The Czech Central Bank has laid down the law on how much banks can charge their mortgage clients who decide to pay off treat their loans early. In a document published March 7, banks learned that they would only be allowed to included charges that were directly connected to the ending of the loan. The CNB will also require the banks to justify the amount of the charges. In practice, these charges may include the copying of documents, postage as well as manipulation charges, but they should only amount to hundreds of crowns only and not thousands or tens of thousands. The practice of fining clients for lost profits will not be tolerated any more as it is not an actual cost related to the premature termination of the loan.
