Due to errors in the cancellation conditions, consumers can still cancel credit and leasing contracts many years after the contract was concluded, even after the car has been sold and in the case of loans that have been paid off. We explain how you can get your money back with the so-called revocation joker and check free of charge and without obligation whether a revocation is possible.
Revocation car loan& leasing – here’s how you can pull the revocation joker.
Banks have not taken the necessary care in drafting the contracts for car loans and leasing agreements. If a revocation instruction does not meet the legal requirements, a loan agreement can be revoked for an unlimited period of time, even many years after it was signed. With rulings from the european court of justice (dated 09.09.2021, az. C-33/20, C-155/20 and C-187/20, and from 26.03.2020, az. C-66/19) and the German Federal Court of Justice (of 27.10.2020, az. XI ZR 498/19) is clear: customers can revoke car loan agreements in which the bank or savings bank has deviated from the statutory model of the revocation instruction for years after the conclusion of the agreement. We have found a wide variety of errors in the loan agreements of almost all car banks. Buyers who sell their car after the 10. June 2010 with a loan arranged by the dealer If you have financed the purchase, you may revoke the loan without any time limit. Because a jointly concluded purchase and loan agreement is a related transaction, the purchase agreement is also rescinded together with the loan revocation. The consequence of a successful recall is: you get back the down payment and the installments and in return you give back the car.
Eugh-judgment allows revocation of consumer contracts – even after the sale of the car and with paid-off loans
The European Court of Justice ruled on 09.09.2021 ruled that the clauses used by german banks in loan agreements are defective and that consumers have had to cancel their loan agreements with the conclusion of the contract for 10.06.2010 can still revoke today. the proceedings also involved a submission on the revocation of a car loan against volkswagen bank, which our law firm had obtained before the ravensburg district court. Our proceedings were combined with two other proceedings by the eugh, so that the eugh also ruled on proceedings against skoda bank and BMW bank gmbh.
The ruling is a serious one, because it not only legitimizes revocation on the basis of incorrect loan information, but also deals with the banks’ previous defense, so-called forfeiture and abuse of rights. As a result, revocation of a car loan is possible not only for current car financing but also if consumers have already sold their car and if the loan has already been repaid.
Our ruling before the eugh relates to a specific case of car loans, but we believe it can be applied to almost all consumer loans. Only real estate loan agreements are excluded from the consumer-friendly eugh ruling.
The details of the ruling, information on the requirements for loan agreements and background information on German case law on the subject of revocation can be read in the news article eugh ruling revocation car loan: millions of contracts can be revoked – law firm AKH-H obtains consumer-friendly ruling in luxembourg.
You can also see the most important information on the ruling in the video.
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Already with its decision of 26.03.In 2020, the eugh had revived the so-called revocation joker. According to the judges, consumer credit agreements must clearly and concisely state the modalities for calculating the revocation period. This is not the case if the revocation information refers to a paragraph that in turn refers to other paragraphs (so-called cascade reference). The following applies to consumers: almost all loan agreements concluded between June 2010 and today can still be effectively revoked.
BGH rulings on revocation: bundesgerichtshof bows to eugh requirements
With two judgments (XI ZR 489/19 and XI ZR 525/19 of 27.10.2020), the German Federal Court of Justice (BGH) bowed to the consumer-friendly requirements of the European Court of Justice and ruled in favor of the consumer. In both cases, the drivers were able to revoke their financing and demand repayment from the bank. In doing so, the Federal Court of Justice (BGH) has taken into account the ruling of the eugh of 26.03.2020 applied. The defendant bank used contract forms that deviated from the sample revocation instruction that the XI. Civil senate of the federal court of justice cannot grant "protection of the status quo. The Federal Court of Justice’s ruling on the revocation of car loans has a signal effect for numerous loan agreements from many different car banks. In another case, the Federal Court of Justice (BGH) also ruled that, in principle, a loan agreement can still be revoked years after it was concluded (ruling of 30 June 2009).3.2021 – XI ZR 75/20).
Consequences of revocation
If the consumer effectively revokes his car loan, this means that the loan agreement and the associated vehicle purchase contract are reversed. In these cases, the bank is obliged to reimburse the buyer for all payments made. In addition to the monthly installments, this also includes the down payment made to the car dealership. In addition, costs related to insurance or service contracts concluded at the same time as the loan agreement can also be reclaimed. Banks often defend themselves with the objection that the loss in value of the vehicle must be taken into account. In our opinion, this counterclaim of the bank can be regularly reduced to zero.
