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tricks that the biggest german bank uses to get you trapped for life

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Trick no. 3 : Contract repairment

At some point, we decided to pay back the installments directly in CHF. That would make our monthly installments a bit lower. We decided we would buy CHF from online exchange services (which have very low spreads - 0.5% as compared to 9.5% at Deutsche Bank). So we went to the bank and asked if we could do this. The bank said yes. But....
The CHF denominated loans in our country have been a subject to legal actions carried out by polish institution called "The office of comsumer rights". The office did question the legitimacy of use of exchange rate tables by the banks in general for the purpose of loan payment. The exchange rates were determined by the bank arbitrarily, and the borrower had no option but to pay installments according to these rates. This is a very unfair practice by many banks in Poland. Contracts which include this sort of paragraphs have the potential to be made void during a law suit. Some courts in poland converted the loan from CHF denominated to PLN loans based on LIBOR (because the loan was financed in PLN and paid back in PLN).
So... when we wanted to start paying the monthly rates in CHF, Deutsche Bank found an opportunity to try to repair the faulty contract. We got an annex to the contract - another complex and lenghty document which contained many interesting paragraphs. The annex tried to include or replace all the missing elements of the contract:
  • in the first paragraph of the annex was a confirmation that the loan we were having was a CHF denominated mortgage loan;
  • in one of the paragraphs, the bank explained to us how the exchange rates in the bank's tables are determined;
  • in one of the paragraphs, the bank wanted us to confirm that we are aware of how the spreads could affect the monthly installments and the total loan cost (haha);
  • in one of the paragraphs, the bank wanted us to confirm that we would not use the right to lower the mortgage value;

  • So, of course, we did not sign the document bacause we were not sure how the annex would impact our chances to win a law suit. Later, we dicovered that some courts regarded signing this document as repairment of a faulty contract and the bank would win the law suit.


    Contents / Spis tresci

    Trick no. 1 : Mortgage loan selling procedure
    Trick no. 2 : The spreads
    Trick no. 3 : Contract repairment
    Trick no. 4 : Convertion of loan currency
    Trick no. 5 : Conversion of variable interest rate to fixed interest rate
    Problem no. 1: What should be done
    Problem no. 2: A very important question to finance specialists in poland
    Problem no. 3: Inconsistency of Deutsche Bank procedures of foreign currency loans handling
    Problem no. 4: Calculations before granting a CHF denominated loan
    [2021-07-14] One more inquiry about the balance clause in the annex
    Not available in english yet
    Not available in english yet
    Not available in english yet

    (c) 2020 by a Deutsche Bank client