OGH judgment: Bawags credit processing fees are illegal!

OGH judgment: Bawags credit processing fees are illegal!

Vienna, Österreich - The Supreme Court (OGH) decided in a pioneering judgment that BAWAG is not allowed to collect processing fees of 1.5 percent on consumer loans. This decision, the vienna.at on March 24, 2025, was considered a significant step in case law.

The trigger of this judgment is the lawsuit of the consumer protection association (VSV), which expects the repayment of fees. The OGH pointed out that the clause at a fee is a significant disadvantage for consumers and described the calculation of the loan processing fee as difficult.

legal foundations and effects

As early as 2024, the OGH had decided that the fee practice of a bank was illegal when lending, but at that time this was only considered an individual case. However, the current decision could have massive financial effects on the banks, since it affects the prevailing practice throughout Austria, which may face the industry with costs at billions of bills. The financial industry had initially not expected this change and considered earlier judgments to be irrelevant.

The OGH argued that these processing fees are "grossly disadvantageous" for consumers. Even if the court stated that such fees are generally not inadmissible, the specific practice of BAWAG is hereby classified as illegally. In addition, the Austria Chamber of Commerce (WKÖ) emphasized that this judgment creates the basis for legal steps, but does not result in any automatic repayments.

reactions of those affected and future steps

The VSV has already announced that he is aiming for an injunction against BAWAG and other banks to secure consumers' claims for recovery. The Chamber of Labor (AK) plans to find solutions to repay the fees for affected customers, whereby the exact type of refund was not determined by the OGH. In the event that Bawag refuses to repay, the VSV also plans to remedy.

Richard Eibl, Managing Director of the process finance company Padronus, sees this judgment an expression of the so -called "labeling of labels" in these fees. These were often only used as camouflage for high interest rates. The goal of Padronus and the VSV is to proceed against the banks through merging group procedures, with several thousand affected support.

The decision of the OGH is seen as a potential domino effect for other pending cases where similar fees have been requested. The problem shows that many banks have acted non -transparently over the years and raised high fees for services that were not clearly justified. With this new legal situation, the pressure on the lender could increase considerably in order to offer fair and transparent solutions for their customers.

The next six months will be decisive because BAWAG has time to examine the effects of the judgment and possibly react to the demands of consumers and the associated lawsuits.

Overall, this situation shows how important the protection of consumers is and how legal decisions can significantly influence the practices of the banks. This case will certainly result in extensive discussions and legal disputes.

For more information about the details of the judgment and its effects, we would like to report on the reporting of Meinbezirk.at