BEATING BANKS THROUGH KNOWLEDGE
In Romania, in the last decade, a significant number of solutions favorable to consumers with foreign currency denominated loans were obtained in courts against the banks or non-bank financial institutions. The judges noted the unfairness of the contractual terms inserted in the loans agreement and...
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| Format: | Article |
| Language: | English |
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Nicolae Titulescu University Publishing House
2017-05-01
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| Series: | Challenges of the Knowledge Society |
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| Online Access: | http://cks.univnt.ro/uploads/cks_2017_articles/index.php?dir=02_private_law%2F&download=CKS_2017_private_law_001.pdf |
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| author | Monica CALU Costel STANCIU |
| author_facet | Monica CALU Costel STANCIU |
| author_sort | Monica CALU |
| collection | DOAJ |
| description | In Romania, in the last decade, a significant number of solutions favorable to consumers with foreign currency denominated loans were obtained in courts against the banks or non-bank financial institutions. The judges noted the unfairness of the contractual terms inserted in the loans agreement and absolute nullity of these clauses. Also, in the context of the global economic and financial crisis triggered by the collapse of the banking system with the consequence of depreciation and/or sudden and high fluctuation of domestic currencies against the “safe-heaven currencies”, the theory of unpredictability becomes a particularly important institution. This paper deals with the concepts of „abusive clauses”, „unfair commercial practices” and „providing untruthful information to consumers to influence their choices”. It is also presenting a view of good faith and equity on the performance of contract and the “distribution of the risk” of the contract in the conditions of applying to the “unpredictability theory” in the context of terms of law doctrine and the relevant case law. The objective of this study is to demonstrate that by applying the theory of unpredictability to the occurrence of currency risk associated with loans in foreign currency and by subjecting to examination by court to the clauses whereby the consumer must assume the risk given by the changing of the circumstances of the execution of the contract can be obtain by the consumer or a rebalancing of the understanding of the parties or the cancellation clause which significantly unbalanced the consumer's obligation to bear any risk. |
| format | Article |
| id | doaj-art-7019dfe6a56f44ab924e2185e57aa94f |
| institution | DOAJ |
| issn | 2068-7796 2068-7796 |
| language | English |
| publishDate | 2017-05-01 |
| publisher | Nicolae Titulescu University Publishing House |
| record_format | Article |
| series | Challenges of the Knowledge Society |
| spelling | doaj-art-7019dfe6a56f44ab924e2185e57aa94f2025-08-20T02:53:02ZengNicolae Titulescu University Publishing HouseChallenges of the Knowledge Society2068-77962068-77962017-05-017-177181BEATING BANKS THROUGH KNOWLEDGEMonica CALU0Costel STANCIU1Consumer Law Expert Pro Consumatori AssociationAssociate Professor, PhD, “Nicolae Titulescu” University of BucharestIn Romania, in the last decade, a significant number of solutions favorable to consumers with foreign currency denominated loans were obtained in courts against the banks or non-bank financial institutions. The judges noted the unfairness of the contractual terms inserted in the loans agreement and absolute nullity of these clauses. Also, in the context of the global economic and financial crisis triggered by the collapse of the banking system with the consequence of depreciation and/or sudden and high fluctuation of domestic currencies against the “safe-heaven currencies”, the theory of unpredictability becomes a particularly important institution. This paper deals with the concepts of „abusive clauses”, „unfair commercial practices” and „providing untruthful information to consumers to influence their choices”. It is also presenting a view of good faith and equity on the performance of contract and the “distribution of the risk” of the contract in the conditions of applying to the “unpredictability theory” in the context of terms of law doctrine and the relevant case law. The objective of this study is to demonstrate that by applying the theory of unpredictability to the occurrence of currency risk associated with loans in foreign currency and by subjecting to examination by court to the clauses whereby the consumer must assume the risk given by the changing of the circumstances of the execution of the contract can be obtain by the consumer or a rebalancing of the understanding of the parties or the cancellation clause which significantly unbalanced the consumer's obligation to bear any risk.http://cks.univnt.ro/uploads/cks_2017_articles/index.php?dir=02_private_law%2F&download=CKS_2017_private_law_001.pdf„abusive clauses”„unfair commercial practices” and „providing untruthful information to consumers to influence their choices”“distribution of the risk”“theory of unpredictability” |
| spellingShingle | Monica CALU Costel STANCIU BEATING BANKS THROUGH KNOWLEDGE Challenges of the Knowledge Society „abusive clauses” „unfair commercial practices” and „providing untruthful information to consumers to influence their choices” “distribution of the risk” “theory of unpredictability” |
| title | BEATING BANKS THROUGH KNOWLEDGE |
| title_full | BEATING BANKS THROUGH KNOWLEDGE |
| title_fullStr | BEATING BANKS THROUGH KNOWLEDGE |
| title_full_unstemmed | BEATING BANKS THROUGH KNOWLEDGE |
| title_short | BEATING BANKS THROUGH KNOWLEDGE |
| title_sort | beating banks through knowledge |
| topic | „abusive clauses” „unfair commercial practices” and „providing untruthful information to consumers to influence their choices” “distribution of the risk” “theory of unpredictability” |
| url | http://cks.univnt.ro/uploads/cks_2017_articles/index.php?dir=02_private_law%2F&download=CKS_2017_private_law_001.pdf |
| work_keys_str_mv | AT monicacalu beatingbanksthroughknowledge AT costelstanciu beatingbanksthroughknowledge |