Today, installment credit without a processing fee is not yet the rule. Despite the clear jurisprudence of the higher regional courts, many banks still adhere to prehistoric fee practice. Contemporary lenders, on the other hand, do without antiquated fee rates.
Installment loan without processing fee – put an end to the rip-off of fees.
Processing fees are a relic from times long past. Hordes of bank employees used to be busy booking and keeping accounts. Everything was done manually. If the customer came with questions, the human work was asked again. In order to cover this workload, the one-time processing fee was rightly calculated. In the age of computers, of course, nobody books manually anymore. The work involved in creating and maintaining a credit account is no greater than maintaining a customer account with a building materials dealer. The Oberlandesgerichten also see it in their current case law.
Modern offers are increasingly moving towards recognizing the requirements of current case law. You cut the processing fees – processing costs. The lost fee income is included in a slightly higher base rate. Many people wonder what is the advantage of taking out an installment loan without a processing fee. At least at first glance, there is no price advantage. The processing fee of an average of two percent of the loan amount is included in the annual percentage rate. In a direct comparison of interest rates, the offers are the same. So what’s the advantage?
Loan offers without processing fees – the customer benefit.
The customer benefit only catches the eye on closer inspection. Loans are often repaid early. In the case of a vehicle loan, the old, partially paid car is given in payment. Installment loans are combined as part of a debt rescheduling and are therefore redeemed prematurely. Everyone has the right to early loan repayment, the interest must be fully calculated back. The fees, however, are lost in the event of early redemption. The installment loan without a processing fee compensates for this injustice.
The consumer advice centers advise you to appeal against the processing fee for old contracts. This is the only way to prevent the limitation period. A final judgment by the Federal Court of Justice will be a long time coming. Sample letters are already stored on the Internet. Borrowers who are currently looking for an installment loan should better take the installment loan without a processing fee.