How can I defend myself against unauthorized interest rate adjustments in my loan agreement?
December 14, 2022 | 40,00 EUR | answered by Karl Böhm
Dear Bank Law Attorney,
my name is Lorenzo Koch and a few years ago I entered into a loan agreement with my bank. Lately, I have noticed that the bank is making unauthorized adjustments to interest rates, significantly increasing the cost of my loan. This concerns both the amount of interest and the way in which they are adjusted.
I am concerned that these unauthorized interest rate adjustments are putting a heavy financial burden on me and would like to know what options I have to fight against them. I have already tried to discuss the issue with my bank, but we could not reach an agreement.
I would like to know if there are legal actions I can take against the unauthorized interest rate adjustments in my loan agreement. Are there specific laws or regulations that protect me as a consumer from such practices? What steps can I take to enforce my right to fair terms in my loan agreement?
I am grateful for your assistance and look forward to hearing from you on how I can effectively defend myself against unauthorized interest rate adjustments in my loan agreement.
Thank you in advance.
Sincerely,
Lorenzo Koch
Dear Mr. Koch,
Thank you for your inquiry regarding unauthorized interest rate adjustments in your loan agreement. It is understandable that you are concerned and want to defend yourself against these practices. As a lawyer specializing in banking law, I can provide you with some possible steps you can take in this situation.
First and foremost, it is important to know that consumers in Germany are protected against unauthorized interest rate adjustments by various laws and regulations. In particular, the Civil Code (BGB) and the Consumer Credit Act (VerbrKrG) contain provisions that are intended to ensure that consumers are treated fairly.
If you find that your bank is making unauthorized interest rate adjustments, you should first formally complain in writing and request proof. Ask the bank to reverse the interest rate adjustments and adhere to the agreed contract terms. If the bank does not respond to your complaint or refuses to correct the adjustments, you may consider taking further steps.
One option is to hire a lawyer specializing in banking law who can represent your interests against the bank. A lawyer can assess whether the interest rate adjustments are indeed unauthorized and advise you on the legal steps you can take. In many cases, it is also possible to reach an out-of-court settlement with the bank to resolve the conflict without going to court.
If an out-of-court settlement is not possible, you may also consider filing a lawsuit. In such a proceeding, you can assert your claims and demand the reversal of the unauthorized interest rate adjustments as well as any potential damages.
It is important that you keep all documents and records related to your loan agreement and interest rate adjustments carefully to support your claims. The more detailed your documentation of the interest rate adjustments, the better your chances of enforcing your right to fair terms.
I hope this information helps you and answers your question. If you need further assistance or more detailed advice, I am available to help.
Best regards,
Karl Böhm, Lawyer specializing in banking law
