Erste Bank and Sparkasse to refund unlawful credit fees

Erste Bank, S-Bausparkasse, and 29 Sparkasse branches in Austria have reached a settlement with the Arbeiterkammer (AK) to refund customers for unlawful credit processing fees. The agreement allows consumers to claim back certain one-time fees charged on consumer and housing loans dating back up to 30 years.

To qualify for a refund, the processing fee must have been at least 0.5 percent of the total loan amount. For consumer loans, customers can receive up to 90 percent of the fee back. For housing loans, the refund ranges between 35 and 80 percent depending on the fee amount. The settlement also covers additional costs such as loan opening fees, property valuations, and land registry documents.

Claims can be submitted via online forms on the respective banks' websites until July 31, 2027. For loans terminated before January 1, 2019, customers must provide documentation, which can be requested from their bank free of charge. The settlement applies regardless of whether the loan is currently active or has already been fully repaid.