Attorneys at Law “Gromov & Gromova” protected the client’s rights in a dispute concerning the invalidation of a credit agreement and a mortgage agreement, a category of cases that is traditionally difficult for borrowers
Case category: consumer loans.
At that time, court practice in disputes between consumers and banks was generally not favourable to borrowers.
Having a credit agreement declared invalid, especially together with the related mortgage agreement, was a difficult task requiring long-term procedural work, a proper evidentiary basis and a consistent legal position.
The Essence of the Dispute
The client sought legal assistance in connection with the need to protect his rights as a consumer of financial services.
The subject of the dispute was the invalidation of a credit agreement and a mortgage agreement. This category of cases is particularly sensitive because it concerns not only a monetary obligation to the bank, but also the risk of losing real estate pledged as security for the performance of credit obligations.
In such disputes, courts usually approached consumer claims with caution, since the invalidation of a credit agreement significantly changes the legal position of the parties: it affects the contractual structure, the legal consequences of receiving the loan funds and the status of related security instruments.
For that reason, success in such a case did not depend on a formal reference to consumer-rights violations. It depended on proving specific circumstances that were legally significant for assessing the validity of the agreements.
Duration of Representation
The representation of the client lasted for more than two and a half years.
During that time, the company’s attorneys and lawyers worked on developing the legal position, analysing the terms of the credit agreement, assessing the mortgage agreement, preparing procedural documents, participating in court hearings, responding to the bank’s position and protecting the client’s interests before the first-instance and appellate courts.
Cases of this nature are rarely resolved quickly. They require consistency, patience and readiness to defend the client’s position at every stage of the proceedings.
In credit disputes with banks, not only legal argumentation matters. Procedural discipline is equally important:
timely submission of evidence, proper formulation of claims, response to objections, recording of violations and building a logical connection between defects in the transaction and the violation of consumer rights.
The Result
On 15 November 2016, the appellate court upheld the judgment of the first-instance court, which had declared the credit agreement and the mortgage agreement invalid.
The judgment entered into legal force.
Agreement
The Essence of the Dispute
services.
agreements.
Duration of Representation
courts.
The Result
For the client, this meant not only the successful completion of a long court process, but also protection against the consequences of agreements that the court found to be invalid.
For the firm’s legal practice, this case became an important example showing that even in categories where court practice is complex and generally unfavourable to consumers, a result is possible when the strategy is properly built, the evidence is carefully prepared and the defence is pursued consistently.
Why This Case Was Important
At the time the case was considered, invalidation of a credit agreement upon a consumer’s claim was not a typical outcome. Courts often rejected such claims on the basis that the borrower had signed the agreement, received the loan funds and performed the obligations for a certain period of time.
However, the formal signing of an agreement does not always mean that consumer rights were properly respected.
In consumer lending, the transparency of terms, proper disclosure to the borrower, clarity of the total cost of credit, good faith of the financial institution and compliance of the agreement with the legislation in force at the time of its conclusion are all important.
Therefore, in such disputes it is necessary to analyse not only the text of the agreement, but the entire pre- contractual and contractual conduct of the parties.
Legal Significance for the Client
The invalidation of a credit agreement affects the principal obligation between the borrower and the bank. The invalidation of a mortgage agreement, in turn, is of fundamental importance for protecting the property that was pledged as security for the credit obligation.
In this case, the first-instance and appellate courts agreed with the client’s position, which made it possible to protect his interests in the dispute with the bank and maintain legal control over a situation that had lasted for more than two and a half years.
Conclusion
This case demonstrates that difficult court practice does not mean the absence of prospects.
In disputes with banks, especially in cases involving consumer loans and mortgages, the result depends on the precision of the legal position, evidence, procedural persistence and readiness to go through the entire process — from the first-instance court to appellate review.
In 2016, the attorneys and lawyers of “Gromov & Gromova” achieved a result for the client that was unusual for this category of cases at the time: the credit agreement and the mortgage agreement were declared invalid, and the court judgment entered into legal force.
Agreement
The Essence of the Dispute
services.
agreements.
Duration of Representation
courts.
The Result
Why This Case Was Important
than two and a half years.
Conclusion
Agreement
The Essence of the Dispute
services.
agreements.
Duration of Representation
courts.
The Result
Why This Case Was Important
than two and a half years.
Conclusion
Agreement
The Essence of the Dispute
services.
agreements.
Duration of Representation
courts.
The Result
Why This Case Was Important
than two and a half years.
Conclusion
Agreement
The Essence of the Dispute
services.
agreements.
Duration of Representation
courts.
The Result
Why This Case Was Important
than two and a half years.
Conclusion
Agreement
The Essence of the Dispute
services.
agreements.
Duration of Representation
courts.
The Result
Why This Case Was Important
than two and a half years.
Conclusion
Agreement
The Essence of the Dispute
services.
agreements.
Duration of Representation
courts.
The Result
Why This Case Was Important
than two and a half years.
Conclusion
Agreement
The Essence of the Dispute
services.
agreements.
Duration of Representation
courts.
The Result
Why This Case Was Important
than two and a half years.
Conclusion
Court Decision
Open the decision in the Unified State Register of Court Decisions