OGH Ruling on BAWAG Loan Processing Fees
In its decision, the Supreme Court found that the clause represents a significant disadvantage. The court sees difficulties in the method of fee calculation depending on the loan amount. In principle, processing fees for loans are not inadmissible. However, it is not understandable why the processing of a mortgage loan of 440,000 euros should require more effort than a loan of 220,000 euros, according to the court.
BAWAG Examines Impact of Supreme Court Ruling on Loan Processing Fees
"BAWAG acknowledges the Supreme Court's decision and is examining the specific implications of the ruling," said the bank. It has been given a period of six months for this. The Federal Division of Banks and Insurance in the Austrian Economic Chamber (WKÖ) emphasized in a statement on Monday that the procedure is "an abstract association procedure" in which clauses were assessed abstractly, but no statement was made on the legal consequences in individual cases, according to a statement on Monday. The Supreme Court decision therefore does not trigger "an automatic refund," said division manager Franz Rudorfer. An individual case assessment is necessary for this.
After Supreme Court Ruling on BAWAG Loan Processing Fees: VSV Also Plans to File Injunction
The consumer advocates see it differently. According to VSV, the bank must now refund the fees. "The banks have made exorbitant excess profits, so it is only fair and reasonable that fees wrongly collected are quickly and easily refunded to customers," said Daniela Holzinger-Vogtenhuber from VSV according to a statement. The Chamber of Labor (AK), which had sued BAWAG and Santander Consumer Bank, also wants to seek a solution so that affected customers "can easily and uncomplicatedly get back their wrongly paid loan processing fee," it said in a statement. For VSV, the Supreme Court ruling alone is not enough. In the coming days, VSV plans to file an injunction - initially against BAWAG, later against all other major banks. This is to ensure that consumers' refund claims do not expire. VSV also plans remedial actions should BAWAG refuse refunds.
(APA/Red)
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