The Legal Consequences of Unfair Contract Terms in Consumer Loan Agreements Valorized with Foreign Currency

2021 ◽  
Vol 46 (3-4) ◽  
pp. 346-373
Author(s):  
Bartosz Ziemblicki ◽  
Mateusz Lewandowski
Keyword(s):  
European Union ◽  
Exchange Rate ◽  
Foreign Currency ◽  
Exchange Rate Risk ◽  
The European Union ◽  
Currency Exchange ◽  
Court Of Justice ◽  
Currency Exchange Rate ◽  
Unfair Terms ◽  
Legal Consequences

Abstract In recent years, the Court of Justice of the European Union has issued a number of judgments addressing the issue of consumer protection in connection with the use of unfair terms by banks in loan agreements indexed with a foreign currency exchange rate. Most of them have concerned issues of exchange rate risk and exchange rate differences between the purchase and sale rates of a given currency applied by the bank. This article analyzes the recent ruling by the Court of Justice of the European Union in the Dziubak case, which was initiated by referring questions for a preliminary ruling by a Polish court. The article’s purpose is to assess the position taken by the cjeu in this respect and its significance for consumers in Poland. Particular attention was paid to the considerations with regard to the possibility of replacing unfair provisions with general provisions and assessing the consumer’s awareness of the consequences of declaring a contract invalid. The aim is to examine the issues that were dealt with by the Court of Justice of the European Union in the Dziubak case, including – in particular – the answer to the question of whether the issues discussed by the cjeu had already been considered in its previous jurisprudence and whether it presents new, previously unknown legal consequences of the inclusion of unfair contract terms in loan agreements.

Polish bank profits remain uncertain after CJEU ruling

2019 ◽  
Keyword(s):  
European Union ◽  
Exchange Rate ◽  
Foreign Currency ◽  
Swiss Franc ◽  
The European Union ◽  
Content Type ◽  
Court Of Justice ◽  
Local Courts ◽  
The Way ◽  
Bank Profits

Subject CJEU ruling on Swiss-franc mortgages. Significance A long-anticipated ruling by the Court of Justice of the European Union (CJEU) on October 3 opens the way for the annulment of foreign currency (FX)-linked mortgage contracts in Poland whose terms have been deemed to be unfair by local courts. It is a partial victory for the mortgage holders. Impacts The ruling will shield banks from the immediate conversion of loans into zloty-based contracts at a favourable exchange rate for borrowers. The ruling is non-binding and merely provides guidance for Polish courts. Polish bank stocks and the zloty have fared well since the CJEU announced its decision.

scholarly journals Rozliczenie kredytu mieszkaniowego z niedozwolonymi walutowymi klauzulami indeksacyjnymi

Studia BAS ◽  
2021 ◽  
Vol 2 (66) ◽  
pp. 173-193
Author(s):  
Marcin Liberadzki
Keyword(s):  
Exchange Rate ◽  
Final Section ◽  
Foreign Currency ◽  
The Other ◽  
Mortgage Loan ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
Better Than

This paper deals with how to settle a foreign currency exchange rate indexed mortgage loan between a bank and a consumer if the court declares that the loan agreement has an abusive clause. At present, many consumers in Poland strive to void their contracts on the grounds that they contain an abusive indexation clause, mainly referred to the CHF/PLN exchange rate. The calculations are based on a CHF indexed 30 years mortgage with decreasing monthly installments, starting in 2008. The settlement amount is calculated for two most probable scenarios: 1) the contract is declared void; 2) the contract continues but without the abusive indexation clause. One cannot determine which scenario is definitely better than the other for any party. In the final section of the article the implications for Polish banks are presented.

scholarly journals Uprawnienia kredytobiorcy zaciągającego kredyt denominowany lub indeksowany do waluty innej niż polska w świetle ustawy antyspreadowej

Ekonomia ◽  
2018 ◽  
Vol 24 (1) ◽  
pp. 39-56
Author(s):  
Magdalena Paleczna ◽  
Edyta Rutkowska-Tomaszewska
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Consumer Credit ◽  
Competitive Position ◽  
Credit Facility ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
Credit Law ◽  
Credit Contract

