Loan processing fees are not permitted
Many banks charge a processing fee of between one and three percent of the loan amount when issuing consumer loans. So far, this was justified by the effort for advice and checking the creditworthiness. With its judgment of May 13, 2014, the Federal Court of Justice ruled that such fees are not permitted.
According to the judges, the credit institutions are obliged to record customer requests and credit checks in their own interest. An administration fee would be unduly penalized for borrowers. The elimination of the processing fee makes many loans even cheaper. A credit comparison provides more precise information on this.
Claim processing fees from the bank
But not only future borrowers can save. It is estimated that between 2005 and 2013 the banks calculated around 13 billion USD in illegal processing fees. However, banks and savings banks will hardly reimburse them on their own. Consumers must therefore take action themselves and reclaim the processing fees.
If the bank refuses, consumer advocates advise to consult a lawyer or to sue the fees. The judgment of the BGH only applies formally to the respective plaintiffs, but the requirements are also observed by other courts. This means that the fees can be returned even if the loan has already been repaid in full.
Older credit rights
The three-year limitation period applies to the right to repayment. This begins at the end of the year in which the consumer has become aware of his claim. It follows that the claims from contracts from 01.01.2011 are in no case barred. Under certain circumstances, claims can also be made from long-standing credit contracts. In order to assess this, however, a close examination of the respective contract is required.
Always compare loans
Even after the processing fees cease to exist, it is important to compare the loan offers exactly. Some banks are inventive and are now trying to incorporate new fees into the APR. With the free loan comparison you can always find the cheapest offer.