In the end, this means that in the best case scenario, the customer can not only return the car without any problems and receive a refund of all payments, but also that no costs are incurred for the use of the vehicle in the past.
Revocation of car loan& leasing: further judgments
- Reference decision of the regional court of braunschweig
Following the consumer-friendly rulings of the Federal Court of Justice (BGH) on the revocation of car loans, the Regional Court of Braunschweig now also assumes a successful revocation in a case against volkswagen bank (reference order of 10.12.2020, az. 5 O 4162/19). With the current decision, the last bastion of the volkswagen group in the matter of revocation of car loans& leasing fallen.
- AKH-H law firm convinces dusseldorf Higher Regional Court
the higher regional court of dusseldorf (note of 07.10.2020, file no: I-9 U 112/20) points out that the judgment of the eugh of 26.03.2020 (C-66/19) applies because the bank 11 in the present case uses the inadmissible cascade reference and cannot rely on any fiction of legality. The senate has therefore recommended that the parties reach a settlement.
- Further decisions of the higher regional courts (excerpt)
OLG celle, judgment of 13.01.2021 (az. 3 U 47/20): the higher regional court of celle ruled against volkswagen bank on the basis of the inadmissible cascade reference. volkswagen bank had made changes to the revocation information and therefore could not invoke the legal fiction.
the higher regional court of frankfurt am main also condemned MCE bank (MKG bank, mitsubishi) on account of the inadmissible reference to hull (judgment of 22.09.2020, ref. no. 10 U 188/19). Since MCE bank’s revocation information deviates from the statutory model, it cannot invoke the fiction of legality either.
Examples of errors in car loan agreements
In recent years, our law firm has reviewed thousands of loan and leasing agreements to determine whether they can be successfully revoked. We were able to uncover a whole series of errors in the contracts. Typical errors include:
- No information on all competent supervisory authorities
- Incomplete notice on the default interest rate and the method of its adjustment
- Incorrect or missing information on the type of loan and the designation of the contracting parties
- Incomplete information on the loan broker
- Misleading information on the payout conditions
- Incorrect information on the calculation of the early repayment penalty
- Cascade reference in the revocation information
- Incomplete representation on the out-of-court conciliation procedure
In principle, even a detected error in the loan agreement is sufficient to still be able to declare the revocation of the car loan even after the original deadline has expired. The list of possible errors in car loan or leasing agreements is long. We would be happy to review your contract free of charge and without obligation. You will receive a written assessment of whether there is a possibility of revocation in your case.
List of car banks without a legally compliant revocation declaration
According to our findings and those of stiftung warentest, which has also devoted its attention to the topic, many cancellation instructions in the car loan agreements of the following banks do not comply with the legally prescribed requirements:
- AKF bank gmbh& co. KG
- Alfa romeo bank
- ALS auto-leasing-service gmbh
- Audi bank
- Auto europa bank
- Bank 11
- BDK bank german motor vehicle industry
- BMW bank
- BW bank baden-wurttembergische bank
- Fiat bank
- Ford bank
- Honda bank
- Hyundai capital bank europe gmbh
- Jaguar bank
- Lancia bank
- Land rover bank
- lotus bank
- Maserati bank
- Mercedes benz bank
- MKG bank – mitsubishi
- Nissan bank
- opel bank
- Peugeot bank
- Porsche bank
- Renault bank
- Santander consumer bank
- SEAT bank
- Skoda bank
- Toyota credit bank
- Volkswagen bank
However, the contracts of all credit institutions have not yet been examined, so it can be assumed that the revocation declarations of other banks have not been formulated correctly and are therefore contestable. It is therefore worthwhile in any case to have your own contract examined by an expert. Only in this way can it be reliably clarified whether a specific case has a chance of success in out-of-court negotiations or even in court.
online calculator revocation car loan& leasing: how much money can consumers expect??
You would like to calculate your economic advantage in the event of a successful revocation? Use our free online calculator to find out in just a few minutes how much money you would receive in the event of a successful cancellation. Our online calculator applies to all those who sold their car after the 13.06.bought and financed in 2014.
Example of revocation of a car loan with the following key data:
Audi A6 avant – purchase price euro 35.000,- – used car – purchase date march 2015 – down payment euro 10.000,- – interest rate 1,5% – date of revocation may 2018:
FAQ revocation of car loan – frequently asked questions
- What are the concrete benefits of revoking a car loan??
You can withdraw from the loan agreement early and return the car. In return, you will receive back the installments already paid and the down payment. In the best case, the bank must pay all interest and redemption payments as well as the down payment without deductions. However, even if the bank is entitled to compensation for use, this is often the more lucrative option, especially for cars affected by the emissions scandal.
