CJEU on consumer credit information
In its judgement in case C66/19, the Court of Justice of the EU (CJEU) held that it was unacceptable for a credit agreement to provide obligatory information merely by referring to a provision of national law that itself refers to other legislative provisions. Under obligatory information the court also included the calculation of the period/time limit for the withdrawal from the agreement.
The CJEU’s answers to the prejudicial questions referred to it by German regional court as regards information to be included in consumer credit agreements state that:
- A credit agreement must specify, in a clear and concise manner, the existence or absence of the right to withdraw, the time limit/period for such withdrawal, and other conditions, including the calculation of the withdrawal period.
- The mere reference to a legislative or regulatory act determining the rights and obligations of the parties in the general terms and conditions of an agreement is insufficient, as previously concluded by case law. Reference in a consumer credit agreement to a provision of national law which itself refers to other legislative provisions is therefore unacceptable.
In our opinion, these conclusions should not be applied extensively; consumer credit providers nonetheless should review their contractual documentation and carefully consider any references to legal regulations that give rise to concrete obligations for consumers.