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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Main Authors: Monica CALU, Costel STANCIU
Format: Article
Language:English
Published: Nicolae Titulescu University Publishing House 2017-05-01
Series:Challenges of the Knowledge Society
Subjects:
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.
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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