“With this decision, the Constitutional Court fully accepts the arguments that have always been supported by Codacons, and paves the way for an avalanche of reimbursement actions by those who have incurred illegitimate costs for the early repayment of a loan”.
This was stated by Codacons, commenting on the ruling of the Consulta according to which the consumer is always entitled to a reduction in the total cost of the credit if he repays the loan in advance.
«In terms of loans, citizens who take out a loan often find themselves in a jungle made up of unclear clauses and conditions that only benefit the credit institution and financial companies, especially in cases of early repayment – explains the president Carlo Rienzi – In this sense, the decision of the Constitutional Court accepts our thesis according to which whoever repays a loan in advance has the right to a reduction of all the costs associated with that loan, proportional to the shorter duration of the contract”.
Not only. For Codacons, the ruling of the Consulta now paves the way for an avalanche of repayment actions by all those citizens who have incurred illegitimate costs linked to the early repayment of loans, citizens who will be able to ask banks and financial companies to repay the higher amounts get paid. In this direction, the association is studying possible legal initiatives to be undertaken to protect users.