EU law does not preclude consumers from seeking compensation from the bank that goes beyond repayment of the monthly instalments paid if a mortgage loan contract tainted by unfair terms is annulled, according to a judgment by the Court of Justice of the EU published on Thursday 15 June (case C-520/21).
On the other hand, EU law prevents the bank from asserting similar claims against consumers.
A Polish judge has asked the Court of Justice whether the Unfair Contract Terms Directive, together with the principles of effectiveness, legal certainty and proportionality, allow the parties to a mortgage loan contract, annulled on the grounds that it cannot survive after the unfair terms have been removed, to claim compensation going beyond the repayment of the amounts respectively paid on the basis of that contract, together with the payment of default interest at the statutory rate from the date of notice.
According to the Court, the possibility of a consumer asserting claims against the bank going beyond the repayment of the monthly instalments paid does not appear to compromise the objectives of Directive 93/13/EEC on unfair terms in consumer contracts. Furthermore, the directive precludes the bank from requesting compensation from the consumer that goes beyond the repayment of the capital paid in and the payment of statutory default interest.
The Court considers that granting such a right would help to eliminate the deterrent effect on professionals. In addition, it considers that the argument relating to the stability of the financial markets is irrelevant to the interpretation of the Directive, which is designed to protect consumers.
Link to the judgment: https://aeur.eu/f/7ia (Original version in French by Lionel Changeur)