Legal basis for charging fees

The decisive legal basis for charging fees is provided by the contractual agreements between credit institutions and their customers. According to the general terms and conditions, the level of interest and fees for loans and services customary in the area of retail and corporate customers is set out in the notice of charges and additionally in the schedule of charges. Unless otherwise agreed, if a customer uses a loan or service specified therein, the interest and fees as stated at such time in the notice of charges or schedule of charges will apply. For services not specified therein which are performed on instruction by the customer or in his presumed interest and which can only be expected in return for a fee, the bank may determine the amount of fees according to its reasonably exercised discretion (section 315 of the German Civil Code (Bürgerliches Gesetzbuch – BGB)).

Whether and in what amount fees are charged for banking services is left solely to the specific competing credit institution to decide as a matter of its corporate policy. In the interest of freedom to contract, a bank and its customers are free to offer, conclude or refuse a contract on the respective terms.

BaFin does not regulate fees

In respect of their fee policy, the credit institutions are not subject to any regulations whose observance would be subject to supervision by BaFin or another authority. BaFin is not authorised to directly interfere with banks’ fee policy and to prohibit the banks from charging certain fees, to limit the levels of such fees or to review them in terms of legality.

In cases of dispute, the question of whether and to what extent a fee charged is justified on the merits and in terms of its amount can only be clarified by a court.