Citizens Sued Banks for Loan Processing Fees and Received Money
The Supreme Court decided in 2018 that banks have no right to charge loan processing fees. By the end of 2021, over 200,000 citizens had filed lawsuits against banks seeking repayment. They were winning their cases until the Supreme Court of Cassation changed its stance. Banks are now demanding that citizens return the money.
Citizens Sued Banks for Loan Processing Fees and Received Money Following a 2018 Supreme Court ruling that banks cannot charge loan processing fees, over 200,000 citizens successfully sued banks and received repayment. However, the Supreme Court of Cassation has since reversed its stance, allowing banks to charge these fees if disclosed in the contract. Citizens who previously won their cases must now return the money, including default interest, with the Constitutional Court expected to make a final decision.
- Banks can charge loan processing fees if disclosed in the contract, according to a revised Supreme Court stance.
- Over 200,000 citizens had successfully sued banks for these fees and received repayment before the reversal.
- Citizens who received money must now return it to the banks with default interest.
- A lawyer notes that prior to this, the dispute was about the clarity and justification of the fees, not the right to charge them.
- The Constitutional Court will now review an appeal on the matter.
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