The banks offer a wide range of personal loans and mortgage loans. A wide variety of financing options are offered. In the past, a processing fee was often charged for consumer loans. This usually made up between one and three percent of the loan amount and was directly met by the amount paid out.
Legal Case law
According to the latest legal case law, a processing fee for consumer loans is no longer legally permissible. Accordingly, private customers have the option of reclaiming a fee that may be charged. There was a deadline for old cases, but this has expired.
The majority of banks abide by the agreement and no longer charge a processing fee. Consumers can therefore approach the credit institutions carelessly on this point. However, this processing fee was included in the interest.
It can be assumed that the total interest amount was ultimately increased by the amount of the processing fee. So it remains doubtful whether the legislature could achieve the desired effect with its regulation.
Hidden processing fee
Some credit institutions have found a loophole in the legal text and are charging a “non-term processing fee” instead of the processing fee. This fee has replaced the processing fee at these banks. It is now up to the consumer to decide whether the loan offered is what they want or not. Ultimately, it is not the processing fee that decides here, but the overall concept. The total cost of the loan provides information about which of the offers is cheapest.
These consist of interest and all other fees and charges included in the loan. This is irrespective of whether it is a personal loan or a mortgage. Also note the costs of providing collateral, which can be significant in some cases. Especially the land register and notary fees add up again.
It can therefore be cheaper to accept a loan, for example for modernization, with a slightly higher interest rate if the lender waives the expensive entry of the land charge.
Credit intermediary fees
With credit intermediaries, who mostly offer their services from the Internet, it must be ensured that they usually receive a fee. This must also be included in the total costs. These agency fees are similar to a processing fee and often amount to one percent of the loan amount, but if this is small, a fixed price is also agreed.
Some banks also agree on processing fees for repaying the loan. This is a popular source of income for credit institutions. This fee is due plus a prepayment penalty for the interest loss in the event of unscheduled repayment of the loan. Fair installment credit banks only take the processing fee and waive the prepayment penalty.
So pay attention here to the structure of the loan agreement. You can choose from a wide variety of providers.