Unfair terms in mortgage loans and protection of housing in times of economic crisis: Aziz v. Catalunyacaixa

Publishers Abstract:

In Aziz, the Court of Justice was once again asked to interpret Directive 93/13/EEC, on unfair terms in consumer contracts, in a situation involving a mortgage loan. The First Chamber judgment confirms the established case law of the ECJ on the powers of national judges to examine of their own motion the unfairness of contractual terms, this time with regard to the possibility of national judges in declaratory procedures to adopt interim measures that affect enforcement procedures followed before other national courts.

Aziz is also relevant for the interpretation of the constituent elements of the concept of "unfair terms", providing new interpretative guidance on the notions of "imbalance" and "good faith": it adds to the jurisprudential line on the criteria to be taken into account by national courts when examining the unfair character of contractual terms in consumer contracts.

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