Glatzova & Co has represented Komercni Banka in judicial administrative proceedings seeking to overturn a Czech National Bank decision imposing a fine for an alleged breach related to early repayment of consumer housing loans with fixed interest rates.
According to Glatzova & Co, the dispute centers on whether, prior to amendments to the Consumer Credit Act, a lender’s unrecoverable funding costs from the date of early repayment to the end of the fixed-rate period qualified as “reasonably incurred expenses” associated with early repayment of fixed-rate mortgages. The Supreme Administrative Court upheld Komercni Banka’s cassation complaint and annulled the Prague Municipal Court’s decision for insufficient reasoning. The case has been remanded to the Prague Municipal Court for reconsideration.
The Glatzova & Co team included Partner Libor Nemec and Attorney at Law Radek Sendera.
