Strengthening the German fixed-interest culture

Early repayment charge is permissible under European law / ECJ ruling is welcomed

The Pfandbrief banks welcome today’s decision by the European Court of Justice (ECJ). According to the ruling, the usual method of calculating early repayment charges is permissible under European law.

‘Today’s ECJ ruling is in the interests of all market players – on the one hand, consumers: It strengthens the German fixed-interest culture, which has always guaranteed the stability of the German property and financial market. And secondly, it creates important planning security for credit institutions,’ explained vdp Chief Executive Jens Tolckmitt. ‘It is also pleasing that there is no need for the German legislator to take action following the ECJ ruling.’