Facts
On November 7, 1973, Metro Bank AG granted Laszlo Boejti a loan of CHF 3,000, on April 4, 1974, a loan of CHF 10,000, and on April 19, 1974, a loan of CHF 15,000. When the repayments agreed from June 1, 1974 onwards failed to materialize, the bank initiated debt collection proceedings against the debtor for the CHF 15,000 loan, including interest and expenses. Boejti filed an objection and later sued Metro Bank AG to have these claims denied, as the bank had disregarded the provisions of the Ordinance of January 10, 1973 on Small Loans and Installment Sales when granting the loans.
Considerations
The Federal Supreme Court concluded that Metro Bank AG had violated Art. 3 para. 1 of the Ordinance on Small Loans and Installment Sales by granting the claimant a new loan before the previous loan had been fully repaid and offsetting the outstanding claim. This leads to the nullity of the loan contract for CHF 15,000 pursuant to Art. 20 para. 1 CO. However, the bank can assert a…