Spare Bank Early Repayment Charge Refund: Federal Court Strikes Down Bank Clause!
Sparkasse Doesn't Require Upfront Payment - Contractual Term May Fall Short
Breaking news! The Federal Court of Justice has knocked down a common contract clause in real estate loans from savings banks. This ruling means that if you sold a property with a running interest rate tie financed by a savings bank, you might be eligible for a refund of your early repayment charge!
Early Repayment Charge: Not Looking So Profitable Now
When you close a deal on a property with a savings bank's interest rate tie, you often get slapped with an early repayment charge—intended to offset the bank's inability to reinvest the prematurely repaid money as profitably. But many banks fumble when it comes to informing you about the calculation of this fee.
In a recent ruling (Az.: XI ZR 22/24), the Federal Court of Justice determined the contract clause used by a savings bank to be inadequate in informing consumers about early repayment charge calculations. This leaves the bank empty-handed with their claim for this fee, and they must return your hard-earned 7,600 euros!
Gearing up for a Boost in Refunds
What's crucial about this decision is that most German savings banks share the same templates for their construction financing agreements, and the text approved by the Federal Court of Justice appears in numerous agreements. If you've financed a property with a savings bank between 2016 and 2020 and paid an early repayment charge whenever you sold the property, you're less likely to grin and bear it. You now may have a good shot at getting your money back! Keep in mind that if your loan was terminated after 2021, the payback period may still apply. In earlier cases, you should examine the individual circumstances carefully.
Bank Clawbacks Apply to More Than Just Savings Banks
This ruling doesn't only affect savings banks. Previously, there have been high court decisions against Commerzbank and a bank from the cooperative association. This means that if you've taken out a real estate loan with a savings bank, Volks- and Raiffeisenbank, Sparda- or PSD-bank, as well as with Commerzbank, since 2016, you might stand a chance to reclaim your early repayment charge.
Not Done Yet: More Consumers to Benefit?
If you believe this decision might apply to your case, it's wise to have an expert examination done at no cost or obligation, such as at the Interessengemeinschaft Widerruf.
About the Author
Roland Klaus is the founder of the Interessengemeinschaft Widerruf. This group helps consumers enforce their rights in financial matters, and it's backed by specialized lawyers.
(Originally published on Wednesday, June 18, 2025.)
Source: ntv.de
Tags: Bank, Mortgage Lending, Judgments, Real Estate, Real Estate Loans, Savings Banks, Building Loan, Legal Questions, Cooperative Banks
- In light of the Federal Court's ruling, it's essential for community policy and personal-finance education to emphasize the importance of understanding early repayment charges in employment policy regarding real estate loans, particularly when dealing with savings banks, Volks- and Raiffeisenbanks, Sparda- or PSD-banks, and even commercial banks like Commerzbank.
- As businesses such as savings banks re-evaluate their employment policies in response to the Federal Court's decision, it's crucial for finance departments to ensure transparency in calculating early repayment charges, adhering to the standards set by the court to maintain consumer trust and avoid potential refunds.
