FedUp with Savings Banks and Early Repayment Fees? The Federal Court of Justice Might be on Your Side!
Sparkasse Doesn't Require Upfront Payments - Clauses in Contracts May Be Insufficient
In a breath of fresh air for homeowners, the Federal Court of Justice has given a definitive kick to savings banks, citing that their contract clauses regarding early repayment charges on real estate loans are insufficient. You guessed it, if you sold a property financed by a savings bank and paid an early repayment fee, it's likely you have a chance of getting it back!
So what's the deal with these fees? Banks require them when you sell a property with an ongoing interest-rate tied mortgage. They argue that this fee compensates them for the potential loss of profit when they can't reinvest the prematurely repaid money as advantageously as the terminated construction financing. However, the banks' failure to meet the legislature's requirements in informing customers about the calculation of the early repayment fee makes the fee void. A customer whose case was decided by the court was lucky enough to get a refund of 7,600 euros.
The significance of this ruling goes beyond that single case as many German savings banks utilize identical financing agreement templates. If you financed a property with a savings bank between 2016 and 2020 and paid an early repayment fee upon its sale, you can look forward to a potential refund. Note that loans settled after 2021 are not subject to the statute of limitations, so claim your money back!
The wave of consumer victory doesn't stop there; the ruling applies to other banks as well, like Volksbanks, Commerzbank, Sparda- or PSD-banks. In other words, if you took out a real-estate loan with any of these banks post-2016, sold the financed property prior to the end of the interest rate tie, and paid the early repayment fee, there's a great chance you can reclaim it.
Before getting your hopes too high and gloating to your friends, make sure to have an expert evaluate your situation. A free, no-obligation check can be carried out, for example, at the Interessengemeinschaft Widerruf.
Now, let's make something clear, the ruling that's causing such a stir hasn't been released in 2025. Your bank isn't breaking the law, but if you fall under the criteria mentioned above, they'll be settling a debt with you instead.
So, don’t just sit back and let the banks take advantage of you when selling your property. Kick back, take your rightful refund, and give that savings bank a taste of their own medicine!
(Note: The author, Roland Klaus, is the founder of the Interessengemeinschaft Widerruf. It assists consumers in enforcing their rights in financial matters and is supported by specialized lawyers.)
Sources: ntv.de
Tags: Banks, Mortgage lending, Judgments, Real estate, Real estate loans, Savings banks, Building finance, Legal questions, Cooperative banks, Refunds.
- If you financed a property with a savings bank, Volksbank, Commerzbank, Sparda-bank, or PSD-bank between 2016 and 2020, sold the financed property prior to the end of the interest rate tie, and paid an early repayment fee, consider seeking expert advice to determine whether you can reclaim that fee.
- The recent ruling by the Federal Court of Justice indicates that if you fell under the mentioned criteria, your bank might be obligated to settle a debt with you, not contravene the law but essentially refund the early repayment fee paid upon the sale of your property.
