S.L. 376.10 Art. 29Early repayment.

(1) The consumer shall be at any time entitled to early repayment, and in such cases, the consumer shall be entitled to a reduction in the total cost of the credit to the consumer for the remaining duration of the contract:

Provided that when calculating such reduction, all the costs imposed on the consumer by the creditor shall be taken into consideration.

(2) In the event of early repayment, the creditor shall be entitled to fair and objectively justified compensation for possible costs directly linked to such early repayment, provided that the early repayment falls within a period of time for which the borrowing rate is fixed:

Provided that the compensation referred to in sub-regulation (1) shall not exceed one percent (1%) of the amount of credit subject to early repayment where the period of time between the early repayment and the agreed date of termination of the credit agreement exceeds one (1) year. Where that period does not exceed one (1) year, the compensation shall not exceed zero point five percent (0.5%) of the amount of credit subject to early repayment.

(3) Notwithstanding sub-regulation (2), the creditor:

(a) shall only be entitled to the compensation referred to in sub-regulation (2) on the condition that the amount of the early repayment exceeds ten thousand euro (€10,000) within any period of twelve (12) months; and

(b) may exceptionally claim higher compensation if the creditor can prove that the loss suffered due to early repayment exceeds the amount determined in accordance with sub-regulation (2):

Provided that where the compensation claimed by the creditor exceeds the loss actually suffered due to the early repayment, the consumer shall be entitled to a corresponding action and in such case, the loss shall consist of the difference between the initially agreed borrowing rate and the interest rate at which the creditor may lend out the amount subject to early repayment on the market at the time of such repayment and shall take into account the impact of the early repayment on the administrative costs.

(4) The compensation amounts referred to in sub-regulations

(2) and (3)(b) shall not in any case exceed the amount of interest that the consumer would have paid during the period of time between the early repayment and the agreed date of termination of the credit agreement.

(5) The creditor shall not be entitled to the compensation referred to in sub-regulation (2) where one of the following conditions is fulfilled:

(a) the repayment has been made under an insurance contract intended to provide a credit repayment guarantee;

(b) the credit is granted in the form of an overdraft facility; or

(c) the repayment falls within a period for which the borrowing rate is not fixed.