Consult, the consumer is always entitled to a credit cost reduction, if he returns early

In the event of early repayment of the loan, the consumer’s right to the reduction of costs incurred in relation to the credit agreement cannot be limited to certain types of costsdepending on when the contract was concluded. That’s what we read in sentence number 263 filed today (editor by judge Emanuela Navarretta), with which the Constitutional Court declared the unconstitutionality of article 11-octies, paragraph 2, of decree-law n. 73 of 2021 (converted, with amendments, by law 23 July 2021, n. 106), in the part in which it limited the right to the reduction due to the consumer to certain types of costs. The rule concerned contracts concluded after the entry into force of the implementing regulation of directive 2008/48/EC (legislative decree 13 August 2010, n. 141), but before the entry into force of the aforementioned law n. 106 of 2021.

In this limitation, the Constitutional Court recognized a violation of the obligations deriving from Italy’s membership of the European Union and, in particular, of art. 16, paragraph 1, of directive 2008/48/EC, as interpreted by the Court of Justice with the judgment of 11 September 2019, C-383/18, Lexitor case. In the quoted ruling, the Court of Justice has clarified that the right to a reduction must refer to all costs incurred by the consumer, and that the reduction must operate in proportion to the shorter duration of the contract, consequent to the early repayment. As a result of the sentence of the Constitutional Court, consumers will therefore have the right to a proportional reduction of all costs incurred in relation to the credit agreement, even if they concluded their agreements before the entry into force of law n. 106 of 2021.