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Rights of the guarantor In a significant judgment of November 15, 2017 ( Cass. com., November 15, 2017, n° 16-16790 ), the commercial chamber of the Court of Cassation affirmed that banks have the obligation to inform and Notify Guarantors When Committing to Guarantee a Loan. As a specialized lawyer in Nice, I can assist you in questioning your commitment as a guarantor .
Information obligation of banks: protection of the rights of guarantors: –
In this case, a bank granted a loan of 60,000 euros to a company to finance the acquisition of a business. The bank has secured its position with a pledge and joint surety from the manager.
When the manager ran into financial difficulties and was unable to repay the loan, he sought to hold the bank responsible for failing to give adequate warning. The bank’s liability is at stake if it fails to inform the guarantor, who may lack financial expertise, of factors such as the high probability of failure, the inadequacy of the loan with the financial capacities of the borrower and the guarantor, or the risk of over-indebtedness resulting from the guaranteed loan.
Challenge the actions of the bank: challenge the responsibility of the guarantor: –
The Court of Cassation recalls the significant responsibility of banks when granting loans, in particular when they require a guarantee from the guarantor. Often, individuals who stand as guarantors commit without fully understanding the implications, which can lead to difficult financial situations, including over-indebtedness.
At our law firm, we assist you in challenging bank actions relating to guarantees, ensuring that your rights as a guarantor are protected. We understand the complexities involved and can guide you through the legal process, working to protect your financial well-being .
