Loan revocation: BGH follows the ECJ and strengthens consumer rights Berlin (ots) – The Federal Court of Justice (BGH) strengthens consumer rights in the case of loan revocation. The cancellation policy used in almost all loan contracts is then insufficient and the contract can therefore be canceled.
The impetus for the judgment of the BGH published on November 26th, 2020 was originally given by the European Court of Justice (ECJ) with its decision of March 26th, 2020 (C-66/19), in which the sample text of the cancellation policy was found to be insufficient. The cascade reference contained, which refers to other laws without these being named, is not permitted in this form. According to the EU consumer credit directive, cancellation instructions must be clear and understandable, which prevents the cascade reference. The ruling was groundbreaking as it promised borrowers a new joker for withdrawal.
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