Caixabank (Judgment) French Text [2020] EUECJ C-224/19 (16 July 2020)

Caixabank (Judgment) French Text [2020] EUECJ C-224/19 (16 July 2020)

National courts cannot limit the restitutive effects of declaring a clause abusive unless national default rules would impose the same costs on the consumer; clauses imposing all mortgage costs on the borrower are abusive if not individually negotiated; opening commission clauses are subject to unfairness and transparency review unless they are part of the contract's main object and drafted transparently; limitation periods may restrict restitution claims if compatible with EU law; national courts must ensure full consumer protection as required by Directive 93/13/CEE.

Citation
[2020] EUECJ C-224/19
Parties
Applicant: CY; Respondent: Caixabank SA; Applicant: LG; Applicant: PK; Respondent: Banco Bilbao Vizcaya Argentaria SA
Jurisdiction
European Union
Judgment Date
16 July 2020
Procedural Posture
Preliminary Reference (joined Cases C 224/19 and C 259/19) / Judgment
Outcome
Questions answered; guidance provided to national courts on interpretation of Directive 93/13/CEE.
Legal Topics
Unfair Contract Terms, Mortgage Loans, Restitution, Transparency of Contract Terms, Allocation of Costs, Prescription/limitation Periods, Judicial Powers in Consumer Contracts
European Union Law Consumer Protection Contract Law Unfair Contract Terms Mortgage Loans Restitution Transparency of Contract Terms Allocation of Costs +2 more

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Parties

CY

Applicant

Caixabank SA

Respondent

LG

Applicant

PK

Applicant

Banco Bilbao Vizcaya Argentaria SA

Respondent

Procedural Posture

Preliminary Reference (joined Cases C 224/19 and C 259/19) / Judgment

Legal Issues

  1. 1 Whether national courts may limit the restitutive effects of declaring a mortgage cost clause abusive under Directive 93/13/CEE
  2. 2 Whether a clause imposing all mortgage constitution and cancellation costs on the borrower is abusive
  3. 3 Whether a mortgage opening commission is subject to unfairness and transparency control

Ratio Decidendi

National courts cannot limit the restitutive effects of declaring a clause abusive unless national default rules would impose the same costs on the consumer; clauses imposing all mortgage costs on the borrower are abusive if not individually negotiated; opening commission clauses are subject to unfairness and transparency review unless they are part of the contract's main object and drafted transparently; limitation periods may restrict restitution claims if compatible with EU law; national courts must ensure full consumer protection as required by Directive 93/13/CEE.

Court Disposition

Questions answered; guidance provided to national courts on interpretation of Directive 93/13/CEE.

Orders

  • Article 6(1) and Article 7(1) of Directive 93/13/CEE preclude national courts from refusing restitution of amounts paid under abusive clauses unless national law would impose such costs absent the clause.
  • Clauses imposing all mortgage constitution and cancellation costs on the borrower are abusive if not individually negotiated.