CONSUMER LAW | The ECJ strengthens consumer protection (also) in insolvency proceedings

On 3 July 2025, the Court of Justice of the European Union (ECJ) issued its judgment in case C‑582/23 (Wiszkier), ruling that national legislation which prevents bankruptcy courts from assessing the fairness of contractual terms in consumer loan agreements violates Directive (EEC) 93/13 of 5 April 1993 (and subsequent amendments) on unfair contract terms. The ECJ held that, once a list of creditors’ claims is approved by a judicial authority without review of the possible unfairness of the terms of the underlying contract, bankruptcy judges must still be able to examine unfair terms and adopt interim measures to protect the debtor. National rules preventing such review or measures may deter consumers from invoking their rights under EU law and are therefore incompatible with the principle of effectiveness.

This judgment reaffirms the ECJ’s consistent view that the unfairness of contract terms must always be assessed ex officio by national courts.

Newsletter n. 109 – July 2025