The Law No. 78-22 of 10 January 1978 relating to information and the protection of consumers in the area of certain credit transactions , called Scrivener Act I named Secretary of State for Consumer Affairs Christiane Scrivener , is a French law aimed at improving consumer information and protecting it throughout the repayment of its loans. It reinforces the protection of the borrower but also co-borrowers and people who have taken sureties. It will be supplemented by the Scrivener II law .
Scope of the law
The law applies to credit consumption and construction works undertaken by individuals for amounts of 200 € to 75,000 € in May 2011 following the reform of consumer credit (and not for amounts over € 21,500 ) and for a period longer than 3 months. The law also applies to sales or services for which payment is staggered or deferred.
Summary of the law
The law imposes on lenders a minimum of information and protection for the borrower:
- The obligation to formalize the prior offer of credit by a contract delivered to the borrower and the co-borrowers and any securities.
- Mandatory information on the offers: identity of the praetor and the borrower, the conditions of the credit (amount, annualized TEG (APR), duration …), the amount to be refunded (with and without insurance), the amount of the fees and the final total cost.
- The conditions included in the prior offer are considered valid for a minimum period of 15 days after the date of issue.
- The submission of a provisional schedule showing the share of insurance, capital reimbursed and remaining capital of each month,
- In case of early repayment, there is no charge or penalty (the Lagarde law provides for possible penalties from 10,000 euros of prepayment).
- Withdrawal period of 7 working days after the signature of the offer (reduced to 14 working days since May 2011 according to the consumer credit reform initiated by Christine Lagarde) by the purchaser (Reduced time to 3 days for appropriations affected if the borrower expressly requests this in writing).
As a result, the Scrivener law extends the debit of the accounts of individuals by imposing on the bank at the end of 90 days of consecutive debit, the setting up of a formal overdraft offer.
In practice, banks limit the duration of overdrafts between 15 and 25 days on average per month (now known as the cash facility). The newsletter and are sent to customers in constant flow, successively sent the 25 th day and the 40 th and the 50 th . At the 60 th day of permanent debit higher than 500 € , a formal notice is sent by the bank, then 90 days, without formalized overdraft offer, the client will be registered with the FICP (Credits Incidents File to Individuals) for a duration of 5 years.