Unfair Terms in Banking and Financial Contracts

This timely new work provides a thorough overview, analysis, and discussion of standard terms control for banking and financial contracts in Europe. Unfair Terms in Banking and Financial Contracts argues that this sector uniquely necessitates unfair terms control, due to the asymmetrical relationship between lay consumers and the financial industry and discusses the role of the judiciary in addressing this imbalance.

The rise of unfair terms control as a remedy for consumers and businesses against financial institutions with superior bargaining power has led to questions about the Directive's threat to existing contracts. Disputes have already arisen across Europe in several areas including foreign currency housing loans, housing loans based on Euribor, and hidden bank fees. These disputes and their outcomes are high stakes for banks and their customers. The stakes of the outcomes of these disputes for the customers as well as for the banks are very high.

The book focuses on the EU Unfair Terms Directive (UTD) but also considers the law of non-EU jurisdictions. Beginning with an overview of the UTD and the extensive case law of the CJEU, the volume brings together leading authorities in the field of financial law to provide analyses of the UTD's application in this sector across 15 EU jurisdictions (Ireland, Germany, France, Italy, Spain, Austria, The Netherlands, Belgium, Sweden, Greece, Poland, Romania, Czech Republic, Hungary, and Estonia). It then goes on to compare the legal situation in three non-EU jurisdictions (United Kingdom, Switzerland, and Norway).

Locating unfair terms control within a broader European struggle to balance the power of market forces and the requirements of social justice, the volume offers a critique of the existing regime and concludes with a proposal for a common legal framework to ensure a level playing field and greater harmonisation across the EU.

table of content

PART I: GENERAL

1:Introduction, Danny Busch and Matthias Lehmann

2:The Unfair Terms Directive and Its Application to Banking and Financial Contracts, Danny Busch and Matthias Lehmann

PART II: EU JURISDICTIONS

3:Germany, Matthias Lehmann

4:France, Thierry Bonneau

5:Italy, Laura Valle

6:Spain, Francisco de Elizalde and Sara Sánchez

7:Poland, Dariusz Adamski and Aneta Wiewiorowska

8:Romania, Monika Jozon

9:The Netherlands, Danny Busch

10:Belgium, Caroline Caufmann

11:Greece, Christina Livada

12:Czech Republic, Silvia Vyskocilová and Rita Ildikó Sik-Simon

13:Sweden, Torbjörn Ingvarsson

14:Hungary, Judit Fazekas and András Pomeisl

15:Austria, Alexander Schmit and Prof. Martin Spitzer

16:Ireland, Alexandros Seretakis

17:Estonia, Irene Kull

PART IIa: NON-EU/EEA JURISDICTIONS

18:Norway, Marte Eidsand Kjørven

PART IIb: NON EU/NON-EEA JURISDICTIONS

19:United Kigdom, Gerard McMeel

20:Switzerland, Yesim Atamer

PART III: CONCLUSION

21:Towards an Unfair Terms Regulation, Danny Busch and Matthias Lehmann

1:Introduction

2:The Unfair Terms Directive and Its Application to Banking and Financial Contracts

PART II: EU JURISDICTIONS

3:Germany

4:France

5:Italy