Savvy Homeowners: Get Your Early Repayment Charges Back from Banks!
Contract Requires No Upfront Payment for Sparkasse - Clause Regarding Payment Insufficiently Stated
Want to know if you can reclaim those annoying early repayment charges from your bank? If you financed a property with a savings bank (like Volks- and Raiffeisenbanks, Sparda- or PSD-banks) or Commerzbank since 2016, you might be in luck!
Some banks have been slacking when it comes to informing their customers about the calculation of early repayment fees. The Federal Court of Justice (Bundesgerichtshof) has declared a common clause in many credit agreements insufficient, meaning these banks are out of luck when it comes to claiming the early repayment charge.
So, if you sold your property and had to pay an early repayment charge, there's a good chance you could get that money back! This applies particularly if you settled your loan after 2021, as in this case the claim is not time-barred. In earlier cases, an individual examination will be necessary. This decision by the Federal Court of Justice has put banks in their place when it comes to the premature termination of mortgage loans.
Interested? If you've paid an early repayment charge on a mortgage from these banks since 2016, you should have the matter checked by an expert, ideally at the Interest Group Refund, free of charge and without obligation.
From a broader perspective, German banking and consumer protection laws strive to prevent unfair contract terms. Early repayment charges (Vorfälligkeitsentschädigung) are common in German mortgage contracts, serving as compensation for banks when borrowers pay off their loan early. However, contracts containing unclear or unfair early repayment fee clauses have been deemed invalid by courts.
Similarly, Volks- and Raiffeisenbanks, Sparda-banks, PSD-banks, and Commerzbank are subject to these regulations. Since 2016, if a borrower believes that the early repayment charge clause lacked sufficient clarity or was unfairly applied, they may have grounds for a refund claim. The success of these claims depends heavily on the contract details, the communication provided by the bank at the time of contract signing, and recent court decisions, including those from the Federal Court of Justice.
Remember, no explicit recent legal updates or regulatory guidance on refunds of such early repayment charges were found, so consulting a specialist lawyer or consumer advisory service experienced in banking law is recommended to assess the merits of a refund claim. Happy refund hunting!
- Despite the common practice of charging early repayment fees in German mortgage contracts, banks like Volks- und Raiffeisenbanks, Sparda-banks, PSD-banks, and Commerzbank may have to refund these charges if their employment or community policy did not clearly specify the calculation of these fees and if the borrower believes the fee was unfairly applied since 2016.
- In the realm of personal-finance and business, it's crucial for homeowners to be aware that if they paid early repayment charges on a mortgage from the mentioned banks since 2016, they could potentially reclaim this money if their contract lacked sufficient clarity or if the fee was unfairly applied, especially after 2021 when the claim is not time-barred.
