Feds Don't Allow Early Repayment Charges for Savings Banks - Sloppy Contract Clauses
Sparkasse Doesn't Require Payment Upfront - Clause in Contract Is Inadequate
Have you ever sold a property with a mortgage from a savings bank, Volks- or Raiffeisenbank, Sparda-, PSD-bank, or even Commerzbank? You might be in luck! The Federal Court of Justice (FCJ) has declared a common contract clause in mortgage loans from savings banks unacceptable, stating that the clause does not properly inform customers about the calculation of the early repayment fee. The outcome? If you've paid an early repayment charge, you could get it back!
When you sell a property with a mortgage that has a running interest rate tie, the bank may demand an early repayment charge. This amount, intended to compensate the bank if they cannot profitably reinvest the money you repaid before the loan term ended, can be a significant sum. However, the FCJ has now indicated that the clause used in the loan agreement of a savings bank doesn't provide enough information about the early repayment fee calculation. As a result, the bank may lose the right to the paid charge, and the customer gets their money back. In this case, the reader stands to receive a whopping €7,600 refund!
Clause Seen in Numerous Loan Agreements
This ruling is notable, as many German savings banks use identical templates for their mortgage financing. By and large, you may find the approved Federal Court of Justice text in numerous loan agreements from 2016 to 2020. So, if you financed a property with a savings bank during this time and had to pay an early repayment charge when selling it, brace yourself for the possibility of getting your money back, especially if your loan was terminated after 2021! In such a scenario, the payment could not have expired. For cases before 2021, further investigation may be necessary to determine your eligibility for a refund. With this decision, the FCJ once again sets limits for banks in early mortgage loan terminations.
Banks under Scrutiny
It's not just savings banks under the microscope. In the past, there have been high court decisions against the Commerzbank and a bank from the cooperative association. As a result, if you took out a mortgage loan with any of the banks listed earlier since 2016 and sell the financed property before the end of the interest rate tie, you might be able to reclaim a paid early repayment charge!
Expert Advice Encouraged
Affected consumers should have their case reviewed by an expert. For example, the Interessengemeinschaft Widerruf provides free, no-obligation consultations regarding consumer rights in financial matters.
(Originally published on Wednesday, June 18, 2025.)
Relevant Topics:
- Banks
- Mortgage financing
- Judgments
- Real estate
- Mortgage loans
- Savings banks
- Building finance
- Legal questions
- Cooperative banks
- Commerzbank
If you financed a property with a savings bank, Commerzbank, or any cooperative bank since 2016 and had to pay an early repayment charge, you might be entitled to a refund due to the Federal Court of Justice's ruling on sloppy contract clauses in mortgage loans. Seeking expert advice, such as from the Interessengemeinschaft Widerruf, is encouraged for consumers affected by this case.
In addition, the judgment against Commerzbank and a bank from the cooperative association indicates that banks are under scrutiny, and if you sold a financed property before the end of the interest rate tie, you could potentially reclaim the early repayment charge.
