This judgment concerns the interpretation of Directive 2008/48/EC on consumer credit agreements. Here is the detailed analysis:
1. Essence of the act in 3-5 sentences:
The judgment addresses three key questions regarding consumer credit agreements under EU law: 1) whether overstating the annual percentage rate of charge (APRC) due to unfair terms constitutes a violation of information obligations; 2) whether listing circumstances for cost increases without allowing consumers to verify them violates information requirements; and 3) whether national penalties for information violations can be uniform regardless of their severity. The Court ruled that overstated APRC due to unfair terms is not automatically a violation, but unclear cost increase conditions that prevent consumers from assessing their liability do violate the directive. The Court also found that uniform penalties like forfeiting interest rights can be proportionate if the violation affects consumers’ ability to assess their liability.
2. Structure and main provisions:
– The judgment analyzes Article 10(2)(g) and (k) and Article 23 of Directive 2008/48/EC
– It examines three separate but related questions about consumer credit information requirements
– The ruling builds on previous case law about consumer protection and transparency requirements
– The Court provides specific guidance on how to assess compliance with information obligations
– The judgment balances creditor obligations with proportionate enforcement measures
3. Most important provisions for use:
– Creditors must provide clear and verifiable information about potential cost increases
– The APRC calculation must be based on all costs at the time of contract conclusion
– Information requirements aim to allow consumers to assess their total liability
– National penalties for violations must be effective and proportionate
– Uniform penalties like interest forfeiture can be justified for serious information violations that affect consumer understanding
The judgment provides important clarification for both creditors and national courts on how to interpret and apply consumer credit information requirements under EU law.
: This judgment has implications for Ukraine as it sets standards for consumer credit agreements that would need to be followed under EU harmonization requirements.
