Supreme Court rules one-off loan processing fees are lawful

Banking & Finance

Mag. Stephan Schmalzl, ILO Newsletter vom 10. Juni 2016

The Supreme Court recently held that one-off loan processing fees charged by banks are lawful. Based on a detailed assessment, and while outlining the material differences between Austrian and German law, the Supreme Court held that one-off loan processing fees qualify as contractually agreed principal performance obligations that are not subject to the control of unfair terms under Section 879(3) of the Civil Code.