ABUSIVE CLAUSES IN MORTGAGE CONTRACTS

ABUSIVE CLAUSES IN MORTGAGE CONTRACTS

Table of Contents

Summary of the most common types:

1. Clauses that undermine the consumer’s autonomy

These clauses annul the consumer’s will and are regulated under Article 85 of the TRLGDCU. Examples include:

  • Excessively long or indefinite terms.

  • Automatic contract renewal if the consumer does not object.

  • Unilateral interpretation or modification of the contract by the business.

  • Early termination of the contract by the business without granting the consumer the same right.

  • Binding the consumer unconditionally to the contract, even if the business fails to fulfill its obligations.

  • Disproportionate compensation in case of breach.

  • Conditions depending solely on the business’s discretion.

  • Delivery dates conditioned exclusively on the business’s will.

  • Exclusion or limitation of the business’s obligation to respect agreements.

  • Stipulation of the price at delivery or the business’s power to increase the final price.

  • Determination by the business of whether the good or service complies with the contract.

2. Clauses that limit consumer rights

These are regulated under Article 86 of the TRLGDCU and restrict consumer rights in various ways.

3. Clauses abusive due to lack of reciprocity

Regulated under Article 87 of the TRLGDCU, these include:

  • Imposing obligations on the consumer without the business fulfilling its own.

  • Retention of payments made by the consumer in case of withdrawal, without compensation if the business withdraws.

  • Exclusive right of the business to terminate the contract.

  • Upward rounding of time or price charged.

  • Burdensome or disproportionate obstacles to exercising consumer rights.

Note: This list is not exhaustive. Other clauses may also be considered abusive depending on their content and effects.

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