Rights of the borrower committing denominated or indexed loan in a foreign currency in light of the Anti-spread ActIn 2004–2008 banks offered consumer denominated loan in a foreign currency, which was a competitive position in relation to a PLN credit facility. Banks had not informed about foreign exchange differences, therefore had caused increase in household indebtedness. Banks also had reserved that consumer has to buy currency only from the bank-lender. In 2011 the Anti-spread Act was adopted, which amended banking law and consumer credit law. Creditors were obligated to inform consumer about rules of determining the manners and dates of fixing the currency exchange rate on the basis of which in particular the amount of credit, its tranches and principal and interest instalments are calculated, and the rules of converting into the currency of credit disbursement or repayment. That information and information about the rules of opening and operating the account shall be concluded in a credit contract. Borrower can repay principal and interest instalments and prepay the full or partial amount of the loan directly in that currency.

scholarly journals La necesaria reforma de la mal llamada «jura de cuentas»

2018 ◽  
pp. 73
Author(s):  
José Bonet Navarro
Keyword(s):  
European Union ◽  
General Counsel ◽  
The European Union ◽  
Court Of Justice ◽  
The Law ◽  
Procedural Reform ◽  
Unfair Terms

Con ocasión de las cuestiones prejudiciales formuladas ante el Tribunal de Justicia de la Unión Europea sobre el control de cláusulas abusivas en el llamado «expediente de jura de cuentas», la Abogada General concluye que la regulación del procedimiento es inadecuada conforme al derecho de la Unión. Indirectamente, pone también en evidencia graves defectos en la regulación, principalmente porque se invaden funciones que corresponden exclusivamente a la jurisdicción. En la reforma procesal que seguirá en el caso de que la Sentencia del Tribunal de Justicia de la Unión Europea, y también en la reforma que debería seguirse en caso contrario, deberá garantizarse el control de oficio y suficiente de las cláusulas abusivas por el titular de la potestad jurisdiccional.On the occasion of the preliminary rulings exercised before the Court of Justice of the European Union on examination ex officio of possible unfair terms in the expedient called «manifestation of accounts», the General Counsel concludes that the procedure is inappropriate according to the law of the Union. Indirectly, it reveals serious defects in regulation, mainly because it invades exclusive domains of the jurisdiction. In the procedural reform that will continue in the event that the Sentence of the Court of Justice of the European Union, and also in the reform that should be followed otherwise, the ex officio control of the abusive clauses by the judge must be guaranteed.

scholarly journals An Intelligent Event-Sentiment-Based Daily Foreign Exchange Rate Forecasting System

2019 ◽  
Vol 9 (15) ◽  
pp. 2980 ◽  
Author(s):  
Muhammad Yasir ◽  
Mehr Yahya Durrani ◽  
Sitara Afzal ◽  
Muazzam Maqsood ◽  
Farhan Aadil ◽  
...  
Keyword(s):  
Deep Learning ◽  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Foreign Exchange Rate ◽  
Exchange Rate Forecasting ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
Us Dollar ◽  
The Exchange Rate

Financial time series analysis is an important research area that can predict various economic indicators such as the foreign currency exchange rate. In this paper, a deep-learning-based model is proposed to forecast the foreign exchange rate. Since the currency market is volatile and susceptible to ongoing social and political events, the proposed model incorporates event sentiments to accurately predict the exchange rate. Moreover, as the currency market is heavily dependent upon highly volatile factors such as gold and crude oil prices, we considered these sensitive factors for exchange rate forecasting. The validity of the model is tested over three currency exchange rates, which are Pak Rupee to US dollar (PKR/USD), British pound sterling to US dollar (GBP/USD), and Hong Kong Dollar to US dollar (HKD/USD). The study also shows the importance of incorporating investor sentiment of local and foreign macro-level events for accurate forecasting of the exchange rate. We processed approximately 5.9 million tweets to extract major events’ sentiment. The results show that this deep-learning-based model is a better predictor of foreign currency exchange rate in comparison with statistical techniques normally employed for prediction. The results present evidence that the exchange rate of all the three countries is more exposed to events happening in the US.

scholarly journals Hiszpania: postanowienie Izby Karnej Sądu Najwyższego z dnia 9 stycznia 2020 r. w sprawie specjalnej o numerze 20907/2017

2020 ◽  
Vol 5(160) ◽  
pp. 251-267
Author(s):  
Bartłomiej Dziedzic
Keyword(s):  
European Union ◽  
Supreme Court ◽  
European Parliament ◽  
The European Union ◽  
Prison Sentence ◽  
Criminal Proceedings ◽  
Public Funds ◽  
Court Of Justice ◽  
The Supreme Court ◽  
Legal Consequences

