{"id":6437,"date":"2007-09-25T19:53:09","date_gmt":"2007-09-25T19:53:09","guid":{"rendered":"https:\/\/gregorydamy.niceavocats.fr\/?p=6437"},"modified":"2023-09-06T13:04:28","modified_gmt":"2023-09-06T13:04:28","slug":"the-bankers-duty-to-warn","status":"publish","type":"post","link":"https:\/\/gregorydamy.niceavocats.fr\/en\/the-bankers-duty-to-warn\/","title":{"rendered":"The banker’s duty to warn"},"content":{"rendered":"

[et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.19.5″ custom_margin=”||0px||false|false” custom_padding=”6px||0px||false|false” locked=”off” global_colors_info=”{}”][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”4.19.5″ _module_preset=”default” background_enable_mask_style=”on” background_mask_style=”wave” background_mask_color=”rgba(0,0,0,0.08)” custom_padding=”||6px|||” locked=”off” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][et_pb_circle_counter title=” Estimated reading time (in minutes)” number=”2″ percent_sign=”off” _builder_version=”4.20.2″ _module_preset=”default” title_font=”Amiri||||||||” max_width=”137px” global_colors_info=”{}”][\/et_pb_circle_counter][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.19.5″ _module_preset=”default” custom_margin=”||0px||false|false” custom_padding=”||0px||false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][et_pb_divider _builder_version=”4.19.5″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_divider][\/et_pb_column][\/et_pb_row][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”4px|||||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_image src=”https:\/\/gregorydamy.niceavocats.fr\/wp-content\/uploads\/2023\/07\/business-7111764_1280-2.jpg” title_text=”business-7111764_1280-2″ _builder_version=”4.21.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_text admin_label=”Text” _builder_version=”4.21.0″ text_font=”Amiri||||||||” header_2_font=”Amiri||||||||” header_3_font=”Amiri||||||||” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n

\n

For a decade, the first civil chamber and the commercial chamber disagreed on the issue of the liability of credit providers for granting credit deemed excessive in relation to the borrower’s repayment capacity.<\/span><\/h2>\n

As early as 1995, the first civil chamber of the Court of Cassation required the banker to submit to a duty to advise.\u00a0This consisted of \u201cwarning\u201d borrowers about the importance of the indebtedness linked to the loans taken out.\u00a0It therefore failed in its obligation to advise, even if the borrowers were fully aware of the risks they were incurring, having been informed of them by another credit institution, the banker who granted excessive credit.<\/span><\/p>\n

The scope of this duty and even the qualification adopted were controversial at the time.\u00a0Some authors have in fact qualified the duty of advice enshrined by the first civil chamber as a \u201cnegative duty\u201d, a duty which in reality amounted to a \u201cwarning\u201d.<\/span><\/p>\n

The commercial chamber had, for its part, expressly excluded the existence of such a duty, deciding that the banker, supplier of credit, is \u201cdebtor of no obligation to advise his client\u201d.<\/span><\/p>\n

Since 2002, the chambers of the\u00a0<\/span>Court of Cassation<\/span><\/a>\u00a0have spoken with one voice.\u00a0They agree, in several judgments (1 and 2) that when a banker has definitive information with regard to the financial situation of the borrower, the latter must, when concluding the contract , to warn of the dangers of the envisaged credit operation (in particular on the risks of indebtedness and the financial capacities of the borrower).<\/span><\/p>\n

The Commercial Chamber of the Court of Cassation will however put the kibosh, by a judgment of 2019 (3), on the limits of the banker’s duty to warn.\u00a0This one cannot, indeed, be condemned for the absence of warning of a risk which did not materialize.<\/span><\/p>\n