Dunai v ERSTE Bank Hungary Zrt

European Union – Consumer protection. Council Directive (EEC) 93/13 did not preclude national legislation which prevented the court seised of the case from granting an application for the cancellation of a loan contract on the basis of the unfair nature of a term relating to the exchange difference, such as that at issue in the main proceedings, provided that a finding that terms in such an agreement were unfair would restore the legal and factual situation that the consumer would have been in had that unfair term not existed. The Court of Justice of the European Union so held, among other things, in a preliminary ruling in proceedings concerning the allegedly unfair contractual term providing that the exchange rate applicable at the time of the advance of a loan denominated in a foreign currency was based on the buying rate practised by the bank whereas the exchange rate applicable at the time it was paid off was based on the selling rate.

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