Mortgages indexed to the Swiss franc

11.7.2016

Question for written answer E-005632-16
to the Commission
Rule 130
Flavio Zanonato (S&D)

Between 2007 and 2010, Barclays Bank PLC approved 9900 mortgages indexed to the Swiss franc and failed to inform borrowers that the level of risk attaching to those mortgages was closely linked to currency fluctuations.

The judgment handed down by the Court of Justice of the European Union in Case C-26/13 makes it clear that under Article 4(2) of Directive 93/13/EEC a contractual provision should be drawn up in plain and intelligible language so that consumers can make a well-informed judgment about any financial implications on the basis of clear-cut criteria.

When considering cases involving mortgages of this kind in the light of Directive 2004/39/EC, judges in a number of Member States have ruled in favour of borrowers, while financial mediators and authorities in some Member States have ordered Barclays Bank PLC to reimburse mortgage holders whose repayments have been too high.

How will the Commission ensure that the directives referred to above are applied consistently, so that borrowers across the EU enjoy equal rights?