Assignment of debts in the loan agreement concluded with consumers in the Judgment of the European Court dated 7 August 2018

Abstract

The  Judgment of the  European Court  dated  7 August 2018  estab- lishes  that  the  Directive  93/13  must be interpreted, first,  as not  applying to a busi- ness  practice  consisting in assigning or purchasing a consumer’s debt,  without any provision for such an assignment having been made  in the loan agreement concluded with the  consumer, without giving  the  consumer prior  notice  of  that  assignment, without his consent and without giving him the opportunity to buy back and thereby extinguish his debt by reimbursing to the assignee  the price it paid in respect  of that assignment, plus  the applicable  interest, expenses and  costs.  Secondly, that  directive does  not  apply  to  national provisions, such as  those  contained in  Article  1535  of the  Civil Code and  Articles  17 and  540  of the  Civil Procedure  Code, which regulate that  opportunity to buy  back  a debt  and  govern  the  replacement of the  assignor by the  assignee  in  ongoing proceedings.