Rights of borrowers and lenders after the closure of a platform
A protective legal framework for all parties
The closure of a crowdfunding platform does not create a legal vacuum. Loan contracts concluded between borrowers and lenders survive the disappearance of the intermediary. This fundamental principle is reinforced by the European PSFP regulation, which imposes continuity mechanisms precisely to guarantee the respect of everyone's rights.
Understanding your rights and obligations in this context is essential, whether you are a lender or a borrower.
The rights of lenders
The right to a refund
The most fundamental right of the lender is the right to reimbursement according to the terms of the signed contract. The closure of the platform does not change the conditions of the loan in any way: interest rate, amortization schedule, amount of installments. The borrower remains required to repay the loan taken out in full.
The right to information
Lenders are entitled to a clear and complete information on the modalities of the transition. This includes the identity of the acquiring provider, contact details, how to access the new online space, and the transition schedule. This information must be provided within a reasonable period of time prior to the effective cessation.
The right to access data
In accordance with the GDPR, lenders keep their right of access to all the data concerning them: contracts, schedules, payment histories, correspondence. The fire management provider must be in a position to respond to these requests.
The right to fair treatment
In the event of difficulty in recovering from a defaulting borrower, lenders should be treated in a manner equitable and non-discriminatory. The recovered funds are distributed proportionally between the lenders concerned.
Borrowers' obligations
The obligation to reimburse
Closing the platform does not extinguish the debt. The borrower remains required to repay the loan in accordance with the contractual schedule. The change of manager is not a legitimate reason for stopping or deferring payments.
The obligation to cooperate
The borrower must cooperate with the new manager : provide the information requested, keep your bank details up to date, report any change in situation that may affect your ability to repay.
The KYC update requirement
If the receiving provider requests an update of the identity verification information, the borrower is required to comply with this request within the allotted time. This obligation derives from the anti-money laundering regulations applicable to the new manager.
Remedies in case of difficulty
If the transition does not go well, the parties have several options for redress:
- Complaint to the fire management provider : first step, the internal processing of complaints is mandatory
- Referral to the mediator : if the complaint is unsuccessful, a consumer mediator can be contacted free of charge
- Reporting to the AMF or the ACPR : regulators can be alerted in the event of a serious breach by the service provider
- Legal action : as a last resort, the competent courts may be brought before the competent courts to assert contractual rights
The protective role of professional fire management
The use of a professional fire management provider such as Runoff is in itself a protection for borrowers and lenders. The solution offers transparent dedicated spaces, flow automation that reduces the risk of error, and permanent regulatory compliance.
The expertise of Capsens, which has built and operated numerous crowdfunding platforms, guarantees a thorough understanding of the rights and obligations of each party. Runoff processes are designed to strictly comply with the applicable legal framework.
The closure of a platform does not suspend any rights and does not cancel any obligation. The legal and regulatory framework assures each party that its interests will be respected until the last loan is extinguished.
