Early Repayment Charges on German Savings Bank Mortgages: What You Need to Know
Sparkasse Doesn't Require Upfront Payment - Clause in Contract May Be Insufficient
The Bundesgerichtshof (Federal Court of Justice) has made some groundbreaking decisions about the legality and calculation of early repayment charges imposed by German savings banks (Sparkassen) on mortgage loans. These decisions could benefit those who sold their properties in the past six years.
The Ruling's Impact
If customers paid an early repayment charge while selling properties financed by savings banks between 2016 and 2020, they might be eligible for reimbursement. The eligibility depends on the terms of the contract, if the penalty was unlawfully calculated, and whether the legal deadlines for claims haven't passed.
What's the Catch?
A series of high court decisions, including those against Commerzbank and some cooperative banks, have set precedents that might favor those who took out mortgages from savings banks, Volks- and Raiffeisenbanks, Sparda-banks, PSD-banks, or Commerzbank between 2016 and 2020.
Steps to Take
If you think you might be eligible, here's what to do:
- Check your loan agreement and early repayment charges.
- Seek the help of a specialized lawyer or consumer protection organization, such as the Interessengemeinschaft Widerruf, to review your case. They can confirm if you're entitled to claim your money back.
- Don't delay, as statutory limitation periods for claims usually apply. In most cases, you have three years from the end of the year you made the payment.
Stay Informed
By staying aware of the legal landscape regarding early repayment charges, you're better equipped to protect your financial interests and save money. Don't miss out on potential opportunities to reclaim funds you may have overpaid.
[SOURCE] ntv.de [CATEGORIES] Banks, Mortgage financing, Judgments, Properties, Mortgage loans, Savings banks, Building finance, Legal issues, Cooperative banks
- Understanding the community policy and employment policy of these financial institutions, such as savings banks (Sparkassen), Volks- and Raiffeisenbanks, Sparda-banks, PSD-banks, or Commerzbank, could provide insight into their practices related to early repayment charges on mortgage loans.
- Effective personal-finance management might involve reviewing one's loan agreement and early repayment charges, seeking the advice of a specialized lawyer or consumer protection organization, and ensuring claims are filed within the statutory limitation period to reclaim any overpaid funds.
