Cashing In On Early Repayment Charges: Federal Court Smacks Down Savings Banks
Sparkasse doesn't require upfront payment - Clause in contract deemed insufficient
Time to stick it to the banks! The Federal Court of Justice has dealt a crushing blow to savings banks across the nation, invalidating a common practice in mortgage loans. Sellers of properties financed with these loans can now expect to get their early repayment charges refunded.
When homeowners sell properties with a running interest rate tie-in, the bank may demand an early repayment charge to make up for the reduced profits on the prematurely repaid funds. However, the bank must properly inform the customer about the calculation of this charge, or they forfeit their claim to it.
In the recent case Az.: XI ZR 22/24, a savings bank's contract clause regarding early repayment charges was found to be insufficient. This means the bank loses its claim to the 7,600 euros early repayment charge it took from the seller.
A Widespread Issue
This ruling affects many German savings banks, as they often use the same template for mortgage financing, and the text approved by the Federal Court of Justice can be found in numerous credit agreements. Most notably, consumers who financed properties between 2016 and 2020 and paid early repayment charges stand a good chance of getting their money back—especially if the loan was terminated after 2021, as such payments cannot be made statute-barred in later cases.
Previous decisions against Commerzbank and another bank from the cooperative association also grant hope to consumers who took out mortgage loans with savings banks, Volks- and Raiffeisenbank, Sparda- or PSD-Bank, and Commerzbank.
If you believe you may be entitled to your early repayment charge, it's wise to consult an expert. The Interessengemeinschaft Widerruf offers free, no-obligation checks to help consumers enforce their rights in financial matters.
The Evolution of Legal Battlefields
On June 19, 2025, the Court of Justice of the European Union (CJEU) issued a judgment related to consumer protection and unfair terms in mortgage loan contracts. This ruling often addresses the legality of early repayment fees charged by banks when consumers early repay mortgage loans. Such fees have been challenged as unfair and potentially unlawful if they exceed the lenders' actual costs or are otherwise abusive. While the specific ruling details from the German Federal Court (Bundesgerichtshof, BGH) are not explicitly documented, the CJEU decision influences German courts to favor consumers needing to reclaim unjustified early repayment charges paid in the past.
In conclusion:
- European and federal court rulings provide a strong legal foundation for consumers to reclaim early repayment fees paid between 2016 and 2020 on mortgages from German savings banks, Volks- and Raiffeisenbanks, Sparda- and PSD-Banks, and Commerzbank.
- To exercise this right, affected consumers should consult legal advice as the exact applicability depends on individual contract terms and court decisions based on the CJEU precedent.
Get ready to stick it to the banks and reclaim your hard-earned cash!
- In light of recent decisions, community members who financed properties with German savings banks, Volks- and Raiffeisenbanks, Sparda- and PSD-Banks, or Commerzbank between 2016 and 2020 and paid early repayment charges may want to consider seeking advice from professionals, as they potentially have a strong case for reclaiming these fees.
- It is crucial for consumers to understand that the federal and European court rulings concerning early repayment fees primarily apply to personal-finance matters and have the potential to influence the business practices of mortgage lenders in the future, promoting fairness and transparency in employment and financial policies.
