Many direct banks have been granting credit without fees for years. Modern credit procedures are no longer as personnel-intensive as they were 25 years ago. The waiver of fees was a logical consequence of customer-friendly loan offers.
Instead of waiting for the processing fees to be banned in 2014 according to the Best Lender judgment, online providers reacted proactively. Since around 2010, more and more direct banks have been removing processing fees from the loan terms.
We recommend borrowers to look at the total cost of financing instead of processing fees. The effective annual interest rate is particularly meaningful and easy to compare.
Loan without fees – reclaim fees paid
The Federal Court of Justice issued important judgments in May and October 2014 for dealing fairly with consumers. Processing fees for personal loans are not permitted. For borrowers who have paid processing fees for lending in the past, it is worth taking a closer look at the old contracts. Banks previously charged fees of between 1 and 4 percent of the loan amount.
Thanks to the deadline extension decided in October 2014, borrowers can now reclaim these fees for 10 years retrospectively. In another proceeding against the Lite Bank, the Best Lender decided again on February 16, 2016 in the interest of the consumer. Even the state development bank previously did not offer a loan without fees. Disbursement was called the required fee of 4 percent of the loan amount.
Borrowers can now also reclaim this money, but not retroactively as long as with private consumer credit. The court sets June 11, 2010 as the deadline for claims for recovery. Only loans that were taken out after the cut-off date will be made retrospectively free of charge by the judicial decision.
Credit without fees – so you will find the right offer
With a focus on overall loan costs, the free loan comparison is the perfect way to finance quickly and cheaply. Only three anonymous entries are necessary to carry out an online loan comparison. The loan calculator needs the desired loan amount, the planned term and the purpose. The loan comparison shows real-time loan offers in real time.
The effective annual interest rate gives a first impression of whether a regular loan is cheap or not. The representative example is more interesting than the advertised entry interest rate. It shows which interest rate 2/3 of all borrowers actually pay for the offer. With normal creditworthiness, instead of looking for credit without fees, it is worth having preselected interest rate offers that are independent of creditworthiness.
Effective interest rate independent of creditworthiness means that all borrowers who have sufficient creditworthiness to lend receive the same interest rate. Apart from people with excellent credit ratings, the credit-independent loan interest rate almost always offers the best value for money. This has a particularly clear effect on loan amounts of up to 3,000 net loans.
A current example would be Cream Bank small loan at an effective annual interest rate of 1.99 percent, regardless of creditworthiness.
Credit agency fees – does the Best Lender ruling have an impact?
People who have problems with lending but still don’t want to pay an intermediary are also looking for a loan without fees. Understandable, especially when there is a shortage of cash, everyone would like to save. If the ruling had an impact on the agent’s fees, many borrowers would be grateful. But, unfortunately, the brokerage fee is a brokerage fee according to $655. It is not a bank fee.
The judgment only refers to the processing fees of the banks and not the commission of the intermediary. The basis of the payment obligation is the loan brokerage contract. It must be completed in writing and only obliges to pay the agreed fee if the mediation was successful. The deadline for proof of success is the expiry of the cancellation periods. – Then the credit is already in the account.
Nevertheless, it is not necessarily certain that the agent’s fee bill will be in the mailbox after a successful loan brokerage. Prominent examples show that banks not only pay the commission, but even pay the agent himself. An example of this is the loan without Credit Bureau from abroad and another publicly funded loan through intermediaries.
Credit Bureau-free credit without fees – Cream Bank pays the fee
When it comes to loans without fees for the intermediary, neither banks nor credit intermediaries like to be looked at in the cards. Ultimately, what matters is what was agreed in the agency contract with the borrower. Nevertheless, several offers prove that a commission payment at the expense of the borrower is avoidable. The first example would be the Lite Bank loan.
Lite Bank promotional loan (151) cannot be applied for directly, but only through a commercial bank. Lite Bank’s current offer is: 0.75 percent effective interest for anyone who is qualified for the loan program. In order for an intermediary to be worth his money, his offer must be cheaper. It will be cheaper than the official interest offer if the bank, intermediary and borrower share Lite Bank’s commission. It is included in the 0.75 percent.
Another nice example is the direct application for a bank loan without Credit Bureau from abroad. The loan application can be made through an intermediary or directly to the bank. Without an intermediary, it is a loan with no fees for brokering. The bottom line is that the direct loan on the cent costs just as much as the same loan through a reputable broker.