Preliminary Ruling On The Requirement For 'Plain Intelligible Language' In Consumer Contracts

Ruxandra Paula Andriciuc and Others v Banca Românească SAC 186/16, ECLI:EU:C:2017:703

The Court of Justice of the European Union (CJEU) has made a preliminary ruling in relation to the interpretation of Directive 93/13/EEC on Unfair Terms in Consumer Contracts (the Unfair Terms Directive).

Under Article 3 of the Unfair Terms Directive, a term shall be unfair if "it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer". Article 4 provides an exception to this, in so far as: (i) the term is written in "plain intelligible language"; and (ii) the terms relate to the "main subject matter of the contract".

Between 2007 and 2008, Mrs Andriciuc and others (the Borrowers), whose income was denominated in Romanian lei (RON), entered into loan agreements with Banca Românească SA (the Bank) denominated in Swiss francs (CFH) (the Loans). Under the terms of the Loans, the Borrowers were to make monthly repayments in CFH...