Loan Processing Fees Void for Lack of Transparency August 2026

In a further decision concerning bank processing fees, the Vienna District Court for Commercial Matters made the following findings and legal assessments of particular importance to borrowers acting as consumers:

When processing fees lack transparency

As the Austrian Supreme Court has clarified, the term “processing fee” is not inherently non-transparent, provided that consumers can understand precisely what it covers. In the case at hand, the loan agreement provided for a loan brokerage fee and account maintenance fees in addition to processing and valuation fees, all of which were charged to the consumer. The term “processing fees” was not defined, making it
impossible to determine which banking services were covered by the loan processing charge. It was not possible to distinguish these clearly from the services charged under “valuation fee” and “loan broker’s commission”. The clause concerning the loan processing fee, valuation fee and brokerage commission must therefore be regarded as non-transparent under the established case law.

Account maintenance fees for loan accounts

The account maintenance fee was also held to be void as grossly disadvantageous under § 879 Abs 3 ABGB. The court of first instance noted that account maintenance fees for current accounts and loan accounts are not comparable. A loan account involves a limited number of transactions which, assuming regular repayments, are clearly defined and foreseeable from the outset of the contractual relationship. Under § 10 VkrG, the lender is required to provide a repayment schedule regularly and free of charge. Maintaining the loan account therefore primarily serves the lender’s interests. Any benefit to the consumer, even from an online account that can be accessed at any time, is secondary, as the consumer can ascertain the outstanding balance from the repayment schedule. Compared
with a current account used for ongoing transactions, there is also no need for complex IT equipment or software.

Significance of the decision

This decision, which is not yet final, provides important guidance because it concerns a typical example of bank fees charged in the past.

Further information is available in our practice area Disputes & Litigation.