Source: European Parliament
Directive 93/13/EEC[1] requires Member States to ensure that consumers are not bound by unfair contract terms. I t applies to all contracts on the purchase of goods and services[2] including financial services .
Under Directive 93 /13/EEC as interpreted by the Court of Justice of the European Union , i t is for Greek authorities and courts to assess, based on the circumstances of each case, whether Greek banks comply with their obligations regarding the fairness and transparency of contract terms such as those exposing the borrower to a foreign exchange risk[3], and draw conclusions in each case .
In particular, contracts continue to be binding without the unfair terms[4] unless this is impossible under national law. The practical consequences of the invalidity of a mortgage loan contract on account of unfair terms are also governed by national law, provided that it allows to restore the situation which the consumer would have been in without the contract[5].
Finally, remedies enabling consumers to rely on the unfairness of contract terms must be available under conditions which do not hamper the obtention of the protection sought, including through interim measures[6].
The Commission does not have powers to intervene in individual consumer disputes, to review decisions of national authorities and courts or to order the suspension of property auctioning.
Regarding Directive 2014/17/EU[7], it introduced specific rules to protect consumers where the credit is dominated in a foreign currency (e.g. explanations for the implications to consumers, right to convert the credit agreement into an alternative currency).
The directive only applies to mortgage credit contracts concluded as from March 2016, not offering protection for contracts prior to this date.
- [1] Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts, OJ L 95, 21.4.1993, p. 29-34.
- [2] See Section 5 of Commission Notice — Guidance on the interpretation and application of Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts, OJ C 323, 27.9.2019, p. 4-92, COM(2019) 5325 final. However, pursuant to Article 1(2) of Directive 93/13/EEC, the directive does not apply to contract terms that reflect national mandatory statutory provisions, which are applicable independently of the parties’ choice or which are supplementary and apply in the absence of other arrangements between the parties; see for example the judgment of the Court of Justice of the European Union of 21 December 2021 in Case C-243 /20 Trapeza Peiraios AE.
- [3] See for example the judgment of the Court of Justice of the European Union of 10 June 2021 in Joined Cases C-776/19 to C-782/19 BNP Paribas Personal Finance SA.
- [4] Article 6(1) of Directive 93/13/EEC.
- [5] See for example the judgment of the Court of Justice of the European Union of 15 June 2023 in Case C-520/21 Bank M.
- [6] See for example the judgment of the Court of Justice of the European Union of 10 September 2014 in Case C-34/13 Kušionová.
- [7] Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010 Text with EEA relevance, OJ L 60, 28.2.2014, p. 34-85.