Kásler and another v OTP Jelzálogbank Zrt – WLR Daily

Kásler and another v OTP Jelzálogbank Zrt (Case C‑26/13); [2014] WLR (D) 180

‘The expression the “main subject matter of a contract” in article 4(2) of Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts covered a term, incorporated in a loan agreement denominated in foreign currency concluded between a seller or supplier and a consumer and not individually negotiated, pursuant to which the selling rate of exchange of that currency was applied for the purpose of calculating the repayment instalments for the loan, only in so far as it was found, which it was for the national court to ascertain, that that term laid down an essential obligation of that agreement which characterised it. Such a term, in so far as it contained a pecuniary obligation for the consumer to pay, in repayment of instalments of the loan, the difference between the selling rate of exchange and the buying rate of exchange of the foreign currency, could not be considered as “remuneration” the adequacy of which as consideration for a service supplied by the lender could not be the subject of an examination as regards unfairness under article 4(2) of Directive 93/13.’

WLR Daily, 30th April 2014

Source: www.iclr.co.uk