The European Court Ruled on the Payment of Interest for Late Payments in Health Services

The Court of Justice of the European Union (ECJ) ruled by judgment on whether or not to pay default interest on health care bills, which resulted in a litigation between the Murciano Health Service ( SMS) and IOS Finance, a company specialising in public sector invoices.

The Court concludes in the judgment that that directive, and in particular Article 7 (2) and (3) thereof, must be interpreted as meaning that it does not preclude a national rule such as that at issue in the main proceedings, which allows the creditor to waive the interest for late payment and compensation for the collection costs in return for the immediate payment of the principal of accrued credits, provided that this waiver is freely agreed, which is a matter for the national judge to verify.

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Published on 20. February 2017 in News EU, News Spain