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Consumers’ ability to waive rights in respect of unfair terms (XZ v Ibercaja Banco SA)

Consumers’ ability to waive rights in respect of unfair terms (XZ v Ibercaja Banco SA)
Published on: 17 July 2020
Published by: LexisPSL
  • Consumers’ ability to waive rights in respect of unfair terms (XZ v Ibercaja Banco SA)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Can a potentially unfair term be the subject of a novation agreement?
  • Was the new ‘floor’ term individually negotiated?
  • Can a consumer waive their rights of action under UTCCD?
  • What information must be provided on the ‘floor’ term to satisfy the transparency requirement?
  • Case details

Article summary

Commercial analysis: the Court of Justice ruled that it is possible for a potentially unfair term to be the subject of a novation agreement between a seller/supplier and a consumer, and that a consumer is able to waive their right under the Unfair Terms in Consumer Contracts Directive (UTCCD) to rely on the non-binding nature of an unfair term, provided such a waiver was a result of the consumer’s free and informed consent. However, a consumer cannot waive their rights under UTCCD in respect of future disputes. or take a trial to read the full analysis.

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