Romanian Supreme Court bars banks from charging interest after early loan repayment

The Supreme Court of Cassation issued a ruling that prevents banks and credit institutions from adding interest for the period following a consumer's early loan repayment. The court clarified that the term “exigible debt” in the relevant consumer credit legislation includes only the interest accrued up to the early repayment declaration, not the interest that would accrue until the original contract end date. This legal interpretation is intended to protect borrowers who repay their loans ahead of schedule, ensuring they are not charged for the full contractual interest period.

The decision provides a uniform reading of the law, enhancing legal certainty for both consumers and lenders. After the court's considerations were finalized, the decision will be officially published in Romania's Monitorul Oficial, Part I.