Die Prepayment penalty causes dissatisfaction among many borrowers, especially when it comes to real estate financing. The decision of the OLG Stuttgart to repay one Early repayment penalty from the savings bank is therefore a significant development in consumer law. The Higher Regional Court declared the Sparkasse’s instructions to be incorrect and ordered the bank to repay the amount. This has far-reaching consequences for everyone who has paid an early repayment penalty in the past or is currently affected by such a claim.
OLG Stuttgart: Incorrect instructions on early repayment penalties
In a recent ruling, the Stuttgart Higher Regional Court made it clear that the instructions used by the Sparkasse to calculate the early repayment penalty do not meet the legal requirements. [Hier Platzhalter für den genauen Wortlaut einfügen: Erklärung, dass das OLG Stuttgart die verwendeten Belehrungen gemäß § 502 Abs. 2 Nr. 2 BGB als fehlerhaft ansieht.]
This decision means that many borrowers could be entitled to repayment of the prepayment penalty they have already paid. What is particularly important is that the court found that the savings bank’s calculation methods were opaque and incomprehensible to the typical consumer. The reference to terms such as “originally agreed payments” and “calculated remaining capital” was deemed by the court to be insufficiently clear and therefore not consumer-friendly.
What instruction was it literally?
“In the event of early repayment while the fixed interest rate is fixed, the savings bank can demand appropriate early repayment compensation for the damage directly related to the early repayment.
10.2 Early repayment penalty
The calculation of the early repayment penalty (redemption compensation) by the savings bank is carried out in accordance with the legal requirements and the highest court case law. This is currently the so-called “active/liability method”. This calculation method positions the savings bank as if the loan had been continued as planned until the fixed interest rate expired. To determine the early repayment penalty, the loan funds that were repaid early are invested in safe capital market securities (Pfandbrief yields from the Deutsche Bundesbank). First, the amount required on the redemption date is determined in order to achieve all originally agreed payments from the loan agreement (interest, repayment) as well as the calculated remaining capital at the end of the interest rate fixation are included in this calculation. In addition, the discount applicable to the remaining fixed interest period and therefore to be reimbursed – based on the effective annual interest rate – is included in the calculation, provided a discount has been agreed.
The savings bank also determines the risk and administration costs that will be eliminated in the future and reduces the early repayment penalty accordingly.
The early repayment of the loan results in an institutional expense that will be billed to you.
When calculating the early repayment penalty, the following is also assumed:
– Taking into account the loan debt that is reduced through repayment;
– Consideration of agreed special repayment rights to reduce damage;
– Discounting of the determined damage amounts to the repayment date.
If the borrower informs the savings bank of the intention to repay the loan early, the savings bank will immediately send the borrower information in text form regarding the admissibility of the early repayment, if permissible, the amount of the amount to be repaid and, if applicable, the amount of the early repayment penalty.
What does the decision mean for consumers?
The decision of the Stuttgart Higher Regional Court makes it clear that borrowers who made payments based on incorrect information about the early repayment penalty may have been unfairly charged. In these cases, the savings bank must expect a repayment. The core of the problem was that borrowers were not clearly informed about how the savings bank calculates the early repayment penalty and exactly what steps lead to determining the amount.
For borrowers, this means that they now have a realistic chance of reclaiming their prepayment penalty. The prerequisite for this is that the instructions contained errors, as the Stuttgart Higher Regional Court found in this case.
How should those affected proceed?
If you are affected by an early repayment penalty from the savings bank, it is worth having your documents checked by an experienced lawyer. Many borrowers are unaware that they may be eligible for repayment because the calculation methods were unclear and flawed. In particular, the following points should be checked:
- Completeness and transparency of information: Was it clearly explained to you how the Prepayment penalty is calculated?
- Terms used: Was the term “calculated remaining capital” clearly explained?
- Legal requirements according to § 502 BGB: Did the bank’s instructions comply with the legal requirements?
Conclusion: Use your rights – get advice
The decision of the OLG Stuttgart is an important signal for borrowers who have had one in the past Prepayment penalty have paid. Incorrect instructions from the savings bank can lead to repayment. If you are also affected, you should act now.
