"Historic judgment": EU court declares millions of loan agreements to be unlawful - Kotaku In Action 2

"Historic judgment": EU court declares millions of loan agreements to be unlawful (translate.google.com)

posted 3 years ago by Hiromant 3 years ago by Hiromant +21 / -0

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– Hiromant [S] 2 points 3 years ago +2 / -0

In other words: If the clauses in a contract are not formulated in a clear and understandable way, the consumer can revoke the contract. In this case, consumers no longer have to pay off their remaining debts and are even entitled to repayment of their down payment and all monthly payments already made.

According to Christoph Herrmann from Stiftung Warentest, the judgment will help many debtors. "Most of them can now revoke their old loan agreements, even if it has been many years since the contract was signed," he said. The law firm Gansel Rechtsanwälte, which was involved in the proceedings, announced that almost all private consumer loans were affected by the ruling. "The only exceptions are consumer loans with a mortgage, especially real estate."

Did the EU just effectively cancel most consumer debt?

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– deleted 7 points 3 years ago +7 / -0

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– Hiromant [S] 1 point 3 years ago +1 / -0

Sounds to me like the decision declares most consumer loans in the EU illegal due to purposeful obsfucation of the terms by banks. In that case it may well be the banks who have to eat the costs as punishment. Looking at what's going on with Evergrande and the US debt ceiling, some new financial winds are in the air.

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– FuckGenderPolitics 1 point 3 years ago +1 / -0

Is the bank still considered the owner in this case? I don't know who technically owns a house still under mortgage, but assuming it's the bank I doubt the EU is looking to allow foreclosures when a debtor cancels a loan. If that's not made clear in the decision they're looking at a massive legal mess that the EU Court will have to rule on at some point, and everyone knows how they will rule. It looks like they throat cut the mortgage industry.