17.07.2026

European justice changes interpretation on credit costs

A recent ruling of the Court of Justice of the European Union on the Consumer Credit Directive has changed the interpretation of how financed credit-related costs, including certain insurance premiums, should be treated, with potentially significant implications for lenders across the EU.

A recent judgment of the Court of Justice of the European Union (Case C-744/24, Bank Polska Kasa Opieki) significantly changes how financed costs should be treated under the Consumer Credit Directive, departing from both established industry standards and supervisory expectations.

The Court held that amounts used to finance costs associated with the credit agreement itself, such as certain insurance premiums, cannot form part of the total amount of credit on which contractual borrowing interest is charged.

Eurofinas is analysing the implications with members and other European stakeholders and is engaging with the Commission on how the judgment applies across national markets.