Type: Judgment

Authority: European Authorities: Euopean Union' Court of Justice

Date: 03/26/2019

Subject: The Court affirmed that Directive 93/13/EEC on unfair terms in consumer contracts precludes an accelerated repayment clause of a mortgage loan contract that has been found to be unfair from being maintained in part, with the elements which make it unfair removed, where the removal of those elements would be tantamount to revising the content of that clause by altering its substance,. However, this Directive does not preclude the national court from compensating for the invalidity of such an unfair term by replacing that term with the new wording of the legislative provision on which it was based, which is applicable where the parties to the contract so agree, provided that the mortgage loan contract in question cannot continue in existence if that unfair term is removed, and that the annulment of the contract in its entirety would expose the consumer to particularly unfavourable consequences

Parties: Abanca Corporación Bancaria

Classification: Solidarity - Art. 38 Consumer protection

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