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Abstract

Long ago, the French courts did not hesitate in recognizing the bank's liability toward its debtor based upon its failure to warn the debtor especially when the loan did not fit the debtor's financial ability. As a result of that judicial precedent, the French legislature, recently, adopted the bank's responsibility towards its debtor in providing the loan in the Consumer Protection Act. Therefore, when a contract is concluded between a professional and a consumer (Consumer Loan Contract), the bank is obliged to clarify all financial details to a consumer (debtor). In addition, the bank is obliged to verify the consumer's financial ability with the help of the inquiry tools provided by the Consumer Protection Act. On the Kuwaiti legal side, the legislature imposed some professional obligations on banks. These banks must respect these obligations in the consumer loans context. These obligations require every bank, before deciding its decision toward the debtor, to request an inquiry concerning the debtor's financial ability on the basis of the rules governing the process of loan granting. The bank's responsibility is taken away if it does not fulfill its obligations

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