Promissory note enforcement vs. an ex officio review of unfair terms (Profi Credit Polska: C-176/17)

On 17 February 2017, the District Court in Siemianowice Śląskie (the “Court”) referred to the CJEU a preliminary question (C-176/17), asking whether the provisions of Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts, especially Article 6(1) and Article 7(1), and the provisions of Directive 2008/48/EC of 23 April 2008 on credit agreements for consumers and repealing Council Directive 87/102/EEC, especially Article 17(1) and Article 22(1), are to be interpreted as precluding the entrepreneur (the lender) from pursuing a claim against the consumer (the borrower), where the claim is acknowledged by a duly completed promissory note, by way of payment order proceedings specified in Article 485 § 2 and subsequent provisions of the Polish Civil Procedure Code, in relation to Article 41 of the Act on Consumer Credit of 12 May 2011, which limit the national court solely to examining the validity of the promissory note obligation with regard to the formal requirements of the promissory note, excluding examining the basic relation (the loan agreement).

Posted on 05/08/2017 by Krzysztof Riedl in Civil Procedure, Consumer Law, Contract Law, General Issues

Promissory note enforcement vs. an ex officio review of unfair terms

In the opinion of the District Court in Siemianowice Śląskie (judgement of 15 September 2016, I C 741/16), on the one hand the legislation provides for instruments making it possible to protect the consumer against unfair market practices, but on the other hand there functions a procedure of pursuing claims (in this case: payment order proceedings on the basis of a promissory note), which makes it possible to considerably weaken, in the consumer trade practice, the application of instruments of consumer protection. The Court, by limiting itself to an assessment of whether a promissory note has been issued correctly, does not need to examine whether a consumer loan agreement contains any abusive clauses, or whether the information obligations of the lender have been fulfilled, etc. Therefore, the provisions on payment order proceedings constitute a clear intrusion into the system of protecting the consumer against unfair market practices, which are described in Article 76 of the Constitution.

Posted on 12/07/2017 by Krzysztof Riedl in Consumer Law, Contract Law, General Issues

The effects of abstract review of contract clauses – the resolution of the Supreme Court (III CZP 17/15)

In the resolution of seven judges of 20 November 2015 (III CZP 17/15) the Supreme Court faced the question of the precise scope of erga omnes effect of in abstracto abusiveness of contract clauses. Under Art. 479⁴³ of the Code of Civil Procedure the judgment that declares abusiveness of a clause is “effective towards third persons”, from the day of listing this clause in the public register administered by the President of the Office of Protection of Competition and Consumers. Although the provisions in question have been repelled from the Polish legal system in April 2016 (and replaced with in abstracto administrative review of clauses), the resolution in question still have a profound significance for framing the underlying premises of abusiveness control in the EU, as well as the interplay between consumer protection and fundamental rights sphere.

Posted on 05/11/2016 by Mateusz Grochowski in Civil Procedure, Consumer Law

The effects of abstract review of contract clauses – legislative and judicial framework

In the resolution of seven judges of 20 November 2015 (III CZP 17/15) the Supreme Court faced the question of the precise scope of erga omnes effect of in abstracto abusiveness of contract clauses. Under Art. 479⁴³ of the Code of Civil Procedure the judgment declaring (abstract) abusiveness of a clause is “effective towards third persons”, from the day of listing this clause in the public register administered by the President of the Office of Protection of Competition and Consumers. Although the provisions in question have been repelled from the Polish legal system in April 2016 (and replaced with in abstracto administrative review of clauses), the resolution in question still have a profound significance for framing the underlying premises of abusiveness control in the EU, as well as the interplay between consumer protection and fundamental rights sphere.

Posted on 05/09/2016 by Karolina Rokita-Kornasiewicz in Civil Procedure, Consumer Law