Consumer withdrawal in car leasing and car financing agreements: the CJEU clarifies the limits

In joined cases C-38/21, C-47/21 and C-232/21, the Court of Justice of the European Union ruled on the right of withdrawal in leasing and consumer credit agreements relating to the purchase of motor vehicles.

The Court draws a clear distinction between car leasing agreements without a final obligation to purchase and credit agreements aimed at the purchase of a vehicle.

In the first case, the consumer does not benefit from the right of withdrawal provided for under European consumer credit legislation. In the second case, however, the right of withdrawal may be exercised even after the ordinary 14-day period if the consumer has not received complete and accurate information on his or her rights and obligations at the time the agreement was concluded.

According to the CJEU, the withdrawal period does not begin to run where the information provided by the trader is incomplete or inaccurate to such an extent as to affect the consumer’s ability to assess the scope of his or her rights. In such cases, the late exercise of the right of withdrawal cannot be regarded as abusive, provided that the agreement has not been fully performed.

The ruling therefore strengthens the role of information obligations under European consumer law and confirms that the accuracy of pre-contractual documentation is a central element in ensuring the stability of contractual relationships with consumers.

From a more critical perspective, however, the decision may increase uncertainty in long-term financing relationships, especially where the assessment of the completeness of the information provided to the consumer leaves room for interpretation that is not always clear.

For banks, financial companies and commercial operators, the decision highlights the importance of particularly rigorous management of pre-contractual information and clauses relating to the right of withdrawal.