Half a year ago, the verdict on a foreign currency creditor of a car, who had been sued by his bank, was only first degree. The verdict is now final and the court gave the truth to the foreign currency creditor represented by law firm, the contract was declared null and void.
What was the final judgment?
This week, a car loan foreign currency loan represented by law firm, a well-known and now final judgment in the case of a foreign currency loan, was made in the Metropolitan Court. On the basis of the judgment, the loan agreement previously concluded between the parties is null and void.
Reason for nullity
The contract is invalid due to the use of the exchange rate gap between the foreign exchange rate used by the bank and the bank, as it was not included in the contract as a cost to the consumer. A financial institution would have been required by law to indicate the costs associated with the contract and their annual percentage rate. Failure to do so will result in the contract being null and void.
Based on these, are all similar contracts void?
The question arises that if such a judgment was made in this case, then why is this not the case with each foreign currency creditor contract? After all, the law is binding on everyone. In spite of the law, why can’t we announce that every debtor can go out of court? The reason is:
Many rules have to be taken into account in litigation. It is important for the parties to ask what they say and what they can prove. In the event of nullity, the court has more options to remedy the situation. The decision is made by the courts independently, they are not bound to a decision made in other cases, nor to judgments that are favorable or detrimental to the debtor. In all cases, the judge in charge must consider the arguments, arguments, facts and evidence in the proceedings. In a litigation procedure, it is usually not easy to make a decision, requiring serious legal expertise from both the litigants and the court.
What will the Mansion soon decide?
Today, we can read some news about foreign currency loans almost daily. The latest news reports included the Court’s decision in December to establish a legal unity to provide guidance on foreign currency lending matters.
What is a Unity Decision?
In all cases, the courts make their own decisions and are not bound by judgments given by other courts in similar cases. However, there is an exception, and that is the decision on legal unity. The unity decision can always only be made by the Supreme Judicial Forum and in cases where the judgments so far formed are not unified in the case of a case type or a matter of principle. So in cases where contradictory judgments are made on the same issue. This can be clearly stated in matters concerning foreign currency loans.
What is the Unity Decision Good for?
If there is a unanimous decision on a matter of principle, then the courts are already bound. In other words, it is then up to them to decide whether they comply with the principles laid down in the Unity Decision. The case law of the courts can thus be made uniform.