The „Free Credit” Sanction: We Won Our Case Against Cofidis – The Court Sided with the Consumer

We are proud to announce that our team achieved an important victory in a dispute with Cofidis S.A. concerning the „free credit” sanction. The court sided with our client, finding that the terms of the credit agreement failed to meet the transparency requirements imposed on financial institutions by European Union law.

Key argument: the CJEU ruling of 13 February 2025 (C-472/23)

In its reasoning, the court referred to the most recent ruling of the Court of Justice of the European Union (CJEU), which stressed that:

„A credit agreement should describe, in a clear and comprehensible manner, the conditions for changing the fees related to its performance.”

The CJEU made clear that if an agreement relies on external indicators that are difficult for an average consumer to verify, this may amount to a breach of the duty to inform. The consumer must have a genuine ability to check why and how fees may change in order to fully understand the scope of their financial obligation.

Cofidis failed to meet the requirements of Directive 2008/48/EC

The court clearly found that the Cofidis credit agreement did not specify the rules for changing fees, in breach of EU law — specifically Directive 2008/48/EC on consumer credit. Financial institutions are required to provide clear and unambiguous information about all fees and the mechanisms for changing them — with no gaps or ambiguity.

It was precisely this lack of transparency that decided our client’s win. The court found that the breach of the duty to inform triggers the „free credit” sanction — meaning a refund of interest and non-interest costs, providing real financial relief for the consumer.

What does this mean for other consumers?

This judgment is not just an individual success — it is an important precedent showing that it is worth fighting for your rights. Consumers should not be placed in a position where they do not understand how much they will actually pay for their credit. Financial institutions must act transparently, and any departure from this duty can lead to serious consequences.

Do you have consumer credit? Check whether your agreement contains irregularities

If you have credit with Cofidis or another financial institution and have doubts about the transparency of the contract terms — get in touch with us. We will review your situation and help you pursue your rights.