In recent years, banks have increasingly withdrawn their loan agreements to other banks or financial investors. However, there are also banks that explicitly guarantee their customers that they will not resell the loans. What is behind the assignment of loan agreements by the banks?
It’s billions of dollars for the banks when they sell their real estate loans – mostly to foreign financial investors. Most often, the banks are doing problem loans and loans with arrears. But even loans, the rates are always paid on time, often end up in a package of bad loans to a new lender.
Already with small arrears of installments, the buyers cancel the loans and initiate a foreclosure sale. Even borrowers who pay on time have already been forced to foreclose, because the buyers of real estate loans have only one goal: to sell the newly acquired credit claim as quickly as possible and to achieve the highest possible profit.
Of course, you as a customer are not vulnerable to the new creditor. The new lender must abide by the old bank contract. You can successfully defend yourself by legal means. Read the verdict at the end of the article.
What can you do as a borrower in advance? Well, your best protection right now is a so-called ban on assignment in the certificate – in writing. Some banks also assure you in the loan agreement that they will not resell the loan. These banks include, for example, the cooperative banks and savings banks, but also normal retail banks.
However, you should be aware that this guarantee is usually only valid as long as you make punctual payments. If not, the warranty can be canceled immediately.
Some banks reacted to the negative consumer reactions that the BGH judgment of 2009. They offer “non-collateral” real estate loans, usually for a small premium on interest. Inquire with your desired bank for this possibility.
Nonetheless, there are still a large number of financial institutions on the financial market who are not engaging in a ban on assignment. They list the clause of consent for a later loan sale even in the loan agreement. Therefore, read your contract carefully and decide for yourself whether you would like to sign this clause because of the most favorable interest rates.
As part of the assignment practice, the ghosts divorce, an explicit law was not published contrary to the plans of 2008, the Federal Government. Therefore, we have compiled some judgments for you:
The plaintiff took up a loan relationship with the defendant savings bank in the 1990s. After ceding the loan agreement, the Parkasse made a determination to the Court that, irrespective of a declaration of assignment by the Parkasse, the loan would continue to exist and would continue to hold the land charges recorded to cover the loan repayment claims. He justified his indictment with the fact that the assignment constitutes a breach of banking secrecy and Section 203 (2) sentence 1 no. 1 of the Criminal Code (violation of private secrecy by public officials). The lower courts and the Federal Court rejected the lawsuit. An assignment of a credit agreement does not constitute a breach of banking secrecy.
The loans and mortgages of Bank were sold to the Star company, which for its part demanded unrestricted power of attorney from the borrowers and, in the event of missing or unsuccessful approval of foreclosure measures, smashed the collateralized land. The GLO in Munich (AZ 5 U 5102/06) ruled on 26 February 2008 as follows: The executed foreclosure measures from the land charge order documents by Westend Olympic aare inadmissible. Westend Olympic must inform the plaintiff of all payments received from enforcement measures. Thus, the court sided with the plaintiffs and also examined for the first time the legally and above all morally highly questionable business methods of Westend Olympic.
The VCBZ, the Federation of German Consumer Organizations, is banning financial institutions from reselling credit claims. Clauses in the credit agreement in which the banks can be signed by their customers, that they may resell customer data and the loan including the collateral to third parties, are unlawful according to the VCBZ. Several banks have already been warned and asked to stop this action.