2023-12-21 15:17:05
Lessees of a car whose contract does not provide for a final purchase obligation usually only have limited cancellation rights. However, according to a recent decision by the European Court of Justice (ECJ), consumers have further rights in the case of a financing contract to purchase the vehicle. They can declare the revocation of the loan agreement until the last repayment installment is due if they have not been properly informed by the bank of their rights, the judges in Luxembourg ruled on Thursday in several cases from Germany (case C-38/21 et al).
The Ravensburg regional court had suspended the initial lawsuits and submitted them to the ECJ. In these lawsuits, consumers dispute the existence and legal consequences of the cancellation with their respective car banks. The defendants are BMW Bank, Volkswagen Bank and Audi Bank. The customers had either concluded a leasing contract without an obligation to purchase or a credit agreement to finance a used car.
Cancellation up to 14 days after conclusion of the contract
Normally, when the contract is concluded, there must be an instruction or reference to the right of withdrawal and its legal consequences. This allows the entire contract to be reversed. The deadline for cancellation therefore ends 14 days after conclusion of the contract.
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In the original cases, the plaintiffs declared their revocation after months or years. They stated that they were not sufficiently informed about their rights and obligations when concluding the contract.
In the case of a pure leasing contract, the consumer has no right to withdraw from the contract if there is no obligation to purchase the vehicle at the end of the leasing period, the judges in Luxembourg explained.
This also applies if the contract was concluded over the Internet or outside of business premises, the Court continued. The Ravensburg Regional Court must now take this requirement into account in its decisions.
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