Reclaiming Loan Processing Fees: How to Get Your Money Back from the Bank

In the past, banks almost standardly charged a so-called loan processing fee (Kreditbearbeitungsgebühr) when concluding loan agreements. For a long time, this was considered legally undisputed. However, recent rulings by the Austrian Supreme Court (OGH) have significantly strengthened the position of borrowers. In many cases, a refund is now possible—for both private individuals and companies.

What Are Loan Processing Fees?

Loan processing fees are one-time charges levied by banks to cover the administrative effort associated with granting a loan. These typically include:

• Consultations and offer preparation
• Creditworthiness and risk assessment
• Contract drafting and documentation
• Valuation of collateral and disbursement

The Problem: The effort required for a high loan amount often differs only marginally from that of a small loan. Therefore, a percentage-based fee without a cap is often not factually justified.

Jurisprudence generally assesses unlawfulness based on three central criteria:

Use of Standard Terms and Conditions (AGB)

The fee must be part of the General Terms and Conditions (GTC/AGB) or a pre-formulated standard contract. The decisive factor is that you, as the customer, had no real choice (“take it or leave it”). If there is a significant imbalance in the contract drafting, legal protection applies.

Gross Disadvantage (Section 879 Para. 3 ABGB)

A fee is unlawful if it grossly exceeds the bank’s actual expenditure.

Example: For a loan of €500,000 and a fee of 3%, the bank charges €15,000 just for processing. Since the time required for mortgage loans rarely justifies such an amount, the clause is usually considered “grossly disadvantageous.”

Important for companies: This provision applies not only to consumers but also in the B2B sector for entrepreneurs.

Violation of the Transparency Requirement (Section 6 Para. 3 KSchG)

In the case of consumer transactions, transparency is a further key requirement. Consumer borrowers must be able to understand:

• specifically what they are paying for,
• which services are covered by the processing fee,
• and whether there are any overlaps with other fees.

If it is not clearly identifiable which activities the fee covers, or if the scope of services remains vague, the clause may be deemed invalid.

Refund Amount and Statute of Limitations

How much money can I reclaim?

In principle, the entire unlawful fee can be reclaimed. Since the bank withheld the money unlawfully, you are also entitled to interest on these amounts.

Statutory Limitation Periods

Main Claim: The claim for repayment of the fee expires only after 30 years. You can therefore reclaim fees from very old contracts. Interest on these amounts expires after 3 years.

Conclusion: Check Your Chances of Success

The chances of a successful refund are particularly high if:

1. The fee was calculated as a percentage.
2. No upper limit (cap) was agreed upon.
3. The bank’s actual effort is disproportionate to the fee charged.
4. The underlying clause is formulated in an intransparent manner (in the case of consumers).

A legal review of your loan agreement can be financially very rewarding. Often, a well-founded demand letter is enough to convince the bank to settle.

Were you charged excessive fees on your loan?

Contact us for a legal assessment of your case. We help you enforce your claims against the bank and secure your refund.