The Lexitor decision of the ECJ, dealing with the interpretation of the Directive on Consumer Credit Agreements (2008/48/EC), requires the Austrian legislator to amend the Consumer Credit Act (VKrG) and the Consumer Mortgage Act (HIKrG).
According to a view taken by the ECJ, consumers are to be proportionately reimbursed for all costs in connection with a loan, if such loan is repaid prematurely. The current legal framework in Austria only required the reimbursement of costs, which are depending on the term of a loan. In our current Client Alert we have briefly summarized the key facts of the proposed amendment and have indicated potential impacts to the Austrian credit industry.
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