Can I recover the commission if I repay a loan early?
Yes: on early repayment you're owed a proportional refund of costs. Under art. 49 of the Consumer Credit Act (and similarly for a mortgage), if you repay a loan early, you're entitled to a proportional refund of costs — including the commission and other fees — for the period by which the contract was shortened. This covers contracts concluded after 22 July 2017. The refund should be automatic, but in practice you often have to request it. Separately, if the bank breached its information duties when concluding a consumer contract, you can use the free-credit sanction (art. 45) and repay only the principal, with no interest or fees. From 20 November 2026 a new act (implementing the CCD II directive) is to enter into force, changing some rules.
📋 The rules
- On early repayment: proportional refund of costs (art. 49)
- Covers the commission and fees for the shortened period
- Applies to contracts concluded after 22 July 2017
- Refund as a rule automatic — often must be requested
- Bank's breach of duties: possible free-credit sanction
🔓 Exceptions
- Free-credit sanction (art. 45): repay only principal, no interest or fees
- Mortgage: free early repayment as a rule after 36 months
- New Consumer Credit Act (CCD II): changes from 20 November 2026
⚠️ Penalties & fines
If the bank doesn't refund the proportional part of costs after early repayment, you can file a complaint, then use the Financial Ombudsman or take the case to court — case law (including the CJEU) confirms the consumer's right to a refund. For a mortgage, the bank can charge compensation for early repayment only under set conditions and a set period (as a rule the first 36 months). To recover the money: after early repayment request the bank to settle and refund the proportional commission and costs, keep the contract and proof of repayment, and on refusal use a complaint and consumer-protection bodies. Also check whether you're entitled to the free-credit sanction.
📎 Official sources
❓ Frequently asked
Will I recover the commission on early loan repayment?
Yes, in proportional part. Under art. 49 of the Consumer Credit Act, repaying a loan early entitles you to a reduction of the total cost by the costs falling on the period by which the contract was shortened — including the commission. This covers contracts concluded after 22 July 2017.
Must the bank refund the costs itself?
As a rule the refund should be automatic after early repayment, but in practice you often have to request it. It's worth filing a request with the bank to settle and refund the proportional commission and remaining costs, and on refusal — a complaint.
What is the free-credit sanction?
It's a consumer-protection mechanism under art. 45 of the Consumer Credit Act. If the bank breached its information duties when concluding the contract (e.g. misstated the costs), the borrower can repay only the principal — with no interest or extra fees. You must effectively invoke this sanction, though.
Can I recover the commission on a mortgage too?
Yes. The rule of proportional refund of costs on early repayment also applies to mortgages concluded after 22 July 2017. The bank can, however, charge compensation for early repayment only under set conditions and, as a rule, in the first 36 months.
What changes in 2026?
From 20 November 2026 a new Consumer Credit Act implementing the EU CCD II directive is to apply. The changes include removing the current cap on the consumer-loan amount and introducing a graduated free-credit sanction for smaller breaches.
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