Judgment_paragraph 94 · UK and Others v Volkswagen Bank GmbH and Others (C-33/20)

94Concerning the obligation laid down in Article 10(2)(l) of Directive 2008/48 to include in the credit agreement in a clear and concise manner the arrangements for adjusting the rate of late-payment interest where, as in the main proceedings, the parties to the credit agreement concerned have agreed that the rate of late-payment interest is to change in step with a change in the base rate set by the central bank of a Member State and published in its easy-to-access official journal, a reference in that agreement to that base rate is such as to enable an average consumer who is reasonably observant and circumspect to ascertain and understand the arrangements for varying the rate of late-payment interest, provided that the method of calculating the rate of late-payment interest is set out in the credit agreement. In that regard, two conditions must be met. First, that method of calculation must be set out in a way which is readily understood by an average consumer who does not have specialist knowledge in the financial field and which enables him or her to calculate the rate of late-payment interest based on the information provided in the credit agreement. Secondly, the frequency with which the base rate may be varied, which is determined by national provisions, must also be set out in that agreement (see, by analogy, judgment of 3 March 2020, Gómez del Moral Guasch, C‑125/18, EU:C:2020:138, paragraph 53).