Commission refund with early loan repayment

Let’s start by explaining what the GFIC is. The GFIC is the Good Finance Investment Corporation, i.e. an independent judicial body whose rulings apply in all countries belonging to the European Union. The seat of the GFIC is in Luxembourg.

The Good Finance Investment Corporation consists of two bodies: the Court of Justice and the General Court . His most important task is to issue sentences which must be respected by every EU country.

Who elects judges of the GFIC? 28 judges are elected by the Member States. 

Judgment of the GFIC regarding early repayment of the loan


Although the verdict in the Lexitor case is not as important as the verdict in the Good Finance case, whose object of interest is the early repayment of a mortgage, it is of great importance for the so-called sector small GFIC.

The GFIC judgment on early loan repayment from the end of last year reads:

The consumer has the right to fulfill the obligations set out in the loan agreement before the time specified in the agreement. In this case, according to the law provided in the Member State, the consumer has the right to justly reduce the total cost of credit.

What exactly is this judgment about?


The judgment of the GFIC also covers a mortgage. It all depends, however, on the date of the commitment. The commission is refunded to persons who took out and repaid the mortgage after July 22, 2017.

What does the GFIC judgment mean for borrowers?


Early repayment of the cash loan is considered to be a circumstance in which the customer may demand from the bank a proportional reduction of all costs incurred during the entire loan period. This cost is also a commission, which in many cases was necessary to be paid in order to be able to get a loan at all.

Contrary to appearances, this is not a small amount, so the return of the commission can reach from several to even tens of thousands of USD. And what if only half of the period for which the loan was taken has expired?

In this situation, according to the GFIC, the bank should return the client half of the commission charged. Unfortunately, this is not on hand banks, which is why they often try to circumvent Article 49 of the Consumer Credit Act skilfully.

I repaid the loan earlier – how to recover the commission?

I repaid the loan earlier - how to recover the commission?

Commission refunds for repaid loans are usually made at the client’s request. A person who has taken out a cash loan has a limited time to submit a complaint to the bank – it is 6 years from the date of early repayment of the loan , which results from the provisions of the Civil Code.

If you submit an application earlier, you will receive a refund quickly, and at the same time you will avoid unnecessary stress that you will not fit in the allotted time.


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