Hypothekenkredite: Hinterttrchen Widerruf, Wer Schhtzt Uns Vor Diesem Verbraucherschutz? (Mortgage Loans to Consumers in Germany, the Back Door of Forfeiture, Who Protects Us from this Consumer Protection?)

AbstractFor many years now, there has been an attempt in the European Union to create a common legal framework for mortgage credit contracts and cross-border activities in the mortgage financial sector. One of the greatest challenges has been the establishment of a corresponding level of consumer protection in EU residential mortgage markets. This issue has become particularly important at the time of financial crisis. Consumers are increasingly exposed to the risk of losing their homes because of failing to fulfil, in due time, their obligations arising from mortgage loans, and thus losing confidence in the EU financial sector. Therefore, the European Union has intensified its efforts to improve consumers’ ability to inform themselves of the potential risks when entering into mortgage loans and mortgaging their real property. On 4 February 2014 the EU adopted the new rules on mortgage credits in the Mortgage Credit Directive. The main objective of the Directive is to increase the protection of consumers in EU mortgage markets from the risks of defaults and foreclosures. A higher level of protection must be ensured by consumers’ increased information capacity related to mortgage credits, as well as by developing a responsible mortgage lending practice across the EU. The Mortgage Credit Directive is also aimed at contributing to the gradual establishment of a single internal market for mortgage credits. In this chapter, the author analyses previous and current attempts by the EU to establish a uniform market of mortgage loans, and assesses the possible impact of the Mortgage Credit Directive on the protection of consumers in the market of mortgage credits and on the development of cross-border activities in the mortgage financial sector. Special emphasis is placed on the possible impact of the new EU rules on mortgages on national protection measures aimed at consumer protection at the time of financial crisis. The transposition of the Mortgage Credit Directive will undoubtedly contribute to a higher level of consumer protection when consumers enter into home loan contracts. However, the question arises whether, because of different levels of harmonisation of some rules laid down in the Directive, its implementation will actually contribute to an increase in cross-border home loans. The possibility for Member States to opt for increased consumer protection in some aspects of credit agreements when implementing the Directive, or the existence of different options for the exercise of individual rights that they may use cannot bring about an integration of mortgage credit markets.

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Umowy dotyczące hipotecznych kredytów „walutowych” tak zwanych frankowych w „istotnych poglądach w sprawie” wydawanych przez Prezesa UOKiK

Ekonomia ◽

10.19195/2084-4093.24.1.4 ◽

2018 ◽

Vol 24 (1) ◽

pp. 57-77

Author(s):

Zygmunt Rajchemba

Keyword(s):

Consumer Protection ◽

Foreign Currency ◽

Mortgage Loans

Agreements regarding mortgage loans CHF loans in “significant views in the matter” issued by the President of UOKiK the Office of Competition and Consumer ProtectionThe article discusses the institution of the “significant view in the matter” issued by the President of the Office of Competition and Consumer Protection in cases pending before common courts in the field of competition and consumer protection introduced in April 2016 to the Act on Competition and Consumer Protection Article 31d of the Act. The first part of the article describes the nature of issued views and the premises enabling their issuance by the President of UOKiK. The second part of the article focuses on the views expressed by the President of UOKiK on cases pending before common courts regarding foreign currency loans CHF loans together with the main elements of justification and conclusions, proposals of adjudicating the case by the court. The study refers to important views on the issue of currency loans CHF issued by the President of UOKiK, published on the website of the office: www.uokik.gov.pl.

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Premature repayment of fixed interest mortgage loans without compensation, a case of misguided consumer protection in the EU

European Journal of Law and Economics ◽

10.1007/s10657-021-09719-0 ◽

2022 ◽

Author(s):

Hans-Bernd Schäfer ◽

Alexander J. Wulf

Keyword(s):

Interest Rate ◽

Interest Rates ◽

Consumer Protection ◽

Formal Model ◽

Panel Study ◽

Consumer Welfare ◽

Theoretical Point ◽

The European Union ◽

Mortgage Loans ◽

High Interest Rate

AbstractConsumer protection shifts risks from consumers to businesses. This raises marginal costs and equilibrium prices. It is justified when markets are not strong enough to allocate contractual risks or accident risks efficiently, especially in cases of severe asymmetric information between suppliers and consumers. Consumer protection can then increase the consumer’s expected welfare from a contract. We test these considerations in a theoretical and empirical study on consumers' right to early repayment of mortgage loans without damage compensation to the creditor in the European Union. We show in a formal model that such a right can lead to an impairment of consumer welfare, compared with the traditional rule of expectation damages for breach of contract. This applies if the consumer is risk averse and repays a loan with a high interest rate in a low interest period to take up a new loan for the same project at lower interests. From a theoretical point of view, this right has no solid economic underpinning, if it is not restricted to cases of personal hardship of the consumer and serves an insurance purpose. We present empirical evidence supporting this argument. In a panel study on monthly mortgage interest rates of 23 EU Member States between 2005 and 2017 we show how interest rate spreads change with the level of consumer protection.

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Difficulties of the Financial Reform in the USA

Voprosy Ekonomiki ◽

10.32609/0042-8736-2013-10-147-158 ◽

2013 ◽

pp. 147-158

Author(s):

V. Kulakova

Keyword(s):

Economic Policy ◽

Consumer Protection ◽

Financial Regulation ◽

Financial Reform ◽

Wall Street ◽

Political Sciences ◽

Consumer Protection Act ◽

The Usa ◽

Major Factors ◽

International Financial Regulation

We study the reform of financial regulation initiated by the Dodd—Frank Wall Street Reform and Consumer Protection Act of 2010. Major factors impeding Obama’s financial and economic policy are explored, including institutional difficulties, party warfare, lobbyism, and systemic inconsistencies of international financial regulation. We also examine challenges that are being faced by economic and political sciences due to the changes in financial regulation and also assess the level of radicality of the financial reform.

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