(1) A consumer has a right to discharge fully or partially his or her obligations under a credit agreement prior to the expiry of that agreement. In such cases, the consumer shall be entitled to a reduction in the total cost of the credit to the consumer, such reduction consisting of the interest and the costs for the remaining duration of the contract.
(2) A creditor shall be entitled to fair and objective compensation, where justified, for possible costs directly linked to the early repayment, but shall not impose a sanction on the consumer, and any such compensation shall not exceed the financial loss of the creditor.
(3) Notwithstanding paragraph (2) and without prejudice to paragraph (4), a creditor's entitlement to compensation under this Regulation shall arise only in the circumstances where the borrowing rate provided for in the credit agreement: -
(a) may not be changed, or
(b) may not be changed over a period of at least one year, or
(c) may not, for a period of at least five
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