Case C-536/22,  VR Bank Ravensburg-Weingarten: Judgment of the Court (Fifth Chamber) of 14 March 2024 (request for a preliminary ruling from the Landgericht Ravensburg – Germany) – MW, CY v VR Bank Ravensburg-Weingarten eG (Reference for a preliminary ruling – Consumer protection – Directive 2014/17/EU – Article 25(3) – Credit agreements for consumers relating to residential immovable property – Early repayment – Compensation of the creditor – Loss of profit of the creditor – Method of calculating loss of profit)
Date: 2024-03-14
Institutions: Court of Justice
Subjects: consumer credit, consumer protection, loss, profit, real estate credit, redemption








C_202403046EN.000101.fmx.xml












Official Journal of the European Union


EN
C series













C/2024/3046


13.5.2024






Judgment of the Court (Fifth Chamber) of 14 March 2024 (request for a preliminary ruling from the Landgericht Ravensburg – Germany) – MW, CY v VR Bank Ravensburg-Weingarten eG


(Case C-536/22,
                (1)
VR Bank Ravensburg-Weingarten)

(Reference for a preliminary ruling - Consumer protection - Directive 2014/17/EU - Article 25(3) - Credit agreements for consumers relating to residential immovable property - Early repayment - Compensation of the creditor - Loss of profit of the creditor - Method of calculating loss of profit)
(C/2024/3046)
Language of the case: German

Referring court

Landgericht Ravensburg

Parties to the main proceedings


Applicants: MW, CY

Defendant: VR Bank Ravensburg-Weingarten eG

Operative part of the judgment









1.


Article 25 of Directive 2014/17/EU of the European Parliament and of the Council of 4 February 2014 on credit agreements for consumers relating to residential immovable property and amending Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No 1093/2010
must be interpreted as meaning that it also applies where the consumer discharges his or her obligations early after terminating his or her consumer credit agreement relating to residential immoveable property under the conditions laid down by national legislation.












2.


The first sentence of Article 25(3) of Directive 2014/17
must be interpreted as not precluding national legislation which, for the purposes of the compensation of the creditor in the event of early repayment of a consumer credit relating to residential immovable property, takes into account the creditor’s loss of profit borne directly by the creditor as a result of that early repayment and, in particular, the financial loss sustained by that creditor, as the case may be in connection with the remaining contractual interest that will no longer be received, provided that the compensation is fair and objective, that no penalty is imposed on the consumer and that the compensation does not exceed that financial loss.












3.


Articles 25(3) of Directive 2014/17
must be interpreted as meaning that, in the event of early repayment of a consumer credit relating to residential immovable property, Member States must ensure that the calculation by the creditor of its loss of profit, taking into account the flat-rate return on the sum repaid early, has the result that the compensation is fair and objective, that it does not exceed the creditor’s financial loss and that no penalty is imposed on the consumer. Directive 2014/17 does not require such a calculation to be linked to the manner in which the creditor actually uses the amount repaid early.






(1)  
            OJ C 432, 14.11.2022.


ELI: http://data.europa.eu/eli/C/2024/3046/oj
ISSN 1977-091X (electronic edition)