Fees are always a nuisance. The loan with no processing costs, which puts an end to the inappropriate cost of credit. But, how come the processing fees and what can be done? What is to advise people who still have credit agreements that involve processing costs? The answers can be found in the article.
Credit without processing costs – up-to-date loan agreements.
The loan without processing costs is the contemporary form of a loan agreement. Processing fees, which were quite appropriate in the past. They were the expense reimbursement for the employee’s worker who was responsible for the account setup and management. Each booking was associated with human work. The administrative work was very time consuming. These labor costs were allocated to the borrowers via the processing fee.
In the modern computer age, no employee is battling through dusty files. Already at the time of application the borrowers take over a large part of the entries in the online procedure. The administrator only checks these entries. Even without this support, a loan account can be created by the employee within just a few minutes. Even the credit check is largely computer-controlled. All this work and also the advice of the customers are largely automated. Any additional costs that could be charged to the customer will no longer arise. The processing fees are therefore no longer up to date. This opinion was also confirmed by the Duncth in its ruling of May 2011.
What are the consequences for borrowers?
First, the judgment “only” is the legal opinion of the Higher Regional Court. The verdict is not yet final by the contradiction of the banks. Only when the Federal Supreme Court has finally decided on the matter, then consequences for loan agreements can be expected. However, since the prospects are good that the clause for processing fees will finally be overturned, old contracts should be traded. Anyone who discovers processing fees when reviewing their contracts should take precautionary action. For the contradiction simply model contracts from the Internet can be used. Thus the statute of limitations of the reclaim claims is timely prevented.
People who are currently considering borrowing should immediately apply for the loan without a processing fee. Costs that are without consideration should not be paid. Some providers have already reacted to the verdict. Particularly with direct banks, credit is offered more and more frequently without any processing costs.