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Reverse Mortgage contracts, refund paid penalty , a new PPI scam or just fake news


Patrick
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The news are currently spreading across Germany, seems like a big thing, but nothing on any UK forums or advice/law websites.

Not to a large surprise, as pretty much everything is corona now. Or maybe Uk has different clauses/agreements and therefor is and will be unaffected

by this ruling.

 

There just has been preliminary ruling regards consumers  credit agreements  by the European Court of Justice.
http://curia.europa.eu/juris/document/document.jsf?text=&docid=224723&pageIndex=0&doclang=EN&mode=lst&dir=&occ=first&part=1&cid=1198624
 

This ruling affecting consumer credit agreements across Europe and therefore should apply to UK consumer credit agreements (incl. mortgages) as well.-in theroy.

 

A Quick translation of a lawfirm going into a few details:

 

After yesterday's ECJ ruling on loan contracts: the Federal Court of Justice now has to overturn the legal fiction - millions of loan contracts can be canceled.

 

While the revocation of credit contracts can be profitable for consumers, entrepreneurs, especially credit institutions, must now fear that customers will detach themselves from unpleasant contracts on the basis of the ECJ judgment. Millions of credit contracts are affected by the decision of the CJEU and the end of the legal fiction, for example all real estate consumer loan contracts that were concluded between June 10, 2010 and March 20, 2016. In the case of car loans and other general consumer loan contracts, the period from June 10, 2010 until today is affected.
 

With the revocation, for example, consumers could free themselves from high-interest real estate loans and reschedule debt cheaply. You will get back the interest already paid. If the revocation is effective, banks must not demand prepayment penalty and must release consumers from the loan. In the case of general consumer loans, such as a car loan, it also follows from the revocation that the credit agreement has ended, the consumer has received his previous payments back and the bank may not demand any prepayment penalty. The car must also be handed over to the bank. In view of the unforeseeable effects of the Corona crisis, the CJEU judgment could help millions of consumers.

 

I am no expert and basically haven t got a clue at all if this would be something to affect the UK as well , or if credit agreements are designed differently within the UK than in this example -in Germany.

But possibly worth looking into for anybody having unfavourable credit terms.

 


 

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It says..

 



Credit agreements covering the granting of credit secured by real estate should be excluded from the scope of this Directive. 

 

So appears to excluded mortgages.

 

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