The abuse of power & influence by credit institutions against borrowers and the moral issue of exploiting their psychological condition when concluding loan agreements
by Giorgos Kazoleas, Lawyer LL.M. At the stage before concluding a loan agreement between the credit institution and the prospective borrower, the inequality regarding the negotiating power of the parties reaches its peak in order to complete the agreement. The pressure to agree on the contract clauses, which usually reflects the imbalance of rights and obligations between the two parties and while several of which are abusive, is not a neutral pressure, but the pressure of the financially and authoritatevely strong against the financially weak and mentally vulnerable. And this is despite the fact that the basic terms have previously been judged by case law or even legislated as abusive. One of the ways to avoid abuse by the credit institutions' position is the requirement of good faith, in the assessment of which, special attention must be paid to the negotiating power of both parties. It should be also assessed whether the consumer was motivated in any way to accept the clause