The terms of a consumer credit contract are deemed to be unfair if the consumer has not been provided with all the information on the total cost of the consumer credit, the annual percentage rate of charge, the amount of interest, and the amount of the consumer credit.
A consumer and a financial limited liability company UAB “4finance” entered into a consumer credit contract. The consumer failed to meet the payment schedule, so the company filed a lawsuit against the consumer requesting the court to award the outstanding loan and interest. The First Instance Court upheld the action in full. The Appellate Court left the decision of the First Instance Court unchanged.
Would it be reasonable to consider consumer credit contract terms to be unfair if the consumer has not been provided with all the information on the total cost of the consumer credit, the annual percentage rate of charge, the amount of interest and the amount of the consumer credit?
Given that the terms defining the total consumer credit price, the annual percentage rate of charge, the interest rate and the consumer credit amount are terms which define the main subject of the consumer credit contract, their non-compliance with the transparency requirement, if it leads to unfair terms, does not allow the consumer credit agreement to be preserved, because without these contract terms the consumer credit agreement would no longer be valid. Therefore, the entire contract (including its amendments) should be declared invalid and restitution should apply.
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The Court annulled the decisions of the First Instance and the Appellate Courts and remitted the case back to the First Instance Court.