The Austrian Supreme Court (OGH) has ruled in several proceedings against banks that loan processing fees and handling charges are inadmissible in many cases. Anyone who has paid such fees may be able to reclaim them. This guide shows how that works.
Requirements for a reclaim
- The loan agreement was concluded as a private individual with a bank.
- It is a mortgage loan, consumer loan or property loan.
- The loan can still be outstanding or already repaid.
- Depending on the circumstances of the case, the conclusion of the contract can date back up to 30 years.
Step 1: Check the loan agreement
Check your loan agreement for processing fees. They can be labelled in different ways, for example as a processing commission, loan fee, processing charge or bank charges. These fees were often calculated as a percentage of the loan amount and frequently ranged between 0.5 and 4 percent.
Step 2: Calculate the reclaim transparently
An example for a property loan from the year 2005: with a loan amount of 700,000 euros and a processing fee of 3 percent, the reclaim amounts to 21,000 euros. Of this, 65 percent, that is 13,650 euros, is paid out to you. The success fee of R. M. Prozessfinanzierung GmbH is from 35 percent, that is 7,350 euros. In addition, there is statutory interest, the amount of which depends on the year of the contract.
Step 3: Clarify the cost risk
Where legal expenses insurance covers the case, that cover is used first. Where there is no cover, R. M. Prozessfinanzierung GmbH, as the litigation funder, bears the cost risk of the proceedings. You make no upfront payment for lawyers.
Step 4: Start the free assessment
Get in touch free of charge and without obligation to have your loan agreement assessed. Cooperating lawyers conduct the proceedings. R. M. Prozessfinanzierung GmbH is a litigation funder and not a law firm.
Why these fees can be inadmissible
The clauses are often non-transparent. Alongside the processing fee, banks charge further fees that are typically already covered by taking out the loan, and in doing so charge for services twice. This is another reason why the fees can be reclaimed.
More on this on the page Reclaiming loan fees.