Several decisions of the OGH give borrowers the option to reclaim processing fees they paid in excess. Anyone who has taken out a loan in recent decades should have the contract reviewed.
Why the percentage-based calculation is problematic
Many banks calculated the processing fee not as a fixed amount but as a percentage share of the loan amount, for example one to four percent. This is precisely what the OGH has assessed as inadmissible and non-transparent in many cases.
The reason is understandable. The actual effort of the bank for processing a loan application, namely the credit assessment and the preparation of the documents, is barely higher for a loan of 50,000 euros than for one of 500,000 euros. When the fee nonetheless depends directly on the size of the loan, it bears no relation to the service and disadvantages the customers.
Which loans can be affected
In principle, consumer loan contracts are affected, including:
- Mortgage and property loans
- Consumer loans, for example for a car or furnishings
- Charges for bridging finance and credit lines
A reclaim is also possible when the loan is still running or has already been fully repaid. Depending on the circumstances of the case, the claims can reach back up to 30 years.
How to proceed
Look for your loan contract and the corresponding account statements. Pay attention to terms such as processing charge, loan processing fee or collection charges, in particular when these were calculated as a percentage of the loan amount. These documents are sufficient for a first assessment.
The assessment is free of charge and without obligation. Where there is no coverage from a legal expenses insurance, R. M. Prozessfinanzierung GmbH as litigation funder bears the cost risk of the proceedings. You do not pay any upfront fee for lawyers. In the event of success, we retain from 35 percent of the amount won, and the remaining amount is paid out to you.
More on this on the page Reclaiming loan fees.