to those provided in the original contract are charged to the borrower. Attention in these cases some banks apply additional charges related to restructuring are included: fees, higher interest rates, guarantee fees, the agreement enters into the scope of the law.
• The deferred debit cards at most 40 days out in principle the scope since no other fees are charged the fee. Conversely, if costs other than dues are paid, the charge cards are within the scope of the law.