DEUTSCHE BANK

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


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Trick no. 5 : Conversion of variable interest rate to fixed interest rate

After conversion from CHF to PLN our loan is safe - its balance is quoted in currency that we have incomes and LTV is safe. Still, we are exposed to the risk of variable interest rates - that risk is not as bad as the risk of exchange rate, but it would be better to eliminate it from our life to make life more comfortable and predictable. So we decided to take steps towards eliminating the variable intereset rate risk from our loan. In order to do that, we had to apply for a change of the contract conditions and the bank produced an annex to the contract. Of course - the bank used this annex to force us to confirm that:
  • the initial loan balance was X CHF ;
  • the initial loan balance after currency convertion from CHF to PLN was Y PLN ;
  • Plus: if we wanted to make some early repayment of the loan (partial or the whole of it) we would pay some money to the bank as a fine.
    The bank knows exactly that the contract we signed is faulty and unfair and owes us some money due to high spreads used before conversion. And, instead of just trying to find a good solution (like - for example - returning all the high spreads to us), the bank uses every possible opportunity to make it difficult for us to get the money back. Our confirmation of the balances would probably be used against us in case of a lawsuit and we would lose if we decided to fight for our rights in a court. Deutsche Bank employees explain that before changing the contract conditions they have to be 100% sure that the contract is valid. Funny. So they have doubts and they ask US - the clients - to confirm that the loan contract is OK? That is unbelieveable.
    As a result of this thievery and very unfair Deutsche Bank procedure, we did not sign the document. But we are exposed to the risk of variable interest rates. We do not want to be exposed to this risk - but we have no choice. Deutsche Bank give us no choice. What should we do?



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    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