Banks can not arbitrarily alter the interest rates on credits a change in EURIBOR
Banks can not arbitrarily alter the interest rates on credits a change in EURIBOR
Clause in the loan agreement stipulates that the minimum acceptable value for the bank 3-month EURIBOR 2.5%
Clause in the loan agreement stipulates that the minimum acceptable for the bank amount of 3-month EURIBOR 2.5%, the bank has the right during the contract unilaterally change the amount of the interest in the event that the 3-month EURIBOR reach levels by 0.25% higher than those specified in the contract within one month and notify the borrower. SCC accepts that such an arrangement is entirely in favor of the bank and the detriment of the borrower and is void.
In the systematic interpretation of Art. 143 and Art. 144 of the Law on consumer protection, taking into account the objective of the law, the SCC stated that it is permissible clause in the loan agreement to increase the originally agreed interest if it meets the following cumulative conditions: 1) the circumstances of treason interest to expressly agreed ; 2) they are objective and do not depend on the will of the creditor; 3) the methodology for change of interest shall be detailed and clearly described in the contract; 4) be possible both increase and decrease in interest originally agreed.
SCC in Decision № 424 of 02.12.2015, on the city. E. № 1899/2015, approve that the above clause does not meet these conditions. It provides for circumstances in which the interest rate can be changed unilaterally by the bank - if the 3-month EURIBOR reached levels by 0.25% higher than those specified in the contract within one month and this does not depend on the will of the creditor, as an objective market index. However, implementation of this circumstance is subject to the will of the creditor, as: 1) is mediated by a deliberate act of the bank, and there is no automatism of change; 2) lack of clarity on the way of forming unilaterally change the interest; 3) lack of commitment on the exact amount of the increase in interest rates by the amount of increase in the index; 4) established an express prohibition is to reduce the interest rate from the originally agreed rate of 6.4%. In view of this process clause is unfair.
Attorney at law Iuila Danova
#3, Dobrotica Str., Varna, Bulgaria
Mob: +359 895 64 59 40
WWW: advokatvarna.com
Email: iulia.danova@abv.bg