Prepayment penalty

My question was ultimately motivated by whether the low reinvestment interest rate is okay, which apparently is the case.

In the end, the bank is also playing another card here: they take the remaining interest, apply 90% of it as VFE, and simply wait to see if you swallow the bitter pill. Time and low dispute value are against you and in favor of the bank, meaning it is easy for the bank to enforce their claim fully or up to 90%.

Of course, they know this, and in my opinion, it is quite independent of the reinvestment interest rate.

Best regards
Dirk Grafe

Very unlikely, Mr. Grafe, even if many consumer advocates like to attribute that to the banks. A bank, whether big or small, can no longer afford that.

The example of the OP shows that it works with small amounts/remaining terms or that a legal dispute is not worthwhile. From a certain scale, it works again because the lawyer costs less than what you can gain. Happens every day, business as usual.

Best regards
Dirk Grafe

That is an accusation and not a very nice one, I think!!! But the banks have been the boohoo-men for everything and everyone for a few years now...

If this is an accusation, I wonder how the respective specialist lawyers managed to achieve reductions in amounts in the 4- and 5-figure range compared to the original claims of the bank within a few weeks or less than a few months.

Moreover, you are free to go to your bank advisor and make a counteroffer – whether they accept it or whether it can become profitable for you, you will see then.

Best regards Dirk Grafe

In the end, the bank is also playing another card here: they take the remaining interest, apply 90% of it as VFE, and simply wait to see if you swallow the toad. Time and low dispute value are against you and in favor of the bank, i.e., it is easy for the bank here to enforce their claim fully or at 90%.

They obviously know this, and in my opinion, it is quite independent of the reinvestment interest rate.

Best regards
Dirk Grafe

I know for certain that at least many banks calculate correctly and the calculation is comprehensible (calculation sheet is handed over). My customers also receive a correct calculation based on the reinvestment interest rate.
Due to the BGH decisions in recent years, the calculation of VE has become quite transparent.