Status: 09.09.2021 4:31 p.m.
The European Court of Justice has strengthened consumer rights in credit agreements. Most customers can thus revoke old credit agreements, even if the contract was signed years ago.
An “unbelievable verdict,” say lawyers who are well versed. The decision of the European Court of Justice (ECJ) is a “milestone” for a large number of loan agreements in Germany. The ECJ had to judge the small print in car loan agreements of the VW Bank, the Skoda Bank and the BMW Bank and says very clearly: What is in there is not enough to protect consumers from disadvantage. European law demands more.
As early as March 2020, the supreme court of the EU had clearly criticized loan agreements in Germany. These are far too indistinct. Consumers could not see from the small print when they can withdraw from a contract.
The content of the contract must be easy to understand
Now it was about other clauses in the contracts, for example how much interest is to be paid if the customers are in default, i.e. no longer transfer their installments on time. Here, too, the ECJ says: What is there in the contract must be easy to understand for an average consumer who has no specialist knowledge in the financial sector. He must be able to calculate for himself how expensive it will be if he does not pay his installments on time.
The top judges in the EU are also not satisfied with the so-called early repayment penalty. One must be able to easily see what has to be paid if one withdraws from the contract prematurely.
Revocation possible even after years
What the ECJ complains about in detail about the small print is more something for experts. The main message for consumers is that there are very many contracts with flaws, and it is because of these flaws that the two-week cooling-off period has not started. That means: The customer can still withdraw, withdraw from the contract. Even if the contract was signed years ago.
This can be interesting if the loan interest on the original contract was very high and would have been much less payable on a new contract. Or if the living conditions have changed and you no longer want to be bound by the contract. Also important is: It’s not just about car loans. Many other loan agreements may also be flawed – the one for a new sofa or for a vacation. Different rules only apply to real estate loans. The European Court of Justice did not deal with that.
Advice on loan exit necessary
If you are thinking about getting out of your loan, you definitely need advice. Because legally that’s a bit tricky. It is advisable to first obtain an assessment from a consumer advice center or similar body. Not every full-bodied promise made by a law firm can be trusted: First of all, you should have someone check whether it really gives you money back.
The whole thing is also interesting because the question arises of how Germany’s highest civil court stands on the matter. So far, the Federal Court of Justice has always slowed down to the detriment of consumers. Among other things, the Karlsruhe court had said that it was illegal if the customers rely on false information in the contract to get out. But the announcement from Luxembourg is now very clear: if consumers have not been properly informed, they have every option under European law. You can invoke any error. They must not be denied that.
AZ: C-33/20, C-155/20 and C-187/20