In a recent decision, the ECJ addressed the question of the right of withdrawal from a loan agreements for consumers. Companies have to provide certain information in the case of loan agreements for customers. If in these statements, reference is made to a law, which refers to yet another law, it’s classified as a series of national provisions (“Kaskadenverweis”). This is declared inadmissible by the ECJ in the case of information on the right of withdrawal from a loan. Consumers could neither identify the scope of the contractual obligation nor verify whether the contract contains all the necessary information. Consumers can also not verify whether the withdrawal period has already commenced. (ECJ C-66/19 dated 26.03.2020). Note: The German BGH declared a series of national provisions for loan agreements for consumers and real estate loans to be permissible.
8. May 2020