Loan management fee

DREPT BANCAR

Abstract

As a hypothetical example, the dispute in C-627/17 CJEU concerned the mention in the contract of administration costs at an annual rate of 2.4%, while the loan contract did not indicate the services for which the administration costs represent the consideration. The Court found that the charging of administration costs and a lending fee was provided for under national law and, unless the services provided in return for them do not reasonably form part of the services provided in connection with the administration or granting of the loan or unless the amounts of those costs and that fee payable by the consumer are disproportionate to the amount of the loan, those clauses cannot be regarded as adversely affecting the legal position of the consumer as provided for under national law.