The Supreme Court ruled on the legal consequences of the judgment of the Court of Justice of the European Union in Case C-502/19 concerning Mr Oriol Junqueras – the supporter of the independence of Catalonia convicted of sedition and misappropriation of public funds. Mr O. Junqueras was elected Member of the European Parliament while he was in provisional detention, but after the trial stage of the criminal proceedings brought against him had been opened. The CJEU judgment concerned the scope of the immunity enjoyed by MEPs. The Supreme Court ruled, in accordance with the CJEU interpretation, that Mr Junqueras enjoyed the immunity. However, the prison sentence passed on him deprived him of his MEP status and therefore a request to waive the immunity in this particular case was not applicable.

scholarly journals Financial impact of using EUR call options to hedge accounts receivables

2021 ◽  
Vol 12 (01) ◽  
Author(s):  
Dr. Kenneth B. McEwan ◽  
Keyword(s):  
Supply Chain ◽  
Exchange Rate ◽  
Financial Risk ◽  
Foreign Currency ◽  
Exchange Rate Risk ◽  
Financial Loss ◽  
Call Options ◽  
Currency Exchange ◽  
Rate Risk ◽  
Financing Costs

International business has grown rapidly in recent years as companies seek to take advantage of expanding supply chain opportunities. As companies enter into contracts to take advantage of engineering, production, and cost reduction capabilities of the global supply chain, they may be creating a foreign currency exchange rate risk. The quantitative study examined the 60-day EUR/USD exchange rate fluctuation and the use of currency call options to hedge the risk associated with EUR/USD currency fluctuations. The researcher analyzed 13 years of historical EUR/USD currency data and 10 years of actual EUR call options premiums for this research paper. The researcher concluded that the variability of the EUR/USD over 60-days does pose financial risk to a company. The study also found that using currency call options to hedge this 60-day exchange rate risk resulted in an overall transactional financial loss as compared to no hedging. However, research studies have shown that the use of hedging instruments to smooth financial results may result in lower overall financing costs which could offset the hedging transactional costs. This study did not address the benefits of the use of hedging to smooth financial results or obtain other related financial benefits. The researcher recommends that a firm should recognize the exchange rate risks it may be establishing within 60-day EUR or USD payable contracts and develop an appropriate hedging strategy.

Reflectarea jurisprudenței Curții de Justiție a Uniunii Europene privind clauzele abuzive în materia executării silite în dreptul român, în special în ceea ce privește regimul contestației la executare

2021 ◽  
Vol 2021 (2021) ◽  
pp. 208-224
Author(s):  
Mirela STANCU ◽  
Keyword(s):  
European Union ◽  
Present Article ◽  
Case Law ◽  
Civil Procedure ◽  
Point Of View ◽  
The European Union ◽  
National Legislation ◽  
National Courts ◽  
Court Of Justice ◽  
Unfair Terms

"Although the jurisprudence of the Court of Justice of the European Union is commonly reflected in the practice of the national courts, unfortunately, more than ten years after Romania's accession to the European Union, there are still some syncopations at the legislative level. There are an example in that sense some of the provisions of the Romanian Code of Civil Procedure relating to the contestation against the forced execution (contestatia la executare). Indeed, on closer examination, it appears that these provisions do not fully comply with the requirements which, according to the jurisprudence of the Court of Justice of the European Union, must be respected by national legislation in order to stop the application of unfair terms in contracts concluded by a professional with consumers. The present article aims at such an examination of the provisions of the Romanian Code of Civil Procedure regarding the contestation against the forced execution from the perspective of the jurisprudence of the Court of Justice of the European Union in the field of unfair terms. Thus, after having identified from the jurisprudence of the Court of Justice the requirements that must be met by national legislation in order to stop the application of unfair terms in contracts concluded by a professional with consumers, the provisions of the Romanian Code of Civil Procedure relating to the contestation against the forced execution, the stay of execution and the time limit for the contestation will be examined from the perspective of the said jurisprudence. Finally, and without claiming to be exhaustive, in this article, the author also puts forward a possible interpretation of the national provisions examined from the point of view of the case law of the Court of Justice."

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