On 7.12.2023, there was another CJEU judgment in favour of Borrowers (in case C-140/22), which will significantly facilitate ongoing proceedings.

The Court ruled that:
– declarations of the effects of the invalidity of the loan agreement made by the Borrowers are not required under EU rules to invalidate the loan agreement;
– the borrower is not obliged to make a formal declaration before a court that he consents to the cancellation of the credit agreement and is aware of the consequences of its cancellation;
– the borrower is entitled to reimbursement of the full value of the claims without deduction of interest.

Today’s judgement is undoubtedly good news for Borrowers in disputes against banks. Until now, it has been common to oblige Borrowers to make declarations containing their consent to the cancellation of a credit agreement. However, in the Court’s view, making the cancellation of a credit agreement conditional on the submission of a declaration by the consumer does not comply with the provisions of Articles 6(1) and 7(1) of Directive 93/13.

The abandonment of the practice of filing declarations will undoubtedly contribute to speeding up pending proceedings. It also provides grounds for a change in the line of jurisprudence of some courts, according to which statutory interest for late payment was awarded from the date of filing the declarations on the effects of cancellation of the credit agreement, and not from the date of filing the summons for payment.

The Court ruled that the banks were not entitled to reduce the Borrowers’ claims by any interest that the bank would have been entitled to if the contract had remained in force. Once again, the Court sided with the Borrowers in their dispute with the banks, holding that the Borrowers’ claims are not prejudiced in this respect.