- Who can benefit?
The revocation joker can be used by any consumer who has signed a loan or leasing contract after the 10th month of the lease term.06.2010, regardless of whether it is a diesel, gasoline, (plug-in) hybrid or electric vehicle.
- Does this also apply to entrepreneurs??
In principle, the law does not provide for a right of revocation for entrepreneurs. However, there are narrow exceptions that must be checked in each individual case. For example, if the car was purchased while the business was still being set up.
- What if I financed a used car?
It is irrelevant whether it is a used or new car. It is important that the loan or leasing agreement be terminated as of the 10th day after the end of the loan or leasing period.06.concluded in 2010.
- What if I have already paid the last installment?
In this case, too, the contract can generally be revoked.
- What about traces of use or if there is even accidental damage?
Usual signs of use are irrelevant. Whether this also applies to accidental damage must be examined on a case-by-case basis, as it may be that a revocation does not make much economic sense.
- What if I have already sold my car??
Here, too, it must be examined in each individual case whether it also makes sense for economic reasons to cancel the loan or the loan agreement. to revoke the leasing contract. However, revocation is possible in principle.
- Does my legal protection insurance cover?
Legal protection insurance for contracts or motorists is generally effective in the event of a revocation, provided that it was taken out in good time before the insured event and the insurance conditions do not expressly exclude revocation. The insurance case occurs as soon as the bank rejects the revocation.
- Against whom is the revocation directed?
The revocation is directed against the car bank.
- When do I have to hand over my car?? I depend on it.
You will have to return the car as soon as the bank accepts the revocation. This means that you can continue to drive the car until everything is settled.
Note on the revocation of leasing contracts
How the revocation joker helps car drivers affected by the diesel scandal
Especially for the owners of a so-called cheat diesel, the revocation opens up unimagined possibilities to counter the less customer-friendly behavior of the car companies. it is the diesel buyers of the brands concerned who have suffered the damage. in case of driving bans in inner cities, the vehicle cannot be used as usual. In addition, there is the loss of value of the vehicles concerned. However, it is not only disappointed diesel drivers who have the option of revoking their contracts. All car buyers who have signed a car loan or leasing contract in the past years can benefit from the existing legal situation.
As part of our free examination, we will first show you whether a revocation option still exists – in addition, we will also examine free of charge whether claims for damages can be asserted in your case due to exhaust gas manipulation.
Costs covered by legal expenses insurance
Within the framework of a free initial assessment, we not only check your chances of successfully revoking your car loan or lease, but we also take care of the coverage request with your legal protection insurance and subsequently take over the entire correspondence with the insurance company.
If you have legal protection insurance, you must check whether it will cover the costs in a specific case. If an insurance policy has not explicitly excluded the assumption of costs for proceedings under the right of revocation and if the assumption of costs has been applied for in due time and form with a conclusive justification, the legal protection insurances will usually assume the costs even if the insurance policy did not yet exist at the time the credit agreement was signed. It is also necessary to check whether an existing traffic legal protection insurance will cover the costs. Our experience is that not only the common contract and family legal protection insurances cover the costs. In particular, motorists’ legal expenses insurance policies taken out, for example, in connection with membership of an automobile club, declare cost coverage.
Note: if you take out a traffic/legal protection insurance policy in good time before revoking the loan, this policy must cover the costs of the legal dispute, unless a loan revocation is expressly excluded. Please note that there is often a three-month waiting period after taking out legal protection insurance.
Tip for those without legal protection insurance: for those who do not have legal protection insurance and are afraid of proceeding at their own risk, we offer a coverage inquiry with our litigation financier. Consumers bear no costs and no risk when proceeding with the assistance of a litigation financier. only in the event of a successful lawsuit will the financier receive a portion of the proceeds.
Quick and easy to a successful recall: this is how you proceed
First of all, check whether your loan or leasing contract is in order after the 10. June 2010 concluded have. If so, you have the opportunity to have the revocation instructions contained therein checked for possible errors by our law firm free of charge.
As part of our free examination, we will first show you whether a revocation option still exists. Furthermore, it is included that we will free coverage inquiry with your legal protection insurance company and, if you wish, even declare the revocation on your behalf, so that we can complete written correspondence bear the costs of the legal dispute with both the insurance company and the bank. Of course, we will keep you informed about every step of the process.
You will receive the results of our written examination within a few days. After we have examined your contract and explained to you how to proceed, you decide whether you want to instruct us to enforce your rights. The procedure up to this point is completely free of charge for you.