You hold a real estate credit or a consumer credit for the purchase of a car, to finance work or simply to increase your cash, take advantage of the lowering of the legal interest rate to check your credit and possibly recover some of your loan interest.
The new legal interest rate, corresponding to the second half of 2016, was published in the official journal on Sunday 3 July. Due to lower interest rates, we learn that the legal interest rate is falling slightly. Indeed, it was 1.01% for the first half of 2016 and falls below 1% to 0.93% to be exact. As a reminder, this legal interest rate of 0.93% for the second half of 2016 applies to litigation with legal persons and administrations. Between individuals, especially for a delay of payment of support, the legal interest rate is now 4.35% against 4.54% for the first half of 2016.
Here is the history of the legal interest rates of the last 10 years:
- 2016 (2nd half): 0.93%
- 2016 (1st half year): 1.01%
- 2015 (2nd half): 0.99%
- 2015 (1st half year): 0.93%
- 2014: 0.04%
- 2013: 0.04%
- 2012: 0.71%
- 2011: 0.38%
- 2010: 0.65%
- 2009: 3.79%
- 2008: 3.99%
- 2007: 2.95%
- 2006: 2.11%
TEG error of a mortgage
Here is the example of a potential gain in the event of a TEG error in the credit of a person who verified in January 2016 his credit of 90,000 euros from June 2014. For more details, we invite you to consult our file dedicated to the TEG error .
We always issue a hypothetical A and B potential gain in case of TEG error in order to anticipate the judges’ claims if the procedure is to go to court. According to the judges, the calculation of the amount to be repaid by the bank must be done year by year (more complex calculation) or simply the difference between the nominal rate of credit and the legal interest rate of the subscription year. . It was customary to take Hypothesis A (year by year) but the trend reversed from 2015 with the large number of files to be processed. Judges now opt for simplicity and pragmatism.
Hypothesis A) If the legal interest rate is substituted year by year at the conventional rate, the sums wrongly deducted from the loan from June 2014 to January 2016 inclusive amount to € 2,469.18 according to the table below. calculation below:
|Year||Conventional rate||Interest collected at the conventional rate||Legal rate||Interest at the legal rate||Amount to be refunded|
|2015 (6 months)||2.59%||1,163.68||0.93%||417.85||745.83|
|2015 (6 months)||2.59%||1,114.04||0.99%||426.59||689.45|
|2016 (1 month)||2.59%||179,55||1.01%||70.02||109.53|
Assumption B) If the legal interest rate used for the entire period is the loan’s date of conclusion (ie 0.04% for 2014), the sums wrongly deducted from the loan from June 2014 to January 2016 included amounted to € 3,345.66 according to the table below:
|Period||Conventional rate||Interest collected at the conventional rate||Legal rate||Interest at the legal rate||Amount to be refunded|
|06/2014 to 01/2016 included||2.59%||3,398.14||0.04%||52.48||3,345.66|
Thus the potential gain for this erroneous credit varies between € 2,469.18 and € 3,345.66
Check the TEG of your credits
Note that we can now analyze any type of loan. Therefore, consumer credit, for the purchase of a car (new or used), to finance work or simply to increase your cash can be sent to us. As with mortgages, success in court is much greater when the credit is less than 5 years.
The information of CF Credit and its publications are given for educational purposes. In no case do they constitute investment recommendations. The reader should study the risks before making any transaction. He is solely responsible for his investment decisions.