On 23 January 2024, the Austrian Supreme Court (OGH) issued a new decision (2 Ob 238/23y) on upfront fees (Kreditbearbeitungsgebühren) for consumer loans. The plaintiff sought an order prohibiting the defendant from imposing upfront fees. This ruling is the first decision of the Austrian Supreme Court on the new lawsuits in connection with the commercially important topic of whether and under what conditions banks may impose upfront fees. Although the decision only addressed specific issues relating to the pending individual case, it has potentially far-reaching effects on the contracts and general terms and conditions in the financial sector.For more details on this ruling and its background, follow this link to the main article.
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