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CJEU Ruling Clarifies Borrowing Rate Must Exclude Credit Costs—what EU Lenders Need To Do Now
The Court of Justice of the European Union has issued a landmark ruling that fundamentally changes how consumer credit providers must calculate borrowing rates across all EU Member States. The judgment establishes that interest may only be applied to the actual credit amount made available to consumers, not to financed costs such as insurance premiums that form part of the total cost of credit. This binding decision has immediate implications for credit institutions, consumer lenders, and firms providing mo
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