Major ruling from the High Court of Cassation and Justice: Banks can no longer charge interest for the remaining term if they declare the loan due early

Decision No. 123 of October 26, 2026, was issued by the Panel for the Resolution of Legal Issues of the High Court of Cassation and Justice, following a referral from the Timiș Tribunal—Second Civil Division.

With this decision, if the bank asks you to repay a loan early, it cannot calculate interest for the entire period remaining until the end of the contract. The consumer owes the interest due until the moment of declaring the early maturity.

According to the Supreme Court, the phrase „due debt”, provided for in Article 38, paragraph (7) of Government Emergency Ordinance No. 50/2010 on consumer credit contracts, does not include the remunerative interest related to the period between the declaration of early maturity and the end of the contractual period.

Increased protection for consumers

The High Court showed that this interpretation results both from the systematic analysis of the provisions of Article 38 of GEO No. 50/2010, and from the purpose of the regulatory act, namely ensuring an increased level of protection for consumers who have concluded credit agreements.

The court explained that including all costs related to the entire contractual period in the debt due would contravene the purpose of the law, given that, after declaring the early maturity, the consumer no longer benefits from the repayment term initially established by the contract.

Therefore, the remunerative interest calculated for the period following the declaration of early maturity does not fall into the category of debt due within the meaning of the legal provision analyzed by the High Court of Justice.

According to the High Court, the decision represents a benchmark for the uniform interpretation of the law and contributes to increasing predictability and legal security in relations between consumers and credit institutions.

After drafting the considerations and signing the decision, it will be published in Monitorul Oficial, Part I.