Sparkasse's Contracts Don't Demand Advance Payment Sufficiently
Taking Back Your Money: Savings Banks Must Refund Early Repayment Charges - Courts Got the Banks Covered
Good news for homeowners! The Federal Court of Justice has called out savings banks for theirApplication of early repayment charges on mortgage loans. This ruling means that if you've sold a property financed by savings banks such as Volks- and Raiffeisenbanks, Sparda- or PSD-banks, or Commerzbank since 2016 and paid an early repayment charge, you might get a refund.
Let's break it down - when homeowners sell a property with a running interest rate tie, they often have to pay an early repayment charge to the bank. This is to make up for the fact that the bank can't reinvest that money as profitably as it was before the mortgage ended.
But here's the catch - for banks to claim this charge, they have to inform the customer properly about the calculation of the early repayment fee, and many banks have been falling short on this front. The Federal Court of Justice has decided that the clause used in the credit agreement of a savings bank doesn't adequately inform the customer about the calculation of the early repayment charge, which means the bank loses its claim to the paid fee. That means a customer got back a whopping 7,600 euros!
This decision is important because most German savings banks use similar templates for their mortgage financing, and the text approved by the court can be found in numerous credit agreements, mainly between 2016 and 2020. If you fall into this time frame and your loan was settled after 2021, you have a good chance of getting your early repayment charge refunded, as in this case the payment cannot be statute-barred. For earlier cases, the situation will have to be evaluated individually.
This is not the first time the Federal Court of Justice has stood up for consumers against banks, especially in the premature termination of mortgage loans. In fact, similar rulings have already been made against the Commerzbank and a bank from the cooperative association.
Don't miss out on your chance to get your money back! If you think this applies to you, get a professional check. A free, no-obligation check is available at the Interessengemeinschaft Widerruf. Keep in mind that search results currently don't contain direct information about this decision specifically, so make sure you consult updated sources on German banking jurisprudence to secure accurate information.
- The community policy of German savings banks, including Volks- and Raiffeisenbanks, Sparda- or PSD-banks, and Commerzbank, may need revision regarding the application of early repayment charges on mortgage loans, following the Federal Court of Justice's ruling that some banks have not properly informed customers about the calculation of such fees.
- In the realm of German business and finance, this case highlights the importance of clear employment policies, especially those related to consumer agreements, to avoid potential disputes and ensure customer satisfaction.
