(1) To the extent that the borrower is in default in making payments owed on the basis of the consumer credit agreement, the borrower is to pay interest as stipulated in section 288 (1) on the amount owed. In an individual case, the lender may prove that the damage was greater or the borrower may prove that the damage was less.
(2) Interest incurred after default has occurred is to be booked to a separate account and may not be paid into a current account together with the amount owed or other claims of the lender. Section 289 sentence 2 applies with regard to such interest, subject to the proviso that the lender may only demand damages up to the amount of the statutory rate of interest (section 246).
(3) Payments by the borrower that are insufficient to repay the entire debt due are credited, in derogation from section 367 (1), first, towards costs of litigation, then towards the remainder of the amount owed (subsection (1)) and finally towards interest (subsection (2)). The lender may not reject partial payments. Limitation of the claims to repayment of the loan and interest is suspended from the date on which default begins under subsection (1) until they are established in a manner described in section 197 (1) nos. 3 to 5, but not for longer than 10 years from the date on which they come into existence. Section 197 (2) does not apply to claims to interest. Sentences 1 to 4 do not apply insofar as payments are made in response to judicially enforceable instruments the main claim of which is for interest.
(4) In the case of consumer credit agreements relating to immovable property, the default rate of interest for the year is, in derogation from subsection (1), 2.5 percentage points above the basic rate of interest. Subsections (2) and (3) sentences 1, 2, 4 and 5 are not to be applied to consumer credit agreements relating to immovable property.