Case C‑705/21

MJ

v

AxFina Hungary Zrt.

(Request for a preliminary ruling from the Győri Ítélőtábla)

Judgment of the Court (Eighth Chamber) of 27 April 2023

(Reference for a preliminary ruling – Consumer protection – Directive 93/13/EEC – Unfair terms in consumer contracts – Articles 6 and 7 – Credit agreements denominated in a foreign currency – Legal consequences of a declaration that a loan agreement is invalid because of the unfairness of a term in that agreement – Contractual term placing the exchange rate risk on the consumer)

1. Consumer protection – Unfair terms in consumer contracts – Directive 93/13 – Finding that a term is unfair – Scope – Term placing the exchange rate risk on the consumer – Term rendering the agreement invalid because it is unfair – Credit agreement denominated in a foreign currency and repayable in the national currency – Agreement declared valid – Content of the consumer’s obligations adapted by means of a change in the currency and in the interest rate set or in a ceiling on the exchange rate – Not permissible

   (Council Directive 93/13, Arts 6(1) and 7(1))

   (see paragraphs 43, 44, 49, 50, operative part 1)

2. Consumer protection – Unfair terms in consumer contracts – Directive 93/13 – Finding that a term is unfair – Scope – Term placing the exchange rate risk on the consumer – Term rendering the agreement invalid because it is unfair – Credit agreement denominated in a foreign currency and repayable in the national currency – Continuation of the agreement until the entry into force of national legislation providing for the conversion into national currency of credit agreements denominated in a foreign currency

   (Council Directive 93/13, Art. 6(1))

   (see paragraphs 52-56, operative part 2)

See the text of the decision.