Customers have to keep this in mind when repaying

Frankfurt An attic in a prime location in the trendy Kreuzberg district, shell construction, wooden beams: In 2017, Justin Parfitt and his wife Annabelle bought the top floor of an apartment in Berlin to build a loft there. For the purchase and the renovation work, the British couple took out two loans from the Commerzbank over a total of 550,000 euros. But what begins as a dream investment turns into a financial disaster for the two entrepreneurs.

The Parfitts see the fault at Commerzbank. When the couple gets into financial distress, they want to sell the property and repay the loan early. But the bank demands high fees: The couple should pay around 40,000 euros, mainly as a so-called early repayment penalty.

Banks in Germany are allowed to demand compensation if customers repay a real estate loan earlier than planned. If the loan has not yet been used, as in the case of one of the Parfitts loans, the amount is called a non-purchase compensation.

The couple is at a loss: Neither of them can understand how the high sum comes about. But that’s not all: When the couple has already found a buyer for the apartment, Commerzbank suddenly doubles the fees to around 80,000 euros – a mistake that the institute will only admit and correct months later.

The dispute has been dragging on for months, among other things, the Parfitts have turned to the arbitration board of the private banking association BdB. In the meantime, the family has moved in with friends and borrowed money from acquaintances to make ends meet. “Commerzbank destroyed me financially,” complains Justin Parfitt.

Commerzbank explains that it is in a “direct dialogue” with Parfitt and refers to the arbitration procedure: “We significantly increased the settlement recommended there. This offer of an amicable solution is available to the customer. “

Faulty contracts could affect thousands of customers