The trigger case: Opaque clauses in the loan agreement
At the heart of the Supreme Court’s ruling was a clause in WSK Bank’s terms and conditions that provided for an administrative fee of 4 % as well as additional charges such as collection fees, transfer fees, and printing and postage costs. These amounts were charged to the loan account or deducted from the disbursement amount.
The Supreme Court clarified that such bundled fee structuring is not transparent. The bank charges multiple times for services that are part of its duties in granting a loan anyway. From the court's perspective, such a regulation unfairly disadvantages borrowers.
What does this mean for consumers?
Many loan agreements contain comparable wording or clauses. Particularly affected are contracts in which flat-rate processing fees were charged, for example in the form of a percentage of the loan amount or a flat fee for loan processing and contract conclusion.
Consumers now have the opportunity to have these fees reviewed. If clauses are invalid, previously paid amounts can be reclaimed—even for loans that have already been paid off. This is because the claims—which typically amount to several thousand euros—only become time-barred 30 years after payment and accrue annual interest of four percent.
What should borrowers pay attention to?
Check your loan agreement in particular for the following terms:
- „Processing fee or handling fee“
- „Contract conclusion fee or loan fees“
- One-time fees for collection, disbursement, or administration
- Printing and postage costs
- Valuation fee
- Fee for land register application and land register extract
Such clauses can be unlawful if they are not clearly understandable or if a double charge is made for the same service.
Conclusion: Verification is worthwhile
The Supreme Court ruling brings clarity and strengthens the rights of borrowers. Anyone who has taken out a loan agreement in recent years should now carefully review it (or have it reviewed). We offer a free and non-binding review for you.
For further information and an initial assessment, Anela Blöch and Roman Taudes at any time under office@atb.law or by phone at 01 39 12345 available.
