Consumers could potentially save several thousand euros at the last minute by withdrawing from their loans. However, the withdrawal period is set to come to an end at exactly 12am on June 21.
GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London conclude: There is not much time left. Those who take swift action now and make timely use of their get-out-of-jail-free card could stand to save several thousand euros. But take note: the withdrawal period for real estate loans concluded between November 2002 and June 10, 2010 will end on June 21, 2016 at exactly 12am. This means that action needs to be taken and notice of withdrawal declared now.
Notice of withdrawal has to be received by the bank or savings bank in question no later than June 20 during normal business hours. Moreover, one should ensure that receipt of the notice is acknowledged. Notices of withdrawal that are received too late are not effective. The chance to benefit from the historically low interest rates, restructure one’s debts under favourable conditions or reclaim an early repayment penalty from the bank at the eleventh hour will thus have been squandered.
The priority must now be ensuring timely receipt of the notice of withdrawal so that all of the options associated with this get-out-of-jail-free card remain on the table. While it cannot be assumed that the banks will not put up a fight rather than simply accepting the withdrawal, the legal situation is clear in most cases and the case law is consumer friendly. Generally speaking, if the bank made use of flawed or inadequate guidance on the right of withdrawal that deviates even marginally from the applicable standard guidance, it remains possible to withdraw from the loan. Having said that, withdrawal is only effective if the bank receives notice before June 21, 2016. Withdrawal can then either be enforced in court or an out-of-court settlement can be reached with the bank.
Banks have also made use of flawed or inadequate guidance regarding the right of withdrawal in some cases concerning real estate loans that were concluded after June 10, 2010. In these cases, withdrawal is still an option even after June 21, 2016.
Lawyers who are experienced in the field of banking law are able to assess whether the conditions for loan withdrawal are met and can assert the right of withdrawal on behalf of consumers.
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