‘Double default: on default interest and default rules’

“Tuesday 7 August 2018, the last date on the judicial calendar of the CJEU before summer recess, was a busy day. Two of the cases on the dock in which the CJEU gave judgment concerned preliminary references from Spain: Joined Cases C-96/16 and C-94/97 (Escobedo Cortés), discussed earlier on this blog. The judgment relates to, in short, the case law of the Spanish Supreme Court (Tribunal Supremo) on default interest clauses and the Unfair Contract Terms Directive. Both cases pertained to (mortgage) loan agreements concluded between consumers and banking institutions, containing a default interest clause (‘interés moratorio‘). This clause entailed that the consumers would have to pay interest rates of 18.50%, 23.50% and 25% respectively in case they were late on meeting their payment obligations …” (more)

[Anna van Duin, Recent developments in European Consumer Law, 10 August]

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