Debt, excessive debt, divorce... what is the statutory interest rate?

For the period from January 1 to June 30, 2024, the statutory interest rate applied to debts owed to individuals has risen significantly, reaching 8.01 percent, up from its previous level of 6.82 percent. This rate is the highest recorded in the past 30 years.

The statutory interest rate—which represents the amount owed by the debtor to the creditor in the event of late payment of a debt—rose significantly in the first half of 2024.

Between January 1 and June 30, 2024, the statutory interest rate applicable to debts between individuals—such as child support not paid on time—will increase from 6.82% to 8.01%. To find a comparable rate, one must go back to 1994, when the rate was set at 8.40%.

The penalty is calculated using the following formula: (amount due × number of days past due × statutory interest rate) / (365 × 100).

With regard to business receivables, the rate has also reached a record high since its introduction in 2015, standing at 5.07% for the first half of 2024, up from 4.47% previously.

If the amount due is not paid within two months of the judgment’s effective date, enhanced interest is charged for the period beyond that (starting from the date the judgment was served or the day the appeal period expired, if the judgment becomes effective after a delay).

Since 2015, the increased rate has been equal to the statutory interest rate plus 5 percentage points (8.01% + 5 = 13.01% in January 2024).

These statutory interest rates are used to calculate late-payment penalties, particularly in connection with claims arising from court decisions (divorce, excessive debt, etc.) or related to a loan when the contract does not specify the annual percentage rate (APR) for that loan.

In the case of a loan between individuals, the payment of interest is optional, as noted by Bpifrance Création. In the event of a late payment, the creditor may decide to impose penalties, which must not exceed the statutory interest rate.