When a client walks into the hallowed halls of a bank, the eyes often shimmer when they realize that the guest needs money. Installment loan or loan is called this loan in the jargon. And so that everything has its right, a contract is set up. It is recorded for how long the customer gets the money borrowed and until when it is payable back on which terms.
Of course, the financial institutions want to see their money again. But this happens too fast, they are not right, and so they often show their displeasure with excessive fees, which are to be found under the term due compensation. The bank can therefore compensate for the fact that the loaned money is unexpectedly ripped back into the coffers early on. Some will frown, because have you ever seen a worker who demands compensation from the employer if the salary is a few days earlier? After all, it could be argued that the salary would not be enough, because it now has to last for more days.
However, there are several reasons why a loan is repaid prematurely. And since this happening usually concerns the real estate financing, we hold with our examples also to this branch.
Several reasons why a loan is repaid prematurely
1. Building loans are usually in times of low interest actually always completed in a longer time. Such a term can be up to 30 years, which is rather unusual. But even 20 years are enough to illustrate the following example: A newly built property is financed with a 20-year loan. But what is in 20 or even 10 years, know neither the borrower, nor the bank. So it could happen that the formerly proud homeowner is moved to another angle and has to move to work. Now he would certainly like to sell the house where he still pays off. If he makes this suggestion to his bank, he appeals to a premature payday loan repayment.
The bank, surprised by the announcement of the early financial blessing, is now ruling that it will miss the interest for the last 10 years of its term and considers the issue with a laughing and a crying eye (from the client’s point of view) ) and with two laughing eyes (from the bank’s perspective). In order to be indemnified against the premature repatriation, she assumes that she will invest the money again. The difference between lost interest and expected income is deducted from the customer. Unfortunately, rather than relying on a pointed pencil, the bank often just aims it roughly over the thumb, in its own favor, as it assumes that it will invest the money for substantially less than it actually does, To determine the compensation for default, listed mortgage loa are to be accepted as the basis for calculation.
However, it is widespread that the Pfandbriefe of the “synthetic” PEX Index are used. Consumer advocates are therefore advised to: In any case, have the indemnity allowance recalculated because banks usually charge too much for the early repayment of a home loan. This emerges from an investigation of the consumer center Bremen. While a waiver may be required, greed is limited. This was decided in 2005 by the Federal Court of Justice. So, if you enjoy benefiting from a home loan early, then an expert should recalculate the indemnification. For example, for 50 to 100 euros, the consumer centers offer to look over the bank’s shoulder.
2. In order to have a dispute with the bank about provisional fees, it is not necessary for a loan concluded for a certain term to be repaid prematurely. Even contracts that provide a termination at any time, are not safe from the insatiable greed. This had to take into account a woman who had taken out a loan with a term of 15 years at her bank. After deducting the agreed discount, the bank had paid 97% of the loan amount, and then the loan was already repaid after 42 months.
Here, the woman now saw a chance to demand back too much paid discount. However, the bank was unreasonable against this demand and referred to a neatly hidden and small printed clause in the credit conditions, according to which a reimbursement from the outset was excluded (as a preliminary deduction of the discount made so well), Since no agreement was reached, the Higher Regional Court of Hamm was asked for opinion. From an economic point of view, the Higher Regional Court considered the discount as a discount for the granting of the loan capital and concluded that this remuneration should be repaid on a pro rata basis in the event of a premature termination of a long-term, but always negotiable contract. The clause was deemed ineffective by the court.
3. That’s not enough of the possibilities to force banks to be untruthful. Even in the case of refinancing, opinions may differ between bank and client. The XI. Civil Senate of the BGH expressed its opinion that a borrower can demand the early repayment of a mortgage loan if the property is to be sold or used as collateral with other institutions. In the view of the Federal Court of Justice, the borrower has a right of free disposal over his property, and this outweighs the interest of the bank, which is fully indemnified, for undisturbed contract execution. Although the BGH also admitted that the bank would have to be compensated. However, this compensation must not arise from the will of the bank and be open to the top. Even with refinancing, it can happen that a bank closes the loan. But since we customers have not fallen on our heads:
Accept and settle loan
Here is a tip: think about it. Maybe the bathroom needs a new coat, which devours about 5,000 euros? Could not it be that you need this amount for a new mortgage? The bank has no choice in this claim. She must accept the loan and settle it properly.
Despite unequivocal judgments, there are still money left over who, according to the widespread manner of modern times, want to do their share of greed for the customer. They calculate according to their rules and demand more than they deserve – often much more. We are aware of a case in which she asked for premature repayment of a loan over 550,000 euros 16,000 euros too much in fees.