Mohammed Aziz was a resident in Spain. He took out a mortgage with Caixa d'Estalvis de Catalunya (the Savings Bank of Catalonia), secured on his home at an annual default interest rate of 18.75%. The Caixa was entitled to call in the loan upon a default by Aziz. Clause 15 of the contract also purported to give the right to reclaim any debt, quantifiable immediately. Aziz did default, and the Caixa quantified the debt through a notary, adding contractual and default interest. The bank began repossession of the property and a week before eviction, Aziz applied to the Spanish court to annul clause 15 on grounds of unfairness under the Unfair Terms in Consumer Contracts Directive. No provision in Spanish law foresaw this possibility, nor was there any interim relief. Under Spanish law, final vesting of the mortgaged property was irreversible even if a term was challenged as unfair before the court. The only exception was where a consumer made preliminary registration for the application to be annulled before a marginal note regarding a security certificate.
Judgmentedit
Spanish courtsedit
The Spanish Court asked the European Court of Justice (1) whether national law was compatible with the Unfair Contract Terms Directive 93/13/EC, (2) what the concept of 'unfair term' in articles 3(1) and (3) meant, to assess the fairness of terms relating to acceleration in long terms contracts, in setting default interest rates and quantification. The Caixa said this was inadmissible, as being irrelevant to the dispute, because it related to declaratory rather than enforcement proceedings.
European Court of Justiceedit
The Court of Justice, First Chamber, held that the terms were capable of being assessed for fairness.
aziz, caixa, estalvis, catalunya, this, article, does, cite, sources, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, february, 2020, . This article does not cite any sources Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Aziz v Caixa d Estalvis de Catalunya news newspapers books scholar JSTOR February 2020 Learn how and when to remove this template message Aziz v Caixa d Estalvis de Catalunya 2013 Case C 415 11 is an EU law and consumer protection case concerning the Unfair Terms in Consumer Contracts Directive It emphasises the foundations of consumer protection on inequality of bargaining power and imbalances in information Aziz v Caixa d Estalvis de CatalunyaCourtEuropean Court of JusticeFull case nameAziz v Caixa d Estalvis de Catalunya Tarragona i Manresa Catalunyacaixa Citation s 2013 Case C 415 11 2013 3 CMLR 5KeywordsConsumer protection unfair contract terms Contents 1 Facts 2 Judgment 2 1 Spanish courts 2 2 European Court of Justice 3 See also 4 Notes 5 ReferencesFacts editMohammed Aziz was a resident in Spain He took out a mortgage with Caixa d Estalvis de Catalunya the Savings Bank of Catalonia secured on his home at an annual default interest rate of 18 75 The Caixa was entitled to call in the loan upon a default by Aziz Clause 15 of the contract also purported to give the right to reclaim any debt quantifiable immediately Aziz did default and the Caixa quantified the debt through a notary adding contractual and default interest The bank began repossession of the property and a week before eviction Aziz applied to the Spanish court to annul clause 15 on grounds of unfairness under the Unfair Terms in Consumer Contracts Directive No provision in Spanish law foresaw this possibility nor was there any interim relief Under Spanish law final vesting of the mortgaged property was irreversible even if a term was challenged as unfair before the court The only exception was where a consumer made preliminary registration for the application to be annulled before a marginal note regarding a security certificate Judgment editSpanish courts edit The Spanish Court asked the European Court of Justice 1 whether national law was compatible with the Unfair Contract Terms Directive 93 13 EC 2 what the concept of unfair term in articles 3 1 and 3 meant to assess the fairness of terms relating to acceleration in long terms contracts in setting default interest rates and quantification The Caixa said this was inadmissible as being irrelevant to the dispute because it related to declaratory rather than enforcement proceedings European Court of Justice edit The Court of Justice First Chamber held that the terms were capable of being assessed for fairness See also editEU law English contract lawNotes editReferences edit Retrieved from https en wikipedia org w index php title Aziz v Caixa d 27Estalvis de Catalunya amp oldid 1069522897, wikipedia, wiki, book, books, library,
