On 15 June 2023, the EU Court of Justice (ECJ) issued its judgment in case C-520/21 (Arkadiusz Szcześniak v Bank M. SA,). The District Court of Warsaw (Poland) inquired as to whether Articles 6 and 7 of Directive 93/13 of 5 April 1993 on unfair terms in consumer contracts and the principles of effectiveness, legal certainty and proportionality allow a judicial interpretation of national legislation pursuant to which, where a loan agreement entered into by and between a bank and a consumer is found to have been null and void from the outset because it contains unfair terms, the parties, in addition to the reimbursement of the sums paid in the performance of that agreement and statutory interest for late payment from the date of the demand for payment, may pursue other claims, including remuneration, compensation, reimbursement of expenses or indexation of the amounts paid. By its judgment, the ECJ responded that the consumer has the right to seek compensation from the bank going beyond reimbursement of the monthly instalments and the expenses paid in respect of the performance of the annulled loan agreement together with the payment of default interest at the statutory rate from the date on which notice is served, provided that the objectives of Directive 93/13 and the principle of proportionality are observed. In contrast, Directive 93/13 precludes the bank from being able to seek compensation from the consumer going beyond reimbursement of the capital paid together with the payment of statutory default interest, as granting such a right would impair the deterrent effect on sellers or suppliers.
Originally published July 2023
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