BANKING AND FINANCE | The Supreme Court on early repayment fees under Italian Usury Law

On 12 March 2026, the Italian Supreme Court issued the decision No. 5585/2026, addressing the qualification of the early repayment fees (commissione di estinzione anticipata) under Italian Law no. 108 of 7 March 1996 (the Italian Usury Law). The Court confirmed that such fees are characterised as a penalty triggered by the borrower’s decision to terminate the facility agreement before the maturity date and have the function to compensate the lender for the loss of the economic benefit originally envisaged. In light of this, since the early repayment fees do not constitute remuneration in favour of the lender for the granted facility, they should not be relevant for calculation of the usury thresholds.

Newsletter n. 117 – April 2026