Preliminary ECJ Ruling on early repayment under the Consumer Credit Directive

Industry News | 23/05/19

A preliminary ruling has been delivered by Advocate General Hogan of the European Court of Justice (ECJ). This case concerns the interpretation of Article 16(1) of Directive 2008/48/EC of the European Parliament and of the Council of 23 April 2008 on credit agreements for consumers, in particular the question for whether the consumer’s right to a reduction in the total cost of credit provided for by the national legislation transposing Article 16(1) must be interpreted as including costs that do not depend on the duration of the credit agreement. The Advocate General concluded that Article 16(1) of the Consumer Credit Directive should be interpreted as meaning that, where a consumer has made an early repayment, the reduction to which that consumer is entitled may concern costs for which the amount does not depend on the duration of the credit agreement.