Consumer credit, the bank is not responsible for everything

In principle, the bank which would have released the funds of a consumer credit too early, before the seller has fully performed his obligation or without verifying that the forms of the contract complied with the law, may be deprived of the right to reimbursement, judges the Court of Cassation.

But any difficulty encountered in executing such a sale cannot be blamed on the banker, the court observed.

In this case, an individual had had the bank finance the purchase and installation of photovoltaic panels. These facilities financed on credit have been the source of numerous lawsuits. This time, following a disagreement with the installer over the handling of the final connection, this last step had not been carried out and the installation could not be commissioned.

The bank, said the borrower, should have found that the promised service was incomplete. It therefore committed a fault by financing the operation and is no longer entitled to reimbursement.

But the borrower is wrong, concluded the Court of Cassation, because there is no reason to judge that the installation was not carried out correctly and in accordance with the contract. It was the refusal to pay for the connection that caused the borrower his difficulties. It is because of him that the contracts were finally canceled and, in this case, he cannot blame the credit institution.

The bank must pay only after the completion of the works, when their compliance with what was planned can be found, the Court had already said last February. She then added that if everything had gone as planned, if the purchaser was satisfied, no reproach could be made to the banker who would have made a mistake by paying too early or by paying without carrying out the mandatory checks.

(Cass. Civ 1, 7.10.2020/18/20.664, G XNUMX-XNUMX).