The High Court of Cassation and Justice ruled that banks cannot charge interest for the remaining loan period after declaring the loan immediately due.

The High Court of Cassation and Justice ruled, through Decision No. 123 of October 26, 2026, that banks may not calculate interest for the entire remaining period of a loan declared immediately due. The consumer owes only the interest due up to the time the loan was declared immediately due.

The ruling was issued by the Panel for the Resolution of Legal Questions, following a referral submitted by the Timiș Tribunal – Second Civil Section. The supreme court interpreted the phrase “due debt” in Article 38 paragraph (7) of Government Emergency Ordinance No. 50/2010 on consumer credit agreements.

According to the High Court of Cassation and Justice, this concept does not include the remunerative interest relating to the period between the declaration of immediate maturity and the end of the contract. After the loan is declared immediately due, the consumer no longer benefits from the original repayment term, meaning that including all future costs in the debt would run counter to the purpose of the law and consumer protection.

The ruling will be published in the Official Gazette after the grounds have been drafted and signed.