#62024CJ0903EU court backs consumers’ right to interest after unfair foreign-currency loan terms
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Consumers can claim statutory default interest when a bank must repay money collected under a foreign-currency loan contract that is void because of unfair terms. The ruling matters for borrowers and banks in disputes over foreign-currency loans, especially where consumers seek repayment after a court finds key contract terms unfair. The Court makes clear that national rules or case-law must not make it too hard for consumers to recover interest. If a system only grants interest from the moment the consumer sends a payment demand with a specific amount, that approach must still protect consumers effectively and discourage banks from using unfair terms.
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Key Changes
- Confirms that consumers may seek statutory default interest on repayments owed after an unfair foreign-currency loan contract is voided.
- Requires national rules on interest claims to preserve effective consumer protection under EU unfair terms law.
- Signals that banks should not benefit from procedural rules that weaken the deterrent effect against unfair contract terms.
Obligations
What this law requires
EU law requires national rules on statutory default interest in restitution claims following a void consumer loan contract with unfair terms to preserve the effectiveness of consumer rights under Directive 93/13/EEC and to maintain a dissuasive effect against sellers or suppliers using unfair terms.
Where a bank must repay sums collected under a foreign-currency consumer loan agreement declared void because of unfair terms, EU law supports the consumer’s ability to claim statutory default interest on those repayable amounts, subject to national procedural rules that do not make recovery excessively difficult.
National case-law requiring statutory default interest to run only from service of a consumer’s payment demand specifying the claim amount is permissible only if it does not undermine the effective protection of consumers or weaken the deterrent effect of the prohibition on unfair contract terms.