Advertisement

France: the taux d'usure, republished every quarter

A French card balance is usually a credit renouvelable, revolving credit, and it is governed by the taux d'usure: a legal ceiling above which a rate is usurious and the lender commits an offence. The Banque de France publishes a new set of ceilings every quarter, derived from the average rate lenders actually charged in the preceding quarter plus a third.

Two things follow that surprise people used to a fixed cap. First, the ceiling moves: a rate lawful when the credit was taken out can be above the ceiling published three months later, and it is the rate at the moment of contracting that counts. Second, there is not one ceiling but several, banded by the size of the credit, with small credits allowed the highest rate. The figure the calculator opens on sits in the small-credit band, which is where most card balances fall.

Issuers typically require about 3% of the balance a month, with the interest taken from within that payment and a floor of about €15. Credit renouvelable is also subject to a statutory maximum repayment term, so a French revolving balance cannot legally run as long as the minimum-payment arithmetic on an American card implies.

For how the calculation works, the formula behind it and what it leaves out, see the full guide.

Data sources

This calculator in other countries

Each country has its own rates, thresholds and rules, and its own page with the official sources they came from.

CentExact Editorial · Research & verification

Every CentExact calculator is built from the published finance formula, tested against spreadsheet, lender and tax-authority figures, and reviewed when the underlying rates or rules change.

How we build and test our calculators

This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.