26.7.2021

Official Journal of the European Union

C 297/7

(Case C-609/19) (1)

(Reference for a preliminary ruling - Consumer protection - Directive 93/13/EEC - Unfair terms in consumer contracts - Mortgage loan agreement denominated in a foreign currency (Swiss francs) - Article 4(2) - Main subject matter of the contract - Terms exposing the borrower to a foreign exchange risk - Requirements of intelligibility and transparency - Article 3(1) - Significant imbalance - Article 5 - Contractual term that is in plain, intelligible language)

(2021/C 297/05)

Language of the case: French

Referring court

Parties to the main proceedings

Applicant: BNP Paribas Personal Finance SA

Defendant: VE

Operative part of the judgment

1.Article 4(2) of Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts must be interpreted as meaning that terms of the loan agreement which stipulate that repayments at fixed intervals are allocated first to interest and which provide, in order to pay the account balance, for an extension of the term of that agreement and for an increase in monthly instalments come within that provision where those terms lay down an essential element characterising the agreement;

2.Article 4(2) of Directive 93/13 must be interpreted as meaning that, in the context of a loan agreement denominated in a foreign currency, the requirement of transparency of terms of that agreement, which stipulate that payments at fixed intervals are allocated first to interest and that provide, in order to pay the account balance, for an extension of the term of the agreement and for an increase in monthly instalments, is satisfied where the seller or supplier has provided the consumer with sufficient and accurate information to enable the average consumer, who is reasonably well informed and reasonably observant and circumspect, to understand the specific functioning of the financial mechanism in question and thus to evaluate the risk of potentially significant adverse economic consequences of such terms on his or her financial obligations throughout the term of the agreement;

3.Article 3(1) of Directive 93/13 must be interpreted as meaning that terms of a loan agreement which stipulate that payments at fixed intervals are allocated first to interest and which provide, in order to pay the account balance, which may increase significantly as a result of variations in the exchange rate between the account currency and the payment currency, for an extension of the term of the agreement and for an increase in monthly instalments, are liable to cause a significant imbalance in the parties’ rights and obligations arising under that agreement, to the detriment of the consumer, where the seller or supplier could not reasonably expect, in compliance with the requirement of transparency in relation to the consumer, that the consumer would have agreed, in individual contract negotiations, to a disproportionate foreign exchange risk as a result of those terms.

(1) OJ C 348, 14.10.2019.