The KB has to pay the fine within 30 days of the decision taking effect, while the decision went into effect according to data on the CNB website on June 10.
At the beginning of the year, the construction association Modrá pyramida, affiliated with the Komerční banka group, was fined five million for a similar error.
According to the now-published CNB decision, the KB did not reduce the total mortgage costs of interest and other costs for consumers who requested and repaid an early-term consumer housing loan between mid-March 2019 and mid-July 2020.
Customers will have to pay it back if the loan is not paid off early. According to CNB, the above interest expense amounted to 12.89 million CZK.
However, according to the Consumer Credit Act, in case of early repayment, the consumer has the right to reduce the total cost of the loan by the amount of interest and other costs that he will have to pay if the loan is not repaid early.
A creditor, such as a bank, is entitled to recover reasonable costs incurred in connection with early repayment, as stated on the Reporting List website.
According to him, Komerční banka is convinced that his approach is based on the explanatory note to the law, and does not rule out that the problem will also go to court.
“We’ve known that the National Bank of Canada has had a different opinion for a long time, and we believe that only an independent court can resolve this issue in a binding manner,” KB spokesman Pavel Zubek said.
The Chinese central bank fined KB in mid-February this year, and last week rejected an appeal against it and confirmed the original February decision.
Komerční banka is the parent company of the KB Group and part of the international Société Générale group.
It is one of the leading banking institutions in the Czech Republic and in the Central and Eastern European region. The main shareholder in KB is the French company Société Générale with a 60.4 percent stake. The shares of the bank are traded on the Prague Stock Exchange.
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