Banking, Contracts, Mortgage, “French” repayment plan, Supreme Court of Cassation, United Sections, judgment n. 15130 of 05/29/2024

Bank loan – “French” repayment plan – Failure to indicate the “compound” capitalization regime of interest – Indeterminacy or indeterminability of the contractual object and violation of the regulations on banking transparency – Nullity – Exclusion.

The civil United Sections – ruling on a question subject to a preliminary ruling pursuant to art. 363-bis c.p.c. – stated the following principle:

«In terms of a bank loan, at a fixed rate, with installment repayment of the loan regulated by a “French-style” repayment plan of a traditional standardized type, the failure to indicate the repayment method and the payment regime is not a cause for partial nullity of the contract. “compound” capitalization of debt interests, due to indeterminacy or indeterminability of the object of the contract nor due to violation of the legislation on the transparency of contractual conditions and relationships between credit institutions and customers.”

Source Supreme Court of Cassation