On 11 September 2019, the Court of Justice (First Chamber)
delivered its opinion in the Polish case Lexitor sp. z o.o.
(C-383/18) interpreting Article 16(1) of EU Directive 2008/48/EC of
the European Parliament and of the Council of 23 April 2008 on
credit agreements for consumers following the opinion of Advocate
General Hogan which was delivered on 23 May 2019.
Article 16 provides that in the event of an early repayment of
credit in accordance with a credit agreement, the creditor shall be
entitled to fair and objectively justified compensation for
possible costs directly linked to early repayment of credit,
provided that the early repayment falls within a period for which
the borrowing rate is fixed.
