Arrangement Fee Clauses in German Loan Agreements ruled invalid by German Federal Court

July 20, 2017

The German Federal Court issued a series of groundbreaking rulings on July 4, 2017. Arrangement fee clauses in German law loan agreements are invalid if they are included in general terms and conditions set by the lender. Borrowers are entitled to reimbursement of paid arrangement fees. The repayment claims will be limited to three years after the end of the calendar year when payment of the arrangement fee was made.

Read: "Arrangement Fee Clauses in German Loan Agreements ruled invalid by German Federal Court."

Read in German: "Unwirksamkeit bestimmter Bearbeitungsgebühren in Darlehensverträgen."