Everyone who has taken out a loan has the right to repay it before the end of the contract period. However, there are reasonable doubts as to whether in such a situation the bank should not give away part of the costs it charged when signing the contract.
What fees should you pay attention to when borrowing money
From a parabank institution? Guide for consumers ”in which he indicated that in the event of earlier repayment of the obligation – the customer is entitled to reimbursement of some costs that he had to bear before. All costs related to the period by which the contract time has decreased should be reduced. This means that the customer does not have to pay interest on the time remaining until the end of the contract on the set date.
Then in 2016, the Office of Competition and Consumer Protection, together with the Financial Ombudsman, published a position in which they jointly state that if the loan was repaid earlier – a proportional reimbursement of ALL incurred costs should be due. Including commission.
The Lublin District Court, on May 28, 2018, asked the Court of Justice of the European Union in which it asked:
“Is the interpretation of the provision contained in art. 16 clause 1 in connection with art. 3 point g of Directive 2008/48 / EC of the European Parliament and of the Council of April 23, 2008 on consumer credit agreements and repealing Council Directive 87/102 / EEC (Journal of Laws EU No. L No. 133, p. 660 with later changes) should be made in such a way that the consumer, in the event of earlier repayment of his obligations under the credit agreement, is entitled to a reduction in the total cost of credit, including costs, the amount of which is not dependent on the duration of this agreement for credit?”
The provisions referred to in the inquiry
Article 16 1 of the Directive
The consumer has the right to repay, in whole or in part, his obligations under the credit agreement. In such cases, he is entitled to a reduction in the total cost of the loan, which consists of interest and costs for the remaining period of the contract.
Article 49 of the Consumer Credit Act
If the entire loan is repaid before the deadline specified in the contract, the total cost of the loan is reduced by those costs that relate to the period by which the duration of the contract has been shortened, even if the consumer incurred them before that repayment. In the event of repayment of part of the loan before the date specified in the contract, paragraph 1 shall apply accordingly.
So we know that the consumer is entitled to a refund, but is it all? These provisions can be interpreted in many ways, so the CJEU is to deal with this clarification.
The aim of the EU directive is not only to protect consumers but also to level the conditions of intra-Community competition granting consumer loans. According to the directive, it is important that in every EU country – its content is interpreted in a similar way.
And it talks about ensuring each side’s interests are protected. Borrowers – the opportunity to recover costs incurred due to the length of the loan, and to lenders – the option of not reimbursing costs that were not related to the length of the contract.
What is the cost of the commission?
Banks say the commission is not related to the length of the contract and you should not refund it. However, it turns out after analyzing several dozen contracts from banks operating in Poland that the amount of commission depends on the time for which the contract is signed – the longer – the commission is greater.
There is nothing to wait for the judgment of the Court of Justice. It may be that we will wait for him for even several dozen months. You must fight for your money before the claim expires!