Almost every loan agreement is revocable
With its decision of 09.09.2021, the ECJ confirmed its previous case law! Almost every loan agreement is now revocable!
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ECJ enables "new" Withdrawal joker!
According to the latest decision of the ECJ of 09.09.2021 almost all loan agreements are revocable - even after many years!
The content of the contract is too complicated
The ECJ ruled on 09.09.2021 that many loan agreements for consumers are too complicated and therefore illegal. The court once again made it clear that an average consumer who has no specialist knowledge in the financial sector must easily see how high, for example, a prepayment penalty is. It must also be easy to see when you can get out of a loan agreement.
Revocation possible after many years
The highest European court also found that loan agreements can be revoked even after many years. It was criticized that many of the formulations in loan agreements are only written for experts. Consumers cannot see when the withdrawal period begins or expires. As a result, the statutory withdrawal period cannot begin to run, which enables withdrawal even after many years.
This can be of particular interest if the loan interest rates were very high at the time and better conditions can be expected with a new contract. Or the living conditions have changed and you no longer want to be tied to legacy issues.
ECJ confirms old case law
With a ruling of March 26.03.2020, 14, the ECJ ruled that a large number of loan contracts contain incorrect cancellation policy. In a proceeding between a consumer and a savings bank (Kreissparkasse Saarlouis), the ECJ decided that the cancellation policy used by the savings bank in the loan contract violates EU directives and is therefore incorrect. In particular, it was criticized that the information as to when the 14-day withdrawal period begins for the consumer was not given in a clear, concise form. This violates Art. 1 Para. 2 Subpara. 2008 of Directive 48/XNUMX / EC. The violation leads to the fact that the cancellation policy is incorrect, the cancellation period has not yet started and a cancellation is currently still possible.
ECJ revocation judgment
The defendant Sparkasse has the following in the loan agreement incorrect cancellation policy used:
"Right of withdrawal
The borrower can revoke his contract declaration within 14 days without giving reasons in text form (e.g. letter, fax, email). The period begins after the conclusion of the contract, but only after the borrower has received all the mandatory information in accordance with Section 492 (2) of the German Civil Code (e.g. information on the type of loan, information on the net loan amount, information on the contract term). ... "
Early loan repayment, early repayment penalty
With the cancellation joker you can pay off a real estate loan early without paying a high prepayment penalty to the bank.
| Loan amount | 300.000 € |
|---|---|
| Graduation year | 2011 |
| Remaining time | 5 years |
| saving | 47.592 € * |
Revoke car loan / car leasing
Take advantage of all legal options to stop your expensive car loan or private lease. Best of all, you can return your car to the bank and reclaim all the installments you have paid so far, as well as the down payment.
| Purchase price | 30.000 € |
|---|---|
| date of purchase | 01.05.2014 |
| Already paid | 17.400 € |
| You get back | 16.800 € * |
This clause is used by many banks and savings banks. For example, the Sparkasse Regensburg or Audi-Bank also uses such a clause.
So if your real estate financing, car leasing or financing contract also contains such a clause on the revocation period, contact a specialist lawyer for this purpose.
Specifically, the ECJ complained that it was not clear to the consumer when the withdrawal period would begin. For this, the consumer must get an overview of whether he has received the mandatory information in accordance with Section 492 (2) BGB. However, a look at section 492 (2) BGB alone does not help the consumer, since this provision refers to other provisions outside the BGB, namely Art. 247 sections 6 to 13 EGBGB. If the consumer was able to find (and also understand) these regulations, he will have to state, however, that these regulations refer to the regulations of the German Civil Code - a so-called "cascade reference".
The CJEU has now determined that with such an opaque chain of references, it is not clear to the consumer when all the mandatory information has actually been fulfilled and the 14-day revocation period begins to run. According to the CJEU, it is therefore not sufficient to refer to legal provisions in the cancellation policy that define the rights and obligations of the contracting parties. As a result, there is no proper instruction for the consumer according to the EU directive, which requires a clear and concise form.
If you have any questions about the ECJ decision, please contact Attorney Gabler, Attorney at Law Hendel as well as lawyer Kaltenegger personally at our locations in Regensburg and Landshut, otherwise also by telephone or e-mail.
General information on the revocation of a loan agreement
The law firm Gabler & Hendel has specialized in the successful enforcement of consumer rights. Our lawyers, who are experienced in consumer protection law, will explain the most important points to you:
How does the cancellation of the loan contract work?
The revocation of the loan contract may still be possible after the generally 14-day revocation period if the revocation instruction is incorrect (so-called revocation joker).
What are the advantages of revocation?
Withdrawing a loan saves prepayment penalty, for example. If a prepayment penalty has already been paid, the bank may be able to claim it back under certain circumstances. Because in the event of revocation, the bank is not entitled to prepayment penalty.
At the same time, a further advantage of loans that have not yet been repaid is that the revocation gives you the opportunity to negotiate new terms with the bank. Due to the currently low interest rates, many thousands of euros can often be saved. So you can "debt reschedule" at a reasonable price.
What does the consultation cost me?
You will receive one from us free initial assessment to check your loan contract. If we come to the conclusion that your credit / loan contract can still be revoked, we will inform you transparently and openly about possible cost risks. If you have legal protection insurance, this usually covers the costs of your legal representation. As a rule, it is not necessary that the legal expenses insurance already existed when the loan contract was concluded.
If the credit institution / bank does not accept the revocation and the matter needs to be clarified in court, the credit institution / bank will bear your costs if successful.
What must be considered when withdrawing?
If your loan contract contains incorrect cancellation information and you can cancel it for this reason, you should not wait too long. For example, banks can now “correct” incorrect revocation instructions by subsequently rectifying the faultiness decided by the ECJ.
