Afraid of the banking sector: The Supreme Court (OGH) spoke a directive judgment in the process of the Consumer Protection Association (AK) (AK) (AK) against Bawag or Santander Consumer Bank. According to this, their reimbursement costs for loans are illegal. The judgment could now have many consequences for other large banks.
The OGH declared the processing costs of 1.5 percent in the BAWAG as non -admissible for consumer loans. According to the VSV, who brought the lawsuit to the AK, the bank must now repay the collected reimbursements. According to the OGH, the extra reimbursement at Santander Cosumer Bank is also not permitted.
Type of calculating the costs problematic
The clause was roughly disadvantageous, the OGH said in his decision. The Court of Justice sees problems calculating the costs, depending on the amount of the loan, but credit processing costs are not generally not -inadmissible. However, it is not understandable why the allocation of a mortgage loan of 440,000 euros should cause more effort than a loan of 220,000 euros, the court writes.
BAWAG has a period of six -legs
“Bawag takes note of the decision of the Supreme Court and investigates the concrete effects of the verdict,” said the bank. For this she received a period of six months.
VSV also wants to bring in an order
According to VSV, the bank must now repay the costs. “The banks have made exorbitant excesses, so it is only free and cheap that costs are incorrectly and easily received from customers,” said Daniela Holzinger-Vogtenhuber of VSV.
Are other large banks on the collar?
With the OGH judgment, however, it is not enough for the VSV. In the coming days, the association is planning to set an order – initially against Bawag, later against all other large banks. This is to ensure that the claims for the recovery of consumers do not lapse. The VSV is also planning to remedy remedies if the BAWAG refuses refunds.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
