§ 2-10. Loss and gain on early repayment of fixed-rate loans

This section applies to fixed-rate loans, that is, credit where the interest rate is fixed for all or part of the term. If the debtor repays early, the creditor can demand that its loss is covered if the agreement says so. The cap is that the debtor is not liable for more than the interest that would otherwise have accrued up to the due date.

There are three exceptions where the creditor cannot demand compensation for loss. The first is when the amount owed is NOK 50,000 or less. The second is when the debtor has not been informed of the creditor's right to compensation for loss, see § 3-25 letter g. The third applies when the debtor has given notice of early payment before the acceptance deadline for a change to the credit terms runs out, and pays no later than four weeks after the deadline. After the acceptance deadline, the debtor shall pay market interest (interest at market rate) for the credit used.

The second paragraph gives a counter-rule. If the creditor can demand that its loss is covered, the debtor shall to the same extent be credited with any gain the creditor makes from the early payment. This right can be excluded by agreement, even when the debtor is a consumer, but the consumer must have been told about it before the agreement was entered into. The third paragraph lets the Government issue regulations on how loss and gain are calculated. Example: a consumer with a fixed-rate loan repays early. If compensation for loss is in the agreement and no exception applies, the creditor can demand that its loss is covered, but never more than the interest that would otherwise have been paid. If the creditor gains from the early payment, the gain shall benefit the consumer, unless this has been excluded by agreement.

§ 3-25 is a list of information that must be given about the conclusion of the agreement. Letter g concerns the right to end the agreement early and the costs of doing so, with a reference to § 2-10. This section builds on § 2-9, which says that interest, fees and credit costs (kredittkostnader) are to be paid up to and including the day of payment, but see § 2-10. It is also referred to from § 5-13 on the customer's (kunde) notice of termination (oppsigelse), § 5-9 on the duty to provide information during the credit relationship, and § 5-5 on breach of the duty to carry out a credit assessment (kredittvurdering) or the duty to refuse credit (avslagsplikt).