The European Court of Justice ruled on the issue of Hungarian foreign currency loans, which another Good Finance client brought against the bank because it changed the exchange rate margin for its foreign currency loans during the term. The European Court of Justice will decide on this, but it has also been found out whether a foreign currency loan agreement is “unfair”.
A statement from the court states that anyone who is debt-denominated in a foreign currency must be aware of the economic risks that may lead to an increase in installments.
But what about the spread?
However, they may have a headache about the exchange rate premium, as the panel believes that the Hungarian court can decide whether the terms and conditions are fair. In this regard, the panel may also take a unity decision to facilitate further court work.
The opportunity to determine when it is necessary to clarify exchange rate
The communication states that the main objective of the European Court of Justice should be to preserve the validity of the contract. It is not contrary to the Hungarian court to restore unfair terms.
This gives the Hungarian court the opportunity to determine when it is necessary to clarify exchange rate gaps and when to compensate accordingly. The mansion can even do so in a uniformity procedure, which would simplify further litigation for foreign currency debtors.
The court’s full notice is:
Consumers who take out a loan denominated in a foreign currency must be able to appreciate the economic consequences of using a different exchange rate (foreign exchange rate) to repay the loan than that used to calculate the loan amount (foreign exchange rate).
The national court may replace the unfair term by a provision of national law in order to restore the balance between the parties to the contract and to maintain the validity of the contract.
The Unfair Contract Terms Directive requires that consumers are not liable for unfair terms in contracts with a seller or service provider. However, with regard to the main subject matter of the contract and the conditions governing the eligibility of the price or remuneration for the goods or services supplied for consideration, the Directive allows Member States to provide in their transposing national legislation that these conditions are not subject to unfairness assessment.