Banks have always opposed the abolition of fines for early repayment mortgages. They lost an easy source of income due to the abolition of the fine. Penalty for early repayment mortgages it is obscene because clients are actually penalized for behaving economically, paying their debts on time. Nowadays, when we constantly hear how it is Czech republic stewed in debts, executions etc., we should rather reward those people who pay their debts on time and not penalize them yet.
Decision Czech National Bank it was therefore right to cancel the fine. No price increase mortgages, which the banks threatened, did not occur because of him. However, some of the banks did not accept the new situation. Furthermore, they charge inattentive clients fines in the order of tens of thousands. At the same time, they use not entirely unambiguous legislation, which they interpret in their own way, contrary to its spirit, but also in conflict with moral and ethical principles. We should break down the debt culture in the Czech Republic, not encourage it to increase. This also applies to banks, which, of course, live largely on debt. Debt should always exist only when it is necessary for development economy.
The client should not like the fine for early repayment. The average has been declining recently interest rate mortgages, so many clients repay early mortgages at one bank, taking at the same time mortgage at another bank, at a lower interest rate. Some banks try to make this so-called refinancing more difficult for clients with a fine for early repayment. Even in this case, the fine is unfair because it is against the principles of healthy competition. Banks have to compete with each other by how low the client’s rate can be mortgages set, and not the amount of fines.
Therefore, if the client records the costs associated with early repayment mortgages counting more than just a hundred crowns, he should contact and tell the bank, for example, that he will deal with the whole matter with his lawyer. Or with a non-profit organization to help over-indebted people. In such a case, the bank usually “jerks” and significantly reduces